ETTEPLAN OYJ, INTERIM REPORT, OCTOBER 30, 2013 AT 2.00 P.M.
ETTEPLAN Q3: DEMAND WEAKENED
Review period July-September 2013
- The Group’s revenue decreased by 4.8% and was EUR 27.5 million (7-9/2012: EUR 28.9 million). - EBITDA declined by 14.0% and was EUR 2.2 million (EUR 2.5 million). - Operating profit (EBIT) decreased by 19.0% and was EUR 1.5 million (EUR 1.9 million). The operating profit includes a positive non-recurring item of EUR 0.8 million related to the Tedopres acquisition and EUR 0.3 million in non-recurring costs. - The profit for the review period was EUR 0.9 million (EUR 1.0 million). - Operating cash flow decreased and was EUR -1.5 million (EUR -1.2 million). - Earnings per share were EUR 0.05 (EUR 0.05). - Following trades completed on August 16, 2013, Ingman Group Oy Ab’s holding of Etteplan’s share capital and voting rights increased to 30.52 per cent. Following the completion of a mandatory public takeover bid, Ingman Group’s holding of shares and votes increased to 66.85 per cent on October 14, 2013. - Etteplan adjusts its estimate of outlook.
Review period January-September 2013
- The Group’s revenue decreased by 3.3% and was EUR 96.2 million (1-9/2012: EUR 99.5 million). - EBITDA declined by 15.6% and was EUR 7.3 million (EUR 8.6 million). - Operating profit (EBIT) decreased by 23.5% and was EUR 5.2 million (EUR 6.8 million). - The profit for the review period was EUR 3.5 million (EUR 4.4 million). - Operating cash flow decreased and was EUR -2.4 million (EUR 2.8 million). - Earnings per share were EUR 0.18 (EUR 0.23).
Outlook 2013
Market outlook
Changes in Etteplan’s customers’ order books quickly influence the development of Etteplan’s revenue. At the end of the review period, the order books of Etteplan’s major customers were, on average, at a lower level than in the corresponding period in 2012. We estimate that the demand situation for engineering design services will remain at a weakened level during the remainder of the year.
Financial guidance
We expect the revenue for the year 2013 to be almost on the same level as in year 2012 and the operating profit for the year 2013 to be less than EUR seven (7) million.
Previous estimate of outlook 2013
Previous estimate of outlook 2013 was published on October 1, 2013.
Market outlook
Changes in Etteplan’s customers’ order books quickly influence the development of Etteplan’s revenue. At the end of the review period, the order books of Etteplan’s major customers were, on average, at a lower level than in the corresponding period in 2012. We estimate that the demand situation for engineering design services continues to be challenging.
Financial guidance
We expect the revenue for the year 2013 to be on the same level as in year 2012 and the operating profit for the year 2013 to be approximately EUR seven (7) million.
Key figures
| (EUR 1,000) | 7-9/2013 | 7-9/2012 | 1-9/2013 | 1-9/2012 | 1-12/2012 |
| Revenue | 27,510 | 28,909 | 96,209 | 99,536 | 134,479 |
| EBITDA | 2,170 | 2,524 | 7,260 | 8,602 | 11,154 |
| EBITDA, % | 7.9 | 8.7 | 7.5 | 8.6 | 8.3 |
| Operating profit (EBIT) | 1,515 | 1,871 | 5,226 | 6,833 | 8,715 |
| EBIT, % | 5.5 | 6.5 | 5.4 | 6.9 | 6.5 |
| Basic earnings per share, EUR | 0.05 | 0.05 | 0.18 | 0.23 | 0.29 |
| Equity ratio, % | 34.6 | 31.4 | 34.6 | 31.4 | 32.4 |
| Operating cash flow | -1,468 | -1,205 | -2,406 | 2,793 | 11,339 |
| ROCE, % | 12.9 | 15.9 | 15.2 | 20.8 | 20.4 |
| Personnel at end of the period | 1,721 | 1,773 | 1,721 | 1,773 | 1,776 |
Juha Näkki, President and CEO of Etteplan Oyj comments on the interim report:
“The market situation continued to be difficult in the third quarter. Following the summer, a large proportion of our key customers issued profit warnings and the demand situation weakened as customers initiated new cost-reduction measures.
We adjusted our operations in Finland, Sweden and the Netherlands to match the market situation. In Finland, the number of temporary lay-offs grew to the highest level seen since 2009. As the development of our result in the Netherlands lagged behind our expectations, we adjusted the additional purchase price related to the Tedopres acquisition to match the current level. This had a non-recurring positive impact on our result.
In China, the positive development of the market for engineering design services continued, and the number of working hours towards the Chinese market developed favorably. During the first three quarters of the year, the number of hours increased by more than 50 per cent compared to 2012, and in the third quarter we signed agreements on our first significant projects involving the sale of European top-level expertise to the Chinese market.
We continued to invest in the development of service solutions and updated our vision to highlight the significance of service solutions in our operations. Our new vision statement is: Our customers get the best service solutions anywhere at any time.
In the area of technical product information, several customers implemented our new service solutions. In addition, our amount of outstanding quotations for extensive outsourcing projects in the area of technical product information increased in the third quarter. Due to the significant market potential, we increased our product development investments in technical product information solutions in the review period and believe that the product development investments will create a foundation for business growth in 2014.
Etteplan’s ownership structure changed significantly as a consequence of a mandatory public takeover bid completed during the review period. We will continue to implement our strategy with the support of our new majority shareholder. I believe that our strong market position and service solutions will turn our revenue and operating profit back to growth when the market situation improves.”
Disclosure procedure
Etteplan follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Etteplan’s January-September 2013 interim report. The complete report is attached to this release in pdf format and is also available on Etteplan’s website at www.etteplan.com. Investors are advised to review the complete interim report with tables.
Conference call and live webcast today, October 30, 2013
Etteplan’s President and CEO Juha Näkki will present Company’s results for January-September 2013 in a conference call and a live webcast for analysts and investors, held in English language, starting at 15.00 pm Finnish time (EET).
To participate in the conference call please dial 5-10 minutes prior to the start of the conference +358 9 2319 5437, event password Etteplan2013. Questions can be asked in English after President and CEO’s presentation only through conference call connection.
Juha Näkki’s presentation can be followed as a live webcast through a link at Etteplan’s homepage at www.etteplan.com/Investors. The live webcast starts at 15.00 pm Finnish time (EET).
A recording of the webcast will be later available at the same address.
Hollola, October 30, 2013
Etteplan Oyj
Group Communications
Additional information: Juha Näkki, President and CEO, tel. +358 400 606 372
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan’s Web site at www.etteplan.com.
DISTRIBUTION: NASDAQ OMX Helsinki Major media www.etteplan.com
Etteplan provides engineering services and technical product information solutions to the world’s leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers’ products and engineering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can be seen in numerous industrial solutions and everyday products.
In 2012, Etteplan had turnover of EUR 134.5 million. The company has more than 1,700 professionals in Finland, Sweden, the Netherlands and China. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
