Pöyry PLC Interim report 28 October 2016 at 8.30 a.m. EEST
Operational business improving
Key figures for July-September 2016
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
Key figures for January-September 2016
|Order stock at the end of period, EUR million||434.0||487.8||-11.0||434.0||487.8||-11.0||465.5|
|Net sales total, EUR million||127.2||133.2||-4.5||399.1||430.8||-7.4||575.3|
|Operating result, EUR million||-1.0||1.1||n.a.||-5.2||3.9||n.a.||4.0|
|Operating margin, %||-0.8||0.8||-1.3||0.9||0.7|
|Adjusted operating result, EUR million||3.2||2.4||33.7||1.6||6.7||-76.8||9.4|
|Adjusted operating margin, %||2.5||1.8||0.4||1.6||1.6|
|Result before taxes, EUR million||-1.8||7.7||n.a.||-6.6||6.8||n.a.||6.0|
|Earnings per share, basic, EUR||-0.04||0.12||n.a.||-0.15||0.09||n.a.||0.09|
|Earnings per share, diluted, EUR||-0.04||0.12||n.a.||-0.15||0.09||n.a.||0.09|
|Earnings per share, adjusted, EUR||0.03||0.15||n.a.||-0.04||0.14||n.a.||0.18|
|Return on investment, %||-2.6||7.6||6.1|
|Average number of personnel, full time equivalents (FTE)||4,897||5,054||-3.1||5,029|
All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.
Financial outlook for 2016 unchanged
The Group's adjusted operating result is expected to be positive.
Martin à Porta, President and CEO:
"Our adjusted operating result increased compared to the same quarter in 2015, showing that our operational business is improving. Adjusted operating margin increased in the Energy and Management Consulting Business Groups as well as in Regional Operations, and remained stable in the Industry Business Group. We see positive development in small and medium size orders, market activity and sales prospects in general. However, the overall order intake decreased compared to the previous year. Net sales increased in the Management Consulting Business Group, remained stable in Regional Operations but decreased in the Energy and Industry Business Groups.
Cash flow for the quarter was better than in the previous year, though the year to date cash inflow is still unsatisfactory. We continue actions to improve the working capital further and as a consequence we expect to see an improvement in cash flow towards the end of the year.
Underperforming business units are improving and efforts to enhance profitability continue. Our operational framework and transformation programme is progressing. Adjusted items in the third quarter include restructuring expenses amounting to EUR 2.1 million related to actions to reduce fixed expenses. The ongoing investment in our new business management system allows us to increase business transparency and simplify our processes. There are clear actions underway to simplifying and empowering our organisation, and to strengthen our core, so that we can prepare to scale up.
We are maintaining our outlook that the Group's adjusted operating result is expected to be positive in 2016."
Market outlook 2016
The overall economic and market outlook for our sectors in 2016 remains uncertain. In Europe the growth remains fragile, delaying economic recovery and investment decisions. The developments in the European banking sector increase uncertainty. On the other hand, the public sector spending in Europe appears to be on the increase. Growth in the US is projected to remain robust. Asian market economic growth is slowing down. In Brazil, there are slight signs of an economic recovery, though not yet visible in our business. The market environment in the Middle East has become more challenging.
For the businesses relevant to Pöyry, the sector specific outlook remains mixed. In the forest product industry sectors, such as packaging and tissue, the outlook is improving. However, in the graphic paper industry the decline in structural consumption is set to continue. The energy market is facing structural changes in Europe.
Change in financial reporting practices
Pöyry PLC will change its financial reporting practices as of 1 January 2017. Pöyry PLC will publish half year and annual financial reports and will no longer publish interim reports for the first three and nine months of the year. Pöyry will publish its full year market outlook and financial forecast in the half year financial report and financial statement release.
Pöyry PLC will publish the following financial information in 2017:
The complete January-September 2016 interim report is enclosed with this company announcement and is available in full on the company's website at www.poyry.com . Investors are advised to review the complete interim report with tables.
Juuso Pajunen, CFO
Tel. +358 10 33 26632
Invitation to conference call today on 28 October 2016
The result will be presented in English at a conference for analysts, investors and the press at 1:00 p.m. Finnish time (EEST). The conference will be held at Pöyry house, Jaakonkatu 3, Vantaa, Finland. The event will be hosted by Martin à Porta, President and CEO, and Juuso Pajunen, CFO. The participants who will attend the conference at Pöyry house have been requested to inform about their participation by 25 October 2016.
The participants can also join a conference call that will be arranged in conjunction with the conference. The conference call details can be found below.
A live webcast of the conference can be followed online on the company's website at www.poyry.com/investors. A recording will be made available by the next working day on the same website.
To attend the conference call, please dial:
FI: +358 (0)9 7479 0361
SE: +46 (0)8 5033 6574
UK: +44 (0)203 043 2002
US: +1 719 457 1036
Other countries: +44 (0)203 043 2002
Conference ID: 5078615
Due to the nature of the live webcast, we kindly ask those attending the conference call to dial in 5-10 minutes prior to the start of the event.
Pöyry is an international consulting and engineering company. We serve clients globally across the energy and industrial sectors and provide local services in our core markets. We deliver management consulting and engineering services, underpinned by strong project implementation capability and expertise. Our focus sectors are power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry has an extensive local office network employing about 6,000 experts. Pöyry's net sales in 2015 were EUR 575 million and the company's shares are quoted on Nasdaq Helsinki (Pöyry PLC: POY1V).