Helsinki, Finland, 2014-09-25 07:00 CEST (GLOBE NEWSWIRE) -- YIT Corporation STOCK EXCHANGE RELEASE September 25, 2014 at 8.00 a.m.
PRESENTATION OF YIT’S PRESIDENT AND CEO AT THE CAPITAL MARKETS DAY: SOLID FOUNDATION FOR FUTURE GROWTH
YIT is organising a Capital Markets Day to present the company strategy, which was confirmed on September 11, 2014, for investors and analysts in Helsinki today, September 25, 2014. YIT will also comment on the recent development of its business operations.
YIT’s Board of Directors kept the Group’s long-term financial targets unchanged. At the same time it set new short-term financial targets aimed to be reached by the end of 2016. In the short term, the focus of operations will be on improving capital and cost efficiency rather than growth.
During the Capital Markets Day, YIT will also comment recent development of residential sales. Sales to consumers in the third quarter of 2014 is estimated to be more than 300 apartments in Finland, more than 150 apartments in the Baltic countries and Central Eastern Europe and around 900 apartments in Russia.
Kari Kauniskangas, President and CEO:
We expect the challenging situation in our main markets to continue in the near future. In the short term, we will focus on reducing debt as well as improving capital and cost efficiency instead of growth. Our task is to create a solid foundation for future growth. The trends, which our strategy rests on, are positive in the long term and provide us with new opportunities.
In the Housing segment, YIT pursues growth through self-developed projects focusing on affordability and improving the customer experience. The development of the operating environment guides the volume and geographical focus of residential start-ups.
In the Business Premises and Infrastructure segment, the aim is to increase the share of projects where the added value produced by YIT for the customer is high. The aim is supported by an operating model based on concepts and a wider geographical presence as well as special expertize.
In order to even out cyclicality, the weighting of Central Eastern Europe will be increased as the third geographic pillar in parallel with Finland and Russia. The significance of financial operating space is emphasised in a changing operating environment. The actions to improve capital efficiency continue according to the ongoing capital release program. The implementation of the strategy and reaching of financial targets will be supported by a group-wide competitiveness program.
YIT’s guidance for 2014 unchanged
The Group revenue based on segment reporting is estimated to grow by 0–5% at comparable exchange rates. The operating profit margin based on segment reporting is estimated to be in the range of 7.5–8.0% excluding non-recurring items.
Continuing uncertainty over the general macroeconomic development impacts YIT’s business operations and customers. Prolongation and escalation of the Ukrainian crisis would probably have a negative effect on YIT’s business operations.
Capital Markets Day
The Capital Markets Day’s programme starts today, September 25, 2014, at 8:30 a.m. local time (EEST). The event starts with the presentation of YIT’s President and CEO, which can be followed live on YIT’s website at www.yitgroup.com/webcast/cmd2014 . During the President and CEO’s presentation, a teleconference is also available for investors and analysts on the phone number
+44 20 31940550.
Further information about the Capital Markets Day and YIT’s strategy is available on YIT’s website at www.yitgroup.com/investors .
For further information, please contact:
Sanna Kaje, Vice President, Investor Relations, YIT Corporation, +358 50 390 6750 sanna.kaje@yit.fi
Timo Lehtinen, Chief Financial Officer, YIT Corporation, +358 45 6700 626, timo.lehtinen@yit.fi
YIT CORPORATION
Sanna Kaje
Vice President, Investor Relations
Distribution: NASDAQ OMX, Major media, www.yitgroup.com
YIT is a construction industry leader. We create better living environments in Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. Over 100 years of experience have secured for us a strong market position: We are the largest housing developer and one of the largest business premises and infrastructure developers in Finland, and the most significant foreign housing and area developer in Russia. Our vision is to stay one step ahead – while caring for our customers, partners and personnel. We have more than 6,000 employees in seven countries. In 2013, our revenue amounted to nearly EUR 1.9 billion. Our share is listed on Nasdaq OMX Helsinki. www.yitgroup.com
