2013-10-30 08:00:00 CET
2013-10-30 08:01:27 CET
REGULATED INFORMATION
Outotec Oyj - Interim report (Q1 and Q3)
Outotec's Interim Report January-September 2013
OUTOTEC OYJ INTERIM REPORT OCTOBER 30, 2013 AT 9.00 AM
INTERIM REPORT JANUARY-SEPTEMBER 2013
Order intake declined in uncertain market conditions, solid profitability
Reporting period January-September 2013 in brief (2012 corresponding period):
* Order intake: EUR 1,086.3 (1,613.2) million, -33%
* Order backlog: EUR 1,735.6 (2,155.8) million, -19%
* Sales: EUR 1,454.4 (1,437.6) million, +1%
* Service sales: EUR 355.2 (291.9) million, +22%
* Operating profit from business operations(1)): EUR 122.4 (119.8) million,
+2%
* Earnings per share: EUR 0.44 (0.42), +5%
July-September 2013 in brief (2012 corresponding period):
* Order intake: EUR 229.6 (452.4) million, -49%
* Sales: EUR 440.1 (502.8) million, -12%
* Service sales: EUR 116.8 (101.7) million, +15%
* Operating profit from business operations(1)): EUR 44.1 (44.7) million, -1%
Lowered financial guidance for 2013 (published on October 17, 2013)
Outotec's sales guidance has been lowered due to several reasons. The continued
macroeconomic uncertainty has slowed down customers' capex investments. Some
projects have progressed slower than expected due to delays in customer
payments. In addition, a EUR 30 million order was cancelled in September. The
lower sales volume is the main reason for lowering the operating profit margin
guidance.
Outotec expects that in 2013:
* Sales will be approximately EUR 1.9-2.1 billion, and
* Operating profit margin from business operations(1)) will be approximately
8.5-9.5%
Previous financial guidance:
Based on the strong order backlog, current market outlook, and customer
tendering activity, the management expects that in 2013:
* Sales will be approximately EUR 2.1-2.3 billion, and
* Operating profit margin from business operations(1)) will be approximately
9.5-10.5%
(1)) Excluding one-time items and purchase price allocations (PPA) amortizations
Summary of key figures Q3 Q3 Q1-Q3 Q1-Q3 Last 12 Q1-Q4
2013 2012 2013 2012 months 2012
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Sales, EUR million 440.1 502.8 1,454.4 1,437.6 2,104.2 2,087.4
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Gross margin, % 22.5 19.3 20.8 20.3 21.1 20.8
--------------------------------------------------------------------------------
Operating profit from business
operations, EUR million 44.1 44.7 122.4 119.8 196.4 193.8
--------------------------------------------------------------------------------
Operating profit from business
operations, % 10.0 8.9 8.4 8.3 9.3 9.3
--------------------------------------------------------------------------------
Operating profit, EUR million 45.0 41.0 116.5 109.4 191.4 184.3
--------------------------------------------------------------------------------
Operating profit margin, % 10.2 8.1 8.0 7.6 9.1 8.8
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Profit before taxes, EUR million 43.1 39.6 110.9 107.4 183.1 179.7
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Net cash from operating
activities, EUR million -61.1 13.4 -39.5 80.4 -42.8 77.1
--------------------------------------------------------------------------------
Net interest-bearing debt at the
end of period, EUR million -112.4 -301.4 -112.4 -301.4 -112.4 -264.7
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Gearing at the end of period, % -23.5 -71.2 -23.5 -71.2 -23.5 -56.0
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Working capital at the end of
period, EUR million -45.4 -255.9 -45.4 -255.9 -45.4 -191.3
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Return on investment, % 29.8 34.9 27.3 31.4 34.6 37.0
--------------------------------------------------------------------------------
Return on equity, % 26.3 27.0 22.1 24.6 29.1 29.4
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Order backlog at the end of
period, EUR million 1,735.6 2,155.8 1,735.6 2,155.8 1,735.6 1,947.1
--------------------------------------------------------------------------------
Order intake, EUR million 229.6 452.4 1,086.3 1,613.2 1,557.5 2,084.4
--------------------------------------------------------------------------------
Personnel, average for the
period 4,984 4,663 4,929 4,356 4,886 4,456
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Earnings per share, EUR 0.17 0.16 0.44 0.42 0.73 0.70
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President and CEO Pertti Korhonen:"The continued uncertainty of the global economy as well as the further slowdown
of the mining industry's capex investments and cuts in opex spending resulted in
a disappointingly low order intake in the third quarter. Accumulated slowdown in
the current year's order intake started to have an impact also on our sales.
