Pöyry - Interim report (Q1 and Q3)

Pöyry Oyj : Intermin Report 1 January - 30 September 2012

PÖYRY PLC          Interim Report 26 October 2012 at 8:30 a.m.

FY 2012 RESULT FALLS SHORT OF EXPECTATIONS - FOCUS ON IMPROVING PROFITABILTIY

KEY FIGURES
                                  | 7-9/| 7-9/|Change,| 1-9/| 1-9/|Change,|1-12/
Pöyry Group                       | 2012| 2011|      %| 2012| 2011|      %| 2011
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Order stock at end of period, EUR |     |     |       |     |     |       |
million                           |595.1|724.4|  -17.8|595.1|724.4|  -17.8|694.4
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Net sales total, EUR million      |176.0|193.9|   -9.2|584.3|569.2|    2.7|796.1
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating profit excl.            |     |     |       |     |     |       |
restructuring costs,              |     |     |       |     |     |       |
EUR million                       |  3.0|  8.5|  -64.7| 10.5| 24.0|  -56.3| 30.4
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating margin excluding        |     |     |       |     |     |       |
restructuring costs, %            |  1.7|  4.4|       |  1.8|  4.2|       |  3.8
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating profit,                 |     |     |       |     |     |       |
EUR million                       | -1.2|  6.9|   n.a.| -2.8| 20.5|   n.a.| 20.0
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating margin, %               | -0.7|  3.6|       | -0.5|  3.6|       |  2.5
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Profit before taxes,              |     |     |       |     |     |       |
EUR million                       | -2.3|  6.1|   n.a.| -4.5| 17.9|   n.a.| 17.1
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Earnings per share, basic, EUR    |-0.04| 0.05|   n.a.|-0.15| 0.16|   n.a.| 0.13
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Earnings per share, diluted, EUR  |-0.04| 0.05|   n.a.|-0.15| 0.16|   n.a.| 0.13
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Gearing, %                        |     |     |       | 61.2| 37.8|       | 28.2
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Return on investment,  % (R12M)   |     |     |       | -0.3|  9.8|       |  7.4
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Average number of personnel during|     |     |       |     |     |       |
period, calculated as full time   |     |     |       |     |     |       |
equivalents (FTE)                 |     |     |       |6,762|6,815|   -0.8|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-SEPTEMBER 2012 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.

- Pöyry reduced further its estimate for the full year 2012 operating profit on
18 October 2012. The Group's operating profit for 2012, excluding restructuring
costs, is expected to decline significantly compared with 2011. In the outlook
given in connection with the January - June 2012 result the Group's operating
profit was expected to decline from 2011. The Group's net sales outlook is
unchanged and net sales in 2012 are expected to remain stable compared with
2011.
- The Group's order stock totalled EUR 595.1 million (724.4) at the end of the
reporting period.
- Consolidated net sales increased by 2.7 per cent compared with the year before
to EUR 584.3 million (569.2).
- Operating profit excluding restructuring costs was EUR 10.5 million (24.0)
corresponding to 1.8 per cent (4.2) of sales.
- Operating profit improved in the Industry business group but was lower than
the year before in all other business groups.
- Restructuring costs in the reporting period totalled EUR 13.3 million of which
EUR 7.2 million were recognised in the first quarter of 2012.
- Unallocated costs in January-September 2012 were EUR 16.8 million which
includes EUR 12.0 million restructuring costs.
- The accounts receivable include items, which relate to certain public sector
infrastructure projects in Venezuela, where the client is a public authority.
These have been described in the report of the Board of Directors for 2011 and
there have not been material changes during 2012. The current net value of the
receivables is EUR 23.3 million.
- Alexis Fries started as President and CEO on 1 September 2012.

OUTLOOK FOR 2012
Pöyry reduced further its estimate for the full year 2012 operating profit on
18 October 2012. The Group's operating profit for 2012, excluding restructuring
costs, is expected to decline significantly compared with 2011. In the outlook
given in connection with the January - June 2012 result the Group's operating
profit was expected to decline from 2011. The Group's net sales outlook is
unchanged and net sales in 2012 are expected to remain stable compared with
2011.

As announced before Pöyry pursues actions to improve profitability. These
actions include efficiency improvements and streamlining internal processes and
support functions as well as low-performing units. This will result in
restructuring costs which will be recorded in 2012. More detailed information on
estimated financial impacts will be available later this year.

Updated outlook concerning business groups:
Net sales are expected to remain stable in all business groups.

Operating profit in the Energy and Management business groups is expected to
decline significantly. Operating profit in the Industry business group is
expected to decline. Operating profit in the Urban business group is expected to
improve significantly considering the low comparison figure.

PREVIOUS OUTLOOK FOR 2012 AS OF 27 JULY 2012
The Group's net sales in 2012 are expected to remain stable compared with 2011.
The Group's operating profit for 2012, excluding restructuring costs, is
expected to decline compared with 2011.

Outlook concerning business groups:
Net sales are expected to remain stable in all business groups.

Operating profit in the Energy business group is expected to decline and in the
Management Consulting business group to decline clearly. Operating profit in the
Industry business group is expected to improve. Operating profit in the Urban
business group is expected to improve significantly considering the low
comparison figure.

The operating profit outlook and comparison to 2011 both refer to figures
excluding restructuring costs..

COMMENTS FROM ALEXIS FRIES, PRESIDENT AND CEO:"Group's January-September operating profit of EUR 10.5 million or 1.8 per cent
of net sales before restructuring costs remained unsatisfactory. Group's order
stock value was EUR 595 million at the end of the reporting period. Net sales
were stable compared with the previous year and totalled EUR 584 million.

Increasing economic uncertainty has impacted clients' investment activity which
is also reflected in our order intake. In the Energy business group, the order
intake was supported by strong first quarter and order intake to-date remained
on the same level as in the year before. The Industry business group has not
booked any larger orders in 2012 whereas the comparison figure includes major
projects received in 2011. In the Urban business group, divestments and reduced
activity in the non-core markets, as part of the strategic review of the
business portfolio, were also visible in declining order intake. Order intake in
the Management Consulting business group declined reflecting the challenging
business environment.

Due to unsatisfactory results especially in the second and third quarters, the
operating profit excluding restructuring costs for January -September 2012 is
clearly lower than expected.  As announced before we will pursue actions to
improve profitability. These actions include efficiency improvements and
streamlining internal processes and support functions as well as low-performing
units. This will result in restructuring costs which will be recorded in 2012.
More detailed information on estimated financial impacts will be available later
this year."

This is a summary of the January-September 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:
Jukka Pahta, CFO
tel. +358 10 33 26088
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002

INVITATION TO CONFERENCES TODAY 26 OCTOBER 2012
The January-September 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.
The event will be hosted by Alexis Fries, President and CEO and Jukka Pahta,
CFO.

- 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)
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 next working 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 innovation, quality and integrity
at our core, we deliver best-in-class strategic advisory, engineering, project
implementation and operations support services. Our in-depth expertise extends
to the fields of energy, forest industry, chemicals & biorefining, mining &
metals, transportation, water and real estate. Pöyry has about 7,000 experts and
an extensive local office network. 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#1652494]

Attachments:

ENG_Interim_Report_Q3_2012.pdf