2012-04-25 07:00:01 CEST
2012-04-25 07:00:10 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO’s interim report 1/2012 (January–March) – First-quarter performance according to plan, new strategy launched and well received
January-March highlights
-- Net sales totalled EUR 467.1 (461.6) million, an increase of 1%.
-- Order intake at EUR 468 (596) million. Order backlog at
EUR 1 719 (1 708) million at the end of the period.
-- Operating profit (EBIT) amounted to EUR 41.7 (23.6) million, including
capital gains of EUR 15.4 million. Operating margin stood at 8.9% (5.1).
-- Operating profit excluding one-off items stood at EUR 28.0 (23.9) million,
representing an operating margin of 6.0% (5.2).
-- Profit after taxes was
EUR 32.0 (13.5) million.
-- Net cash flow from operations amounted to EUR 69.3 (38.8) million.
-- New strategy for 2012-2016 launched. Personnel negotiations proceeded
according to the plan. The profitability improvement starts to materialize
towards the end of 2012.
Full-year outlook for 2012 unchanged - second-quarter results assume
restructuring costs
The full-year 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).
The second quarter will be strained by anticipated one-off costs of around EUR
30 million. These costs are part of the total streamlining costs of EUR 50
million announced in connection with the strategy launch. Additionally,
existing idle capacity of the company is expected to burden second-quarter
performance. The profitability improvement attributable to the ongoing
streamlining actions starts to materialize towards the end of 2012.
Q1/2012 Q1/2011
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Net sales, EUR million 467.1 461.6
Change in net sales, % 1 9
Operating profit (EBITA), EUR million 43.2 25.5
Operating margin (EBITA), % 9.3 5.5
Operating profit (EBIT), EUR million 41.7 23.6
Operating margin (EBIT), % 8.9 5.1
Operating profit (EBIT) excl. one-off items, 28.0 23.9
EUR million
Operating margin (EBIT) excl. one-off items, % 6.0 5.2
Profit after taxes, EUR million 32.0 13.5
Net cash flow from operations, EUR million 69.3 38.8
EPS, EUR 0.45 0.19
Return on equity, 12-month rolling, % 14.7 9.9
Return on capital employed, 12-month rolling, % 20.8 16.1
Investments, EUR million 14.4 65.3
Interest-bearing net debt, EUR million 11.7 76.2
Gearing, % 2.1 14.6
Net debt/EBITDA 0.1 0.5
Personnel on 31 March 18 121 18 136
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Kimmo Alkio, President and CEO:
“The first-quarter performance was well in line with our short-term plans and
this has given us a good start for the year. Our operating profit was boosted
by a capital gain related to the divestment of financial services products
business in the UK, while the underlying profitability also improved from the
previous year.
We are placing extensive emphasis on implementing our operational priorities
for 2012. Quality consistency is our number one priority across all services.
I'm pleased to see initial signs of improving visibility to our customers
service experience across Tieto. Importantly, we have also initiated customer
specific innovation forums in our core markets to drive new services and user
experiences - such as new consumer applications across numerous industries.
Our recently launched strategy plays an important role in setting new direction
for the company. The choices in our strategy provide for inspiring
opportunities in our chosen industries and markets. In the initial stages of
implementation we are naturally challenged with the restructuring activities
taking place during 2012.
Based on positive customer and employee feedback on the renewed direction, we
are confident to begin the strategy implementation. Our expanded service
offering and sharpened geographical focus coupled with the cost competitiveness
programme are anticipated to improve operating profit as from the second half
of 2012.”
FINANCIAL PERFORMANCE IN JANUARY-MARCH
Financial performance by market unit
Net Net sales Q1/2011, Change Operating margin Operating margin
sales EUR million , % Q1/2012, % Q1/2011, %
Q1/201
2,
EUR
millio
n
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--------------------------------------------------------------------------------
Finla 193 184 5 9.0 7.3
nd
and
the
Balt
ic
coun
tries
Scand 141 141 0 3.9 3.7
inavi
a
Centr 34 31 7 -12.5 -15.9
al
Euro
pe &
Russ
ia
Globa 175 190 -8 17.3 8.1
l
Acco
unts
Group -75 -85
elim
inati
on