2012-07-20 07:00:00 CEST
2012-07-20 07:00:13 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO’s interim report 2/2012 (January–June) – Performance according to plan, strategy implementation and cost reductions on schedule
April-June highlights
-- Net sales totalled EUR 456.1 (462.3) million, down by 1%. Organically, net
sales were flat.
-- Book-to-bill at 1.1. Order intake amounted to EUR 505 (600) million.
-- Operating profit (EBIT) amounted to EUR -3.7 (19.2) million, including
one-off items of EUR 31.9 million. Operating margin stood at -0.8% (4.2).
-- Operating profit excluding one-off items stood at EUR 28.2 (24.5) million,
representing an operating margin of 6.2% (5.3).
-- Profit after taxes was EUR -6.8 (11.4) million.
-- Net cash flow from operations amounted to EUR -2.5 (0.0) million.
-- Strategy implementation and personnel negotiations proceeded according to
plan.
January-June highlights
-- Net sales remained at the previous year's level at EUR 923.2 (923.9)
million.
-- Book-to-bill at 1.1. Order intake amounted to EUR 973 (1 132) million.
-- Operating profit (EBIT) amounted to EUR 38.0 (42.8) million, representing
an operating margin of 4.1% (4.6).
-- Operating profit, excluding one-off items, amounted to EUR 56.2 (48.5)
million, 6.1% (5.2) of net sales.
-- Profit after taxes was EUR 25.2 (24.9) million.
-- Net cash flow from operations amounted to EUR 66.8 (38.8) million.
Full-year outlook for 2012 unchanged
The outlook for 2012 remains unchanged. Tieto expects its net sales to develop
in line with the anticipated growth rate for the Western European IT services
market, i.e. 0-2%. Full-year operating profit (EBIT) excluding one-off items is
expected to be above the previous year's level (EUR 117.1 million in 2011).
In the second quarter, Tieto booked EUR 31.9 million in costs related to the
streamlining actions. The remaining part of the estimated total one-off costs
of EUR 50 million, close to EUR 20 million, are expected to be booked during
the second half of 2012 as announced earlier.
Q2/2012 Q2/2011 H1/2012 H1/2011
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Net sales, EUR million 456.1 462.3 923.2 923.9
Change in net sales, % -1 7 0 8
Operating profit (EBITA), EUR million -2.3 21.0 40.9 46.5
Operating margin (EBITA), % -0.5 5.0 4.4 4.9
Operating profit (EBIT), EUR million -3.7 19.2 38.0 42.8
Operating margin (EBIT), % -0.8 4.2 4.1 4.6
Operating profit (EBIT) excl. one-off items, 28.2 24.5 56.2 48.5
EUR million
Operating margin (EBIT) excl. one-off items, 6.2 5.3 6.1 5.2
%
Profit after taxes, EUR million -6.8 11.4 25.2 24.9
Net cash flow from operations, EUR million -2.5 0.0 66.8 38.8
EPS, EUR -0.10 0.16 0.35 0.35
Return on equity, 12-month rolling, % 11.2 9.6 11.2 9.6
Return on capital employed, 12-month rolling, 17.4 14.9 17.4 14.9
%
Investments, EUR million 13.6 13.3 28.0 78.6
Interest-bearing net debt, EUR million 80.0 136.4 80.0 136.4
Gearing, % 14.7 25.8 14.7 25.8
Net debt/EBITDA 0.5 0.9 0.5 0.9
Personnel on 30 June 17 723 18 071 17 723 18 071
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Comment regarding the interim report by Kimmo Alkio, President and CEO:
“During the second quarter, we focused on the implementation of a competitive
cost structure and profitability improvement as essential elements in our
strategy. The first steps in achieving a competitive cost structure have been
concluded as planned and second-quarter profitability was in line with our
expectations.
On a day-by-day basis, quality assurance has been elevated as the number one
priority across our management teams. During the second quarter, we concluded
several important customer agreements and our book-to-bill was at a healthy
level. I also want to thank our employees for keeping a high degree of
attention on customer priorities at a time when we have carried out substantial
redundancies in the company.
I am pleased to see that our current development is consistent with our
objectives. This gives us a good base for longer-term strategy implementation.
During the second half, we will continue to focus on our operational objectives
and prepare ourselves for the gradual implementation of the new operating model
effective as from the beginning of 2013.”
FINANCIAL PERFORMANCE IN APRIL-JUNE
Financial performance by market unit
Net Net sales Q2/2011, Change, Operating margin Operating margin
sales EUR million % Q2/2012, % Q2/2011,
Q2/201 %
2,
EUR
millio
n
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Finla 190 178 7 4.2 2.4
nd
and
the
Balt
ic
coun
tries
Scand 135 140 -4 -1.9 3.7
inavi
a
Centr 31 33 -6 -31.1 -17.1
al
Euro
pe &
;
Russ
ia
Globa 170 193 -12 3.0 9.6
l
Acco
unts
Group -69 -80
elim
inati
on
Total 456 462 -1 -0.8 4.2
--------------------------------------------------------------------------------
Operating profit excluding one-off items by market unit
Operati Operating profit Operating margin Operating margin
ng excl. one-off items excl. one-off items excl. one-off items
profit Q2/2011, Q2/2012, Q2/2011,
excl. EUR million % %
one-off
items
Q2/2012
,
EUR
million
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Finla 15.6 4.1 8.2 2.3
nd
and
the
Balt
ic
coun
tries
Scand 7.7 9.2 5.7 6.6
inavi
a
Centr -3.7 -5.4 -11.9 -16.5
al
Euro
pe &
;
Russ
ia
Globa 9.8 18.5 5.7 9.6
l
Acco
unts
Steer -1.3 -2.1
ing
Func
tions
and
Grou
p
Manag
ement
Total 28.2 24.5 6.2 5.3
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For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen
(at) tieto.com
Pellervo Hämäläinen, Vice President, Communications and IR, tel. +358 2072
52729, +358 40 6745257, pellervo.hamalainen(at)tieto.com
Tanja Lounevirta, Head of Financial Communications, tel. +358 2072 71725, +358
50 321 7510, tanja.lounevirta (at) tieto.com
Press conference for analysts and media will be held at Tieto's premises in
Helsinki (address: Aku Korhosen tie 2‑6) at 9.30 pm EET (8.30 pm CET, 7.30 pm
UK time). The results will be presented in English by Kimmo Alkio, President
and CEO.
The conference will be webcasted and published live on Tieto's website
www.tieto.com and there will be a possibility to present questions online. An
on-demand video will be available after the conference.
Tieto publishes financial information in English, Finnish and Swedish. All
releases are posted in full on Tieto's website as soon as they are published.
TIETO CORPORATION
DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media
Tieto is the leading IT service company in Northern Europe providing IT and
product engineering services. Our highly specialized IT solutions and services
complemented by a strong technology platform create tangible business benefits
for our local and global customers. As a trusted transformation partner, we are
close to our customers and understand their unique needs. With about 18 000
experts, we aim to become a leading service integrator creating the best
service experience in IT, www.tieto.com
Tieto Corporation
Business ID: 0101138-5
Aku Korhosen tie 2−6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Fax +358 2072 68898
Registered office: Helsinki
E-mail: info@tieto.com
www.tieto.com
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