Pöyry - Interim report (Q1 and Q3)

Pöyry Oyj : Interim Report 1 January - 30 June 2012

PÖYRY PLC          Interim Report 27 July 2012 at 8:30 a.m.

DISAPPOINTING SECOND QUARTER - 2012 OPERATING PROFIT ESTIMATE REDUCED FURTHER

KEY FIGURES
                                  | 4-6/| 4-6/|Change,| 1-6/| 1-6/|Change,|1-12/
Pöyry Group                       | 2012| 2011|      %| 2012| 2011|      %| 2011
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Order stock at end of period, EUR |     |     |       |     |     |       |
million                           |644.1|742.1|  -13.2|644.1|742.1|  -13.2|694.4
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Net sales total, EUR million      |198.8|195.3|    1.8|408.3|375.3|    8.8|796.1
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating profit excl.            |     |     |       |     |     |       |
restructuring costs,              |     |     |       |     |     |       |
EUR million                       |  1.3|  9.0|  -85.6|  7.5| 15.5|  -51.6| 30.4
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating margin excluding        |     |     |       |     |     |       |
restructuring costs, %            |  0.7|  4.6|       |  1.8|  4.1|       |  3.8
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating profit,                 |     |     |       |     |     |       |
EUR million                       | -0.6|  7.2|   n.a.| -1.6| 13.6|   n.a.| 20.0
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Operating margin, %               | -0.3|  3.7|       | -0.4|  3.6|       |  2.5
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Profit before taxes,              |     |     |       |     |     |       |
EUR million                       | -0.8|  7.0|   n.a.| -2.2| 11.8|   n.a.| 17.1
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Earnings per share, basic, EUR    |-0.04| 0.07|   n.a.|-0.11| 0.11|   n.a.| 0.13
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Earnings per share, diluted, EUR  |-0.04| 0.07|   n.a.|-0.11| 0.11|   n.a.| 0.13
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Gearing, %                        |     |     |       | 60.4| 29.0|       | 28.2
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Return on investment,  % (R12M)   |     |     |       |  0.0| 10.0|       |  7.4
----------------------------------+-----+-----+-------+-----+-----+-------+-----
Average number of personnel during|     |     |       |     |     |       |
period, calculated as full time   |     |     |       |     |     |       |
equivalents (FTE)                 |6,816|6,712|    1.5|6,816|6,712|    1.5|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-JUNE 2012 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.

- Due to disappointing result in the second quarter Pöyry Group's operating
profit for 2012, excluding restructuring costs, is expected to decline compared
with 2011.  On 29 June 2012, based on preliminary information, the comparable
group operating profit estimate was reduced to "stable" from "improves clearly".
- The Group's order stock totalled EUR 644.1 million (742.1) at the end of the
first half 2012.
- Consolidated net sales increased by 8.8 per cent compared with the year before
to EUR 408.3 million (375.3).
- Operating profit excluding restructuring costs was EUR 7.5 million (15.5)
corresponding to 1.8 per cent (4.1) of net sales.
- Operating profit improved significantly in the Industry business group but was
lower than the year before in all other business groups.
- In the first half of 2012 restructuring costs totalled EUR 9.1 million of
which EUR 7.2 million were recognised in the first quarter of 2012.
- Unallocated costs in the first half of 2012 were EUR 13.1 million which
includes EUR 8.5 million restructuring costs.
- 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
half of 2012. The current net value of the receivable is EUR 24.8 million.
- In June 2012 Alexis Fries was appointed President and CEO. He will take up the
position during the autumn 2012. At the same time Henrik Ehrnrooth, Chairman of
Pöyry PLC's Board of Directors, was appointed interim President and CEO until
Alexis Fries takes over the position.

UPDATED OUTLOOK FOR 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.

Based on preliminary information on the second quarter result Pöyry reduced its
estimate for the full year 2012 operating profit on 29 June 2012 and the Group's
operating profit for 2012, excluding restructuring costs, was expected to remain
stable compared with 2011. The outlook for the Group's net sales for the full
year 2012 remained unchanged.

Updated outlook concerning business groups:
Net sales are expected to remain stable in all business groups. The outlook for
the Industry business group was changed from "improves clearly" to "stable". The
outlook for other business groups remained unchanged.

Operating profit in the Energy business group is expected to decline and in the
Management Consulting business group to decline clearly. The previous outlook
for both business groups was "stable". Operating profit in the Industry business
group is expected to improve. The previous outlook was "improves clearly".
Operating profit in the Urban business group is expected to improve
significantly considering the low comparison figure. The outlook remained
unchanged.

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

Group outlook from the January-March Interim Report on 25 April 2012:
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.

Outlook concerning business groups as on 25 April 2012:
The net sales in the Energy, Urban, and Management Consulting business groups
are expected to remain stable compared with 2011. Net sales in the Industry
business group are expected to improve clearly

The operating profit in the Urban business group is expected to improve
significantly and in the Industry business group to improve clearly. The
operating profit in the Management Consulting and Energy business groups is
expected to remain stable.

COMMENTS FROM HENRIK EHRNROOTH, CHAIRMAN OF THE BOARD OF DIRECTORS AND PRESIDENT
AND CEO:"Group's second quarter operating profit of EUR 7.5 million or 1.8 per cent of
net sales before restructuring costs did not meet our expectations. Group's
order stock has reduced but remained on a satisfactory level of EUR 644 million
and the prospect pipeline is stable. Net sales for the first half increased by
approximately 9 per cent from the previous year and totalled EUR 408 million.

We have continued the strategic review of our business portfolio which has led
to closures and divestments of some low performing and non-core offices and
business units. These actions burden the comparable operating profit in the
short term. Especially in the Urban business group we have also recognised one
time project and credit losses mainly outside of our core markets. Lower than
anticipated activity levels in certain markets, especially in the Energy
business group, and weaker than expected top line development, especially in the
Management Consulting business group, have negative impact on the business
groups' profitability. Restructuring costs in the first half remained high at
EUR 9.1 million.

During the summer we revisited our strategy. In the strategy period 2013-2015 we
will continue implementing our key strategic priorities. In the short term the
emphasis will be on improving our profitability by further increasing the focus
both in the business portfolio and geographically. Group's financial targets
remain unchanged. The operating model and internal processes for business
operations and support functions will be radically improved and simplified.
These plans are expected to result in significant improvements. More detailed
information on estimated financial impacts will be available later this year."

This is a summary of the January-June 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 27 JULY 2012
The January-June 2012 result will be presented by CFO Jukka Pahta 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 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 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 a 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#1629847]

Attachments:

ENG_Interim_Report_Q2_2012.pdf