2011-10-26 09:00:00 CEST
2011-10-26 09:00:06 CEST
REGULATED INFORMATION
Itella Oyj - Interim report (Q1 and Q3)
Itella Interim Report for January-September 2011
ITELLA CORPORATION STOCK EXCHANGE RELEASE October 26, 2011, AT 10:00 A.M.
July-September 2011
-- Itella Group's net sales grew by 5% in July-September and totaled EUR 449.4
million (EUR 428.1 million in July-September 2010).
-- Net sales increased in all business groups.
-- The Group recorded an operating loss of EUR 21.5 million (operating profit
of EUR 4.4 million), representing -4.8% (1.0%) of net sales. The operating
result was weighed down by non-recurring expenses amounting to EUR 32.3
million (EUR 1.6 million), of which restructuring costs expenses related to
the cost-cutting program initiated by the Group in August accounted for EUR
15.7 million and goodwill impairment for EUR 16.6 million.
-- Itella Group's operating result, excluding non-recurring items, grew from
the previous year and totaled EUR 10.7 million (EUR 6.0 million).
-- The operating result excluding non-recurring items of Itella Mail
Communications fell to EUR 7.4 million (EUR 9.7 million) and of Itella
Information to EUR 0.1 million (EUR 3.1 million). Itella Logistics'
operating result excluding non-recurring items turned profitable, and
amounted to EUR 3.7 million (EUR -3.0 million).
-- Due to the downturn in performance trends Itella introduced a three-year
EUR 100 million cost-cutting program in August.
-- On August 31, 2011, Itella's subsidiary Itella Bank Ltd was granted a
deposit bank authorization pursuant to the Credit Institutions Act.
January-September 2011
-- Itella Group recorded net sales of EUR 1,382.0 million in January-September
(EUR 1,332.7 million in January-September 2010).
International operations accounted for 33% (32%) of net sales.
-- The Group operating loss was of EUR 25.0 million (operating profit of EUR
16.5 million), representing -1.8% (1.2%) of net sales.
-- The operating loss includes non-recurring expenses of EUR 32.6 million (EUR
15.5 million).
-- Itella Mail Communications net sales remained stable, while profitability
clearly declined.
-- Itella Information's net sales increased slightly, but profitability
declined.
-- Itella Logistics clearly increased its net sales but operating result
remained negative. Operating loss excluding non-recurring items, however,
decreased compared to the previous year.
-- The Finnish Parliament approved the new Postal Act, which entered into
force on June 1, 2011. Itella's subsidiary Itella Posti Oy has the license
for universal service.
Itella key figures 1-9 1-9 2010
2011 2010
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Net sales, EUR million 1,382.0 1,332.7 1,841.6
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Operating result (EBIT), EUR million -25.0 16.5 38.1
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Operating result (EBIT) percentage -1.8 1.2 2.1
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Operating result (EBIT), EUR million*) 7.6 31.9 55.4
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Operating result (EBIT) percentage*) 0.6 2.4 3.0
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Result before income tax, EUR million**) -32.4 14.0 31.0
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Return on equity, %, 12 months -4.4 1.2 1.4
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Return on investment, %, 12 months -0.6 5.1 4.2
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Equity ratio, % 47.3 49.7 50.5
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Gearing, % 31.0 26.0 18.4
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Gross investments, EUR million 66.9 64.0 81.9
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Personnel on average 28,711 29,009 28,916
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Dividend, EUR million 4.4
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*) Excluding non-recurring items
**) Continuing operations
Jukka Alho, President and CEO:
”The concrete steps aiming to adapt Itella's operations to the changes
affecting its business environment began in the early autumn. August saw us
announcing the need to boost our efficiency with EUR 100 million. In relation
to this, we commenced personnel adaptation measures concerning a total of more
than 900 man-years. The purpose of the increase in efficiency is to ensure that
we will continue to maintain an adequate level of service nationally.
The realization of these plans has run parallel to the increasingly strong
signs present in the entire European economy of a probable new recession.
Meanwhile, factors such as a value added tax to be levied on the print media -
which could also have a considerable impact on jobs at Itella - remain as part
of the planning.
In terms of Itella's business operations, the most positive trend is evident in
Logistics, the operative business of which was profitable during the third
quarter. Particular improvement is also evident in both domestic and Russian
warehouse fill rates and profitability. The central aspects in the Information
business area are the integration of operations and the related growth outlook
following the OpusCapita acquistion in June.
Regarding domestic postal services, development has remained weak, with the
exception of the domestic parcel business. We are in the midst of a significant
structural change concerning postal operations with a global reach, and this is
occurring simultaneously in most developed countries. In Finland, the decline
in the volumes of the print media has been considerable.
It is becoming increasingly clear and unavoidable that we are in a situation
where citizens find changes to the accustomed service infrastructure unwelcome
but, on the other hand, the service is not considered crucial enough for there
to be a willingness to pay for its full costs. From a broader perspective, the
state of society at large seems similar: five-day postal delivery, for example,
is considered important, but not important enough to prompt a great amount of
eagerness to direct already scarce tax revenue to it. This creates a challenge;
tackling it requires vision and courage. I believe that in the next few years
we will see the beginning of a renewed Europe-wide dialog in which the demand
for traditional postal services will be reconciled with the other models of
solution offered by the information society. When the time comes, we must
decide on the level of service that must truly be available everywhere - even
in places where increased competition does not generate adequate services.”
APPENDICES
Itella's full Interim Report
FURTHER INFORMATION
Sari Helander, CFO, tel. +358 (0)20 4520 907, sari.helander@itella.com
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
http://www.itella.fi/group/english/financials/
FINANCIAL CALENDER 2012
Financial Statements Bulletin 2011 to be released on February 17, 2012
PHOTOGRAPS AND LOGOS
www.itella.fi/media
Itella Group provides solutions for managing information and product flows.
Itella operates in the fields of mail Communications, information logistics,
and logistics in Europe and Russia. Net sales in 2010 amounted to EUR 1,842
million. The number of staff is about 28,000. Corporate services are delivered
under the Itella brand, while the Posti brand is used for services targeted at
consumers in Finland. More information is available online at
www.itella.fi/group/english.
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