OUTOTEC OYJ INTERIM REPORT OCTOBER 28, 2016 AT 1:00 PM
INTERIM REPORT JANUARY-SEPTEMBER 2016
Minerals Processing recovering, continued challenges in Metals, Energy & Water
Financial guidance narrowed
January-September 2016 in brief (comparison period January-September 2015):
July-September 2016 in brief (comparison period July-September 2015):
Financial guidance for 2016 narrowed
Sales guidance is narrowed and due to the continued challenges in the Metals, Energy & Water segment adjusted EBIT is expected to be at the lower end of the guidance range:
* Excluding restructuring and acquisition-related costs as well as purchase price allocation amortizations.
Summary of the Group's key figures
|Order intake, EUR million||274.1||268.4||725.0||922.7||992.2||1,189.9|
|Service order intake, EUR million||121.4||138.3||335.5||387.4||444.8||496.6|
|Share of services in order intake, %||44.3||51.5||46.3||42.0||44.8||41.7|
|Order backlog at the end of the period, EUR million||1,029.7||1,116.7||1,029.7||1,116.7||1,029.7||1,102.8|
|Sales, EUR million||245.2||307.2||752.5||895.5||1,058.3||1,201.2|
|Service sales, EUR million||105.3||129.2||319.6||373.3||457.6||511.3|
|Share of services in sales, %||43.0||42.1||42.5||41.7||43.2||42.6|
|Gross margin, %||23.5||27.9||24.7||28.4||25.2||27.9|
|Adjusted EBIT 1 , EUR million||1.6||14.7||1.7||38.4||19.3||56.0|
|Adjusted EBIT 1 , %||0.7||4.8||0.2||4.3||1.8||4.7|
|EBIT, EUR million||-1.2||6.7||-14.3||18.3||-44.8||-12.3|
|Profit before taxes, EUR million||-3.9||2.5||-21.5||9.2||-53.6||-22.9|
|Net cash from operating activities, EUR million||-23.1||64.8||-72.7||21.9||-25.1||69.5|
|Net interest-bearing debt at the end of the period, EUR million||-20.8 2||74.3||-20.8 2||74.3||-20.8||39.9|
|Equity at the end of the period, EUR million||534.5||425.8||534.5||425.8||534.5||404.7|
|Equity-to-assets ratio at the end of the period, %||41.9 2||32.2||41.9 2||32.2||41.9||31.1|
|Gearing at the end of the period, %||-3.9 2||17.4||-3.9 2||17.4||-3.9||9.9|
|Working capital at the end of the period, EUR million||-10.0||-12.0||-10.0||-12.0||-10.0||-89.4|
|Return on investment, %, LTM||-6.0||3.7||-6.0||3.7||-6.0||-1.5|
|Return on equity, %, LTM||-8.4||1.5||-8.4||1.5||-8.4||-4.0|
|Personnel at the end of the period||4,167||4,913||4,167||4,913||4,167||4,859|
|Earnings per share, EUR||-0.03||0.01||-0.12||0.03||-0.25||-0.10|
Excluding restructuring and acquisition-related costs and PPA amortizations.
2 If the hybrid bond were treated as a liability the equity-to-assets ratio would be 30.2%, gearing 33.6%, and net interest-bearing debt EUR 129.2 million.
President & CEO Markku Teräsvasara:
"The minerals processing market showed signs of recovery and our third quarter total order intake grew compared to last year. The market environment continued to be challenging for the metals refining segment. The service business suffered from weaker demand due to postponements in maintenance and modernization projects.
Our profitability and cashflow were impacted by weak performance in certain large Metals, Energy & Water projects. We are actively working on improving our performance in this segment.
We have been able to reduce fixed costs by EUR 56 million from a year ago, and the targeted EUR 70 million savings are on track. We continue cost saving actions, especially in the Metals, Energy & Water segment.
We have significant opportunities in our installed base, and we will now strongly focus on improving our service capabilities.
Outotec has developed and commercialized modular plant concepts. In the third quarter, we received three orders for modular plants with customer benefits, such as fast-track delivery and easy maintainability. We will continue to productize our solutions and services.
We expect the minerals processing market to continue gradual improvement, while metals refining is expected to remain weak. Customers are focusing on reducing their production costs and we do not expect major changes in the service market soon."
This text is a summary of Outotec's January-September 2016 Interim Report. The full report is available as an attachment to this report.
Markku Teräsvasara, CEO
Tel. +358 20 529 211
Jari Ålgars, CFO
Tel. +358 20 529 2007
Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname@example.org
Date: Friday, October 28, 2016
Time: 3:00 PM
Venue: Outotec House, Rauhalanpuisto 9, Espoo, Finland
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FINANCIAL REPORTING SCHEDULE IN 2017
The Financial Statements for 2016 will be published in week 9 of 2017. The 2017 Annual General Meeting is planned for March 30, 2017.