Pöyry PLC Half year financial report 4 August 2017 at 8.30 a.m. EEST
Operational improvement continued
Key figures for January-June 2017
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
- The adjusted operating result increased to EUR 10.0 (-1.7) million. It improved in all business lines except in the Management Consulting Business Group. Operating result was EUR 3.7 (-4.2) million.
- Net sales were EUR 267.3 (271.9) million. They remained stable in the Regional Operations Business Group and slightly decreased in the other business lines.
- Order intake increased compared to the corresponding period in the previous year and resulted in the Group's order stock of EUR 474.5 (457.8) million.
| 1-6/ | 1-6/ | Change, | 1-12/ | |||||
| Pöyry Group | 2017 | 2016 | % | 2016 | ||||
| Order stock at the end of period, EUR million | 474.5 | 457.8 | 3.7 | 442.5 | ||||
| Net sales total, EUR million | 267.3 | 271.9 | -1.7 | 529.6 | ||||
| Operating result, EUR million | 3.7 | -4.2 | n.a. | -8.1 | ||||
| Operating margin, % | 1.4 | -1.6 | -1.5 | |||||
| Adjusted operating result, EUR million | 10.0 | -1.7 | n.a. | 5.8 | ||||
| Adjusted operating margin, % | 3.7 | -0.6 | 1.1 | |||||
| Result before taxes, EUR million | 2.2 | -4.8 | n.a. | -10.6 | ||||
| Earnings per share, basic, EUR | -0.01 | -0.11 | 88.7 | -0.24 | ||||
| Earnings per share, diluted, EUR | -0.01 | -0.11 | 88.7 | -0.24 | ||||
| Earnings per share, adjusted, EUR | 0.09 | -0.07 | n.a. | -0.01 | ||||
| Gearing, % | 30.5 | 32.7 | 27.0 | |||||
| Return on investment, % | 5.0 | -2.9 | -3.2 | |||||
| Average number of personnel, full time equivalents (FTE) | 4,545 | 4,900 | -7.3 | 4,839 | ||||
All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.
Martin à Porta, President and CEO:
In the first half of 2017 we have shown continued improvement in our operational business compared to the first half of 2016. Our adjusted operating margin increased in every business line except in the Management Consulting Business Group. Streamlining measures have enabled loss reduction in unallocated expenses on an adjusted basis.
Our cash flow improved significantly compared to the first half of 2016 but still shows further potential for improvement. The increase in order stock continued and was in all business lines above the comparative levels from the first half of 2016.
The transformation project started in 2016 has been received well and is showing clear progress. Employee engagement continues to increase and our improved client focus enables us to better position our new offerings. We see increasing demand for our smart solutions in areas of bioenergy, health and safety and operational excellence, underpinned by the recent launch of #PoyryDigital [1] . During the first half of 2017 demand in pulp and packaging has continued to be strong, and in the Hydro and Thermal businesses we were awarded several key projects, particularly in Asia. We are happy to report both an increase in order stock and a more balanced portfolio. We continue and will intensify our efforts to build connected teams and attract key talent in order to speed up our transformation towards reaching our benchmark profitability.
Financial outlook for 2017
On 15 June 2017 Pöyry expanded its guidance for adjusted operating profit in 2017. The previous guidance stated that "the Group's adjusted operating result is expected to improve." The new, expanded guidance is that "the Group's adjusted operating result for full year 2017 is expected to improve clearly." Market outlook 2017
In general uneven economic development is expected to continue in the second half of 2017. Growth expectation in the Eurozone has improved but is still fragile. Asia's development is uneven while markets relevant to us continue to be strong and offer opportunities especially to our energy services. The Middle East is showing a growing amount of opportunities but due to recent political developments the outlook continues to be uncertain. Latin America is mixed, Brazil shows modest signs of recovery while the rest of the region continues with steady development. The North American market continues to be good.
Our industry business sector shows increased demand across Europe and North America, demand in Latin America is weak and Asia is mixed within the region. Demand for our energy services continues to be strong in Asia and Latin America. The energy market in Europe is going through a market transformation resulting in reduced demand for engineering services but increased demand for consulting and market modelling. The complete January-June 2017 half year financial 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 half year financial report with tables.
PÖYRY PLC
Additional information: Juuso Pajunen, CFO Tel. +358 10 33 26632 Invitation to conference call today on 4 August 2017
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 1 August 2017.
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 0404 SE: +46 (0)8 5065 3942 UK: +44 (0)330 336 9411 US: +1 719 457 1036 Other countries: +44 (0)330 336 9411
Conference ID: 7557505
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 deliver smart solutions across power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry's net sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq Helsinki (POY1V). Approximately 5,500 experts. 40 countries. 130 offices.
[1] see press release published on 4 July 2017
Attachments:
