Pöyry - Interim report (Q1 and Q3)

Pöyry Oyj : Interim Report 1 January - 31 March 2012

PÖYRY PLC          Interim Report 25 April 2012 at 8:30 a.m.

SLOW START FOR 2012 - OUTLOOK UNCHANGED

KEY FIGURES
                                                      | 1-3/| 1-3/|Change,|1-12/
Pöyry Group                                           | 2012| 2011|      %| 2011
------------------------------------------------------+-----+-----+-------+-----
Order stock at end of period, EUR million             |696.9|716.7|   -2.8|694.4
------------------------------------------------------+-----+-----+-------+-----
Net sales total, EUR million                          |209.5|180.0|   16.4|796.1
------------------------------------------------------+-----+-----+-------+-----
Operating profit excl.                                |     |     |       |
restructuring costs,                                  |     |     |       |
EUR million                                           |  6.2|  6.5|   -6.2| 30.4
------------------------------------------------------+-----+-----+-------+-----
Operating margin excluding                            |     |     |       |
restructuring costs, %                                |  3.0|  3.6|       |  3.8
------------------------------------------------------+-----+-----+-------+-----
Operating profit,                                     |     |     |       |
EUR million                                           | -1.0|  6.4|   n.a.| 20.0
------------------------------------------------------+-----+-----+-------+-----
Operating margin, %                                   | -0.6|  3.5|       |  2.5
------------------------------------------------------+-----+-----+-------+-----
Profit before taxes,                                  |     |     |       |
EUR million                                           | -1.4|  4.8|   n.a.| 17.1
------------------------------------------------------+-----+-----+-------+-----
Earnings per share, basic, EUR                        |-0.07| 0.04|   n.a.| 0.13
------------------------------------------------------+-----+-----+-------+-----
Earnings per share, diluted, EUR                      |-0.07| 0.04|   n.a.| 0.13
------------------------------------------------------+-----+-----+-------+-----
Gearing, %                                            | 42.2| -0.3|   n.a.| 28.2
------------------------------------------------------+-----+-----+-------+-----
Return on investment,  % (R12M)                       |  0.1|  9.2|   n.a.|  7.4
------------------------------------------------------+-----+-----+-------+-----
Average number of personnel during period, calculated |     |     |       |
as full time equivalents (FTE)                        |6,827|6,659|    2.5|6,864


All figures and sums have  been  rounded  off  from  the  exact  figures  which
 may  lead  to  minor  discrepancies  upon  addition or subtraction.

JANUARY-MARCH 2012 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.

- The Group's order stock totalled EUR 696.9 million (716.7) at the end of the
first quarter 2012. The end of the quarter EPC-order stock has been corrected
downwards by EUR 15.7 million. The correction relates to an agreement made with
MWV Rigesa where the client is purchasing part of the equipment directly by
itself according to plan made by Pöyry. Only the service fee related to these
deliveries will be recognised as income.
- Consolidated net sales increased by 16.4 per cent compared with the year
before to EUR 209.5 million (180.0).
- Operating profit excluding restructuring costs was EUR 6.2 million (6.5)
corresponding to 3.0 per cent (3.6) of sales.
- Compared with the year before, the operating profit improved significantly in
the Industry business group and was also higher in the Urban business group.
Operating profit declined in the Energy and Management Consulting business
groups.
- Unallocated costs in the first quarter of 2012 were EUR 9.1 million. This
includes EUR 6.6 million restructuring costs of which majority relates to the
divestment of parts of the international water and environment operations. Of
the remaining EUR 2.5 million EUR 1.1 million relates to unrealised exchange
rate losses of the receivable in Venezuela.
- The accounts receivable include receivables, which relate to certain public
sector infrastructure projects in Venezuela, where the client is a public
authority. The receivables have been described in the report of the Board of
Directors for 2011 and there have not been material changes during the first
quarter of 2012. The current net value of the receivable is EUR 23.3 million.
- Parts of the international water & environment businesses were divested in
March 2012.
- The new business group structure became effective as of 1 Jan 2012.

OUTLOOK FOR 2012
The Group outlook remains unchanged.

Pöyry's businesses are predominantly driven by clients' new capital investments
and most of the businesses are also inherently late in the cycle. It is
difficult to predict the timing of clients' new investment decisions and project
start-ups. The uncertainty around the general economic outlook is high, which
may also impact investment activity in business segments that are relevant to
Pöyry's operations.

Based on the current strong order stock and outlook for new orders, the Group's
net sales in 2012 are expected to remain stable compared with 2011. The
comparable operating profit for 2012 is expected to improve clearly from the
operating profit, excluding restructuring costs, in 2011.

