Helsinki, Finland, 2013-09-11 14:00 CEST (GLOBE NEWSWIRE) -- YIT CORPORATION STOCK EXCHANGE RELEASE SEPTEMBER 11, 2013 at 3:00 p.m.
YIT LOWERS ITS GUIDANCE REGARDING THE 2013 REVENUE AND OPERATING PROFIT
YIT lowers its guidance on the 2013 revenue and operating profit. YIT now estimates that the revenue and operating profit based on the Group's segment reporting for 2013 will decrease from the level of 2012, excluding non-recurring items. In its guidance issued on June 4, 2013, YIT estimated the revenue and operating profit of the Group’s continuing operations based on segment reporting for 2013 to remain at the level of 2012, excluding non-recurring items.
PREVIOUS GUIDANCE: Revenue and operating profit to remain at the previous year's level, excluding non-recurring items
NEW GUIDANCE: Revenue and operating profit to decrease from the previous year's level, excluding non-recurring items
During the summer, macroeconomic uncertainty has been reflected in the operations and decision-making of YIT and its customers. In Finland, sales of apartments has risen to the normal level at the beginning of autumn, but sales of detached and terraced houses have remained at a low level compared to YIT´s supply. As a result, the estimate for residential sales in Finland has been lowered for the rest of the year.
In Russia, residential sales have remained fairly brisk in all YIT units, but the more conservative economic forecasts and the increased supply of apartments in some of YIT's operating cities have not allowed price increases of apartments as planned. The prices of apartments are expected to remain stable in all of YIT's market areas during the remainder of the year.
During the summer and autumn, YIT has successfully implemented its strategy confirmed in spring. The selection of YIT as the developer of Central Pasila, together with projects worth a total of one billion euros, offer significant business volume in Finland starting from 2015. The positive progress in the zoning of the Smolniy and Novo Orlovski projects in St. Petersburg, Russia, will allow YIT to start construction in these long-term projects, worth nearly 1.5 billion euros, during this autumn and winter. YIT also targets to launch its first residential construction project in Tyumen, Russia, during the fall. In Finnish residential construction, YIT puts additional focus on investor deals in addition to consumers. YIT will continue to release capital from slow-moving assets.
Increasing uncertainty over the general macroeconomic development continues to impact YIT’s business operations and customers.
YIT CORPORATION
Kari Kauniskangas
President and CEO
For further information, please contact:
Timo Lehtinen, Chief Financial Officer, YIT Corporation, tel. +358 45 670 0626, timo.lehtinen@yit.fi
Sanna Kaje, Vice President, Investor Relations, YIT Corporation, tel. +358 50 390 6750, sanna.kaje@yit.fi
Distribution: NASDAQ OMX Helsinki, principal media, www.yitgroup.com
YIT leads the way in the construction sector by creating more attractive and sustainable urban environments in Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. YIT builds housing, business premises and infrastructure, develops entire areas, and offers residential service concepts for consumers. YIT has over 100 years of experience and a strong market position: it is the largest residential construction company in Finland and the most significant foreign residential construction company in Russia. YIT is also one of the largest business premises and infrastructure construction companies in Finland. YIT has more than 6,000 employees in seven countries. In 2012, the company’s revenue was approximately EUR 2.0 billion. YIT’s shares are listed on NASDAQ OMX Helsinki. www.yitgroup.com