This, combined with some delayed deliveries due to customers' late payments in a
few projects and the cancellation of one order, triggered a downgrade of our
full-year sales and profit guidance.
Our service sales continued to grow and, despite lower level of total sales in
the third quarter, we maintained solid profitability. In order to secure our
future profitability in an uncertain market environment, we announced a program
to reduce our annual operational costs by up to EUR 50 million.
Going forward, we will continue to focus on growing our order intake and
ensuring a solid order backlog. Our mid- to long-term sales funnel has remained
strong and we expect to close some larger orders in the coming quarters. The
demand for services, including long-term service contracts, is expected to grow.
Mining companies have during the recent years suffered from exceeding their
investment budgets and are now seeking to reduce their investment risks and
maximize the return on assets. Although this has lead into a lower overall
capex, it opens up opportunities for Outotec as we can offer our customers best
return on investment with predictable investment cost, faster time to cash flow
and guaranteed process performance."
CHANGES IN SEGMENT REPORTING
Outotec's two new business areas are forming the IFRS 8 operating segments. The
new reporting segments are effective from this January-September Interim Report
2013.
Main changes relating to the new segment reporting are:
* In the new segment reporting one segment is in charge of the customer
delivery and thus all related sales and costs of sales are directly
allocated to that segment. Previously, the customer delivery was reported
and allocated by technology leading to several intra-group transactions
between the segments.
* Based on the new operative reporting principles, costs related to share-
based incentive programs have been allocated to the reported segments.
Previously, these items were included in unallocated costs.
Restated Q1-Q2 2013 figures were published on October 18, 2013. > Stock exchange
release
This text is a summary of Outotec's January-September 2013 Interim Report. The
full report is available as an attachment to this report.
Further information
Outotec Oyj
Pertti Korhonen, President and CEO
tel. +358 20 529 211
Mikko Puolakka, CFO
tel. +358 20 529 2002
Rita Uotila, Vice President - Investor Relations
tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname@outotec.com
BRIEFING
Date: Wednesday, October 30, 2013
Time: 2.00 pm (Finnish time)
Venue: Bank, Unioninkatu 20, Helsinki
Joining via webcast
You may follow the briefing via a live webcast at www.outotec.com. The webcast
will be recorded and published on Outotec's website for on-demand viewing.
Joining via teleconference
You may also join the briefing by telephone. To register as a participant in the
teleconference and Q&A session, please dial 5 to 10 minutes before the start of
the event:
FI: +358 9 8171 0463
SE: +46 8 5199 9356
UK: +44 20 3194 0547
US: 877 679 2993 (US only)
Contact information is gathered for registration purposes only and is not used
for commercial purposes.
FINANCIAL REPORTING SCHEDULE IN 2014
* Financial Statements Review 2013: February 7, 2014
* Interim Report for January-March: April 29, 2014
* Interim Report for January-June: July 31, 2014
* Interim Report for January-September: October 30, 2014
The Financial Statements for 2013 will be published in week 10. The Annual
General Meeting 2014 is planned for March 31, 2014.
CAPITAL MARKETS DAY 2013
Outotec's CMD 2013 will be held on December 3-4, 2013 in London. Registration
details and the agenda will be published on Outotec's web site in week 45.
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main media
www.outotec.com
Outotec provides leading technologies and services for the sustainable use of
Earth's natural resources. As the global leader in minerals and metals
processing technology, Outotec has developed over decades many breakthrough
technologies. The company also provides innovative solutions for industrial
water treatment, the utilization of alternative energy sources, and the chemical
industry. With a global network of sales and service centers, research
facilities and approximately 5,000 experts, Outotec generated annual sales of
approximately EUR 2 billion in 2012. Outotec shares are listed on NASDAQ OMX
Helsinki. www.outotec.com
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