Updated outlook concerning business groups:
The net sales outlook in the Energy and Urban business groups remains unchanged.
Net sales in the Industry business group is expected to improve clearly and in
the Management Consulting business group to remain stable compared with 2011.

The operating profit outlook in the Urban and Management Consulting business
groups remains unchanged. Comparable operating profit in the Energy business
group is expected to remain stable and in the Industry business group to improve
clearly compared with 2011.

Outlook concerning business groups from the Financial Statement Release on 9
February 2012:
The net sales in the Industry and Management Consulting business groups are
expected to improve and in the Energy and Urban business groups to remain stable
compared with 2011. Comparable operating profit in the Energy business group is
expected to improve clearly, in the Industry business group to improve, in the
Urban business group to improve significantly and in the Management Consulting
business group to remain stable compared with 2011.

COMMENTS FROM HEIKKI MALINEN, PRESIDENT AND CEO:"The Group order stock remained at a good level of EUR 696.9 million. Order
stock value declined clearly in the Industry business group where the large
projects received in 2011 are now in the implementation phase. On the other
hand, order stock value increased in the Energy business group where order
intake was good especially in Central Europe, Middle-East and North America. Net
sales increased by 16.4 per cent to EUR 209.5 million. Operating profit before
restructuring costs was EUR 6.2 million (6.5) or 3.0 per cent (3.6) of net
sales.

Compared with the year before, operating profit improved significantly in the
Industry business group reflecting the progress of the large project in Latin
America. The implementation of the projects is moving ahead as planned and due
to the nature of some of the contracts the main profit recognition is expected
to occur towards the latter part of the year. I am also pleased to report that
Pöyry was recently awarded basic engineering and detail engineering contracts
for site infrastructure for Klabin's new pulp mill in Brazil. The capacity of
the new state-of-the-art pulp mill is 1.5 million tonnes per annum and the
start-up of the mill is planned for the third quarter of 2014. The final
investment decision is expected later this year. Overall, the Industry business
group has achieved a good turnaround after a tough 2009-2010. Operating profit
also improved slightly in the new Urban business group where restructuring of
the business and development of the portfolio remained a priority.

Operating profit in the Energy business group was a disappointment reflecting
the on-going transition, lower than expected activity due to demand driven
issues in certain weak markets and some challenging projects. Actions continue
to be taken to adapt capacity to the work-load as necessary. The high order
stock at the end of the quarter is a solid foundation when looking forward to
the latter part of the year. After a good turn-around in the Management
Consulting business group in 2011 the first quarter of 2012 was disappointingly
weak. Positively, performance in the European main markets was quite stable
compared to the year before despite the increased economic uncertainty which
typically impacts management consulting business quickly. To react to changes in
client needs, investments are made to broaden the scope of our consulting
offering.

At the Group level we continue with operational excellence programme and our
group wide growth enabling initiatives - Large Projects, Sales & Marketing, Way
of Working and Thought Leadership - with the aim to streamline our operations
and office network, improve core processes as well as invest in competence
development."

This is a summary of the January-March 2012 interim report. The complete report
is published as an enclosure to this company announcement and is available in
full on the company's web site at www.poyry.com. Investors are advised to review
the complete financial statement release with tables.

PÖYRY PLC

Additional information from:
Heikki Malinen, President and CEO
tel. +358 10 33 21307
Jukka Pahta, CFO
tel. +358 10 33 26088
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002

INVITATION TO CONFERENCES TODAY 25 APRIL 2012
The January-March 2012 result will be presented at the news conferences today as
follows:

- A conference for analysts, investors and press in Finnish will be arranged at
12 p.m. Finnish time at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland.

- An international conference call and webcast in English will begin at 5:00
p.m. Finnish time (EEST).

10:00 a.m. US EDT (New York)
3:00 p.m. BST (London)
4:00 p.m. CEST (Paris)
5:00 p.m. EEST (Helsinki)

The webcast may be followed online on the company's website www.poyry.com. A
replay can be viewed on the same site the following day.

To attend the conference call, please dial

Finland: 0800 914672
UK: 0808 109 0700
USA: 1 866 966 5335
Other countries: +44 (0)20 3003 2666
Conference id: Pöyry

Due to 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 a global consulting and engineering company dedicated to balanced
sustainability and responsible business. With quality and integrity at our core,
we deliver best-in-class management consulting, total solutions, and design and
supervision. Our in-depth expertise extends to the fields of energy, industry,
transportation, water, environment and real estate. Pöyry has about 7,000
experts and the local office network in about 50 countries. Pöyry's net sales in
2011 were EUR 796 million and the company's shares are quoted on NASDAQ OMX
Helsinki. (Pöyry PLC: POY1V).

DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.poyry.com

[HUG#1605578]

Attachments:

ENG_Interim_Report_Q1_2012.pdf