Pöyry Oyj: Interim report 1 January - 30 June 2014
PÖYRY PLC Interim Report 31 July 2014 at 8:30 a.m.
NET SALES AND COMPARABLE OPERATING PROFIT DECLINED
4-6/2014 4-6/2013 Change,
Pöyry Group % 1-6/2014 1-6/2013 Change,% 1-12/2013
Order stock at
end of period,
EUR million 482.4 555.7 -13.2 482.4 555.7 -13.2 500.0
million 152.2 170.2 -10.6 303.5 336.5 -9.8 650.8
million -2.9 1.9 n.a. -4.7 5.0 n.a. 13.9
margin, % -1.9 1.1 -1.6 1.5 2.1
million -3.0 0.5 n.a. -6.0 2.7 n.a. 9.1
EUR -0.06 -0.01 n.a. -0.12 0.00 n.a. 0.06
EUR -0.06 -0.01 n.a. -0.12 0.00 n.a. 0.06
Gearing, % 34.1 89.3 26.0
(R12M) -3.3 4.1 5.8
(FTE) 5,659 6,235 -9.2 6,128
All figures and sums have been rounded off from the exact figures, which may
lead to minor discrepancies upon addition or subtraction.
JANUARY - JUNE 2014 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period of the
- On 2 June 2014, Pöyry closed the divestment in Finland that included
significant parts of Pöyry's real estate design and consulting business as
well as construction management business for real estate and infrastructure.
- The Group's order stock totalled EUR 482.4 (555.7) million. It increased in
the Industry Business Group but contracted in all other Business Lines.
Excluding the divestment in Finland in June, comparable order stock increased
from EUR 461.4 at the end of the previous year. Comparable order stock on 30
June 2013 was EUR 512.5 million.
- Net sales declined to EUR 303.5 (336.5) million mostly due to the
performance in the Regional Operations.
- Operating profit decreased to EUR -4.7 (5.0) million. Operating profit was
burdened by lower than expected net sales as well as EUR -5.4 million of
project losses and other one-time items recognised mainly in the Regional
Operations. Operating profit includes a one-time gain of EUR 19 million from
the divestment in Finland as well as EUR -14 million loss resulting from the
write-off of the receivables from Venezuela. Operating profit increased in the
Management Consulting Business Group, however it declined in all other
Business Lines and mostly in the Regional Operations except for the Northern
- In line with its strategic evolution introduced in February 2013, Pöyry
integrated its local activities in Latin and North America as well as in Asia
Pacific to Regional Operations in January 2014.
- Pöyry continues to implement its structural and administrative process
improvement program announced at the end of 2012. As these measures are
progressing, Pöyry will introduce further improvements in terms of sales
focus, project management and capacity management.
OUTLOOK FOR 2014
Due to the write-off of the receivables in Venezuela, Pöyry has on 31 July
2014 lowered its guidance for the operating profit for 2014. According to the
guidance announced on 5 February 2014, the Group operating profit in 2014 was
expected to increase. According to the new guidance, the Group's operating
profit in 2014 is expected to decline compared to the operating profit for
ALEXIS FRIES, PRESIDENT AND CEO:
"Pöyry's net sales declined in the first half of the year to EUR 303.5 (336.5)
million. Sales weakened mostly in the Regional Operations which were impacted
by clients' lower investment activity and project delays in Europe and Latin
America. Operating profit declined to EUR -4.7 (5.0) million. The figure
includes EUR -5.4 million of project losses and other one-time items as well
as profit of EUR 19 million originating from the divestment in Finland.
Operating profit was additionally impacted by the write-off of overdue
receivables related to projects from the former Urban Business Group in
Venezuela, amounting to EUR 14 million. Pöyry continues to pursue the
collection process. Operating profit improved in the Management Consulting
Business Group. While Northern Europe developed satisfactorily, the overall
performance of the Regional Operations was disappointing and had a negative
impact on the figure.
The Group's order prospects were solid, however the progression of larger
project opportunities was taking clearly longer. The Group's overall order
intake decreased in the Energy Business Group, Central Europe and Latin
America. Nevertheless, orders increased in all other Business Lines. The
Group's order stock improved in most Business Lines, amounting to EUR 482.4
million and improving from EUR 461.4 million at the end of 2013. However, the
year-on-year figure decreased from EUR 555.7 million (or EUR 512.5 million
excluding the divestment in Finland). The decrease affected all Business Lines
with the exception of the Industry Business Group.
The Group's unallocated costs increased in line with expectations due to
advancing centralisation of the global support functions, a process where
considerable cost savings have been achieved.
As communicated earlier, Pöyry strengthened its regional focus in January 2014
by integrating its local activities in Latin and North America, as well as in
Asia Pacific, into the Regional Operations. This is in line with Pöyry's
strategy to grow its services in key domestic markets.
After a difficult start in a weakening market at the beginning of this year,
the Regional Operations in Northern Europe recovered well and showed positive
development. In other regions, however, where lower sales resulted in unsold
engineering hours and losses were recorded in projects originating from the
former Urban Business Group, performance was not satisfactory. Latin America
was impacted by litigation costs related to an arbitration process and a
delayed start-up of a major client project.
Improvements in terms of sales focus, project management and capacity
management have been initiated across all units and are closely monitored as
part of our regular management process.
We continue to progress with Pöyry's organisational evolution, introduced in
February 2013. It is based on Management Consulting, Global Business Lines
focusing on Energy and Industry as well as development of strong Regional
Operations around key countries where we offer engineering services to
industry and infrastructure clients locally through our office network. The
related organisational adjustments have proceeded according to plan.
The divestment in Finland was closed on 2 June 2014, allowing us now to
sharpen our focus on the industry and local infrastructure markets in Northern
This is a summary of the January-June 2014 Interim report. The complete report
is published as an enclosure to this company announcement and is available in
full on the company's website at www.poyry.com. Investors are advised to
review the complete financial statement release with tables.
Jukka Pahta, CFO
tel. +358 10 33 22629
INVITATION TO CONFERENCES TODAY 31 JULY 2014
Pöyry's January-June 2014 result will be presented at the following news
- A conference for analysts, investors and press will be arranged at 12:00
p.m. Finnish time at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland.
The event will be hosted by Alexis Fries, President and CEO and Jukka Pahta,
- An international conference call and webcast in English will begin at 5:00
p.m. Finnish time (EEST). The event will be hosted by Jukka Pahta, CFO.
10:00 a.m. US EDT (New York)
3:00 p.m. BST (London)
4:00 p.m. CEST (Paris)
The webcast may be followed online on the company's website www.poyry.com. A
recording will be made available on the next working day on the same website.
To attend the conference call, please dial:
FI: +358 (0)9 8171 0465
SE: +46 (0)8 5199 9355
UK: +44 (0)20 3194 0550
US: +1855269 2605
Other countries: +44 (0)20 3194 0550
Due to the nature of the live webcast, we kindly ask those attending the
international conference call and webcast to dial in 5 minutes prior to the
start of the event.
Pöyry is an international consulting and engineering company. We serve clients
globally across the energy and industrial sectors and locally in our core
markets. We deliver strategic advisory and engineering services, underpinned
by strong project implementation capability and expertise. Our focus sectors
are power generation, transmission & distribution, forest industry, chemicals
& biorefining, mining & metals, transportation and water. Pöyry has an
extensive local office network employing about 6,000 experts. Pöyry's net
sales in 2013 were EUR 650 million and the company's shares are quoted on
NASDAQ OMX Helsinki (Pöyry PLC: POY1V).
NASDAQ OMX Helsinki
Interim Report 1 January - 30 June 2014
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Pöyry Oyj via Globenewswire
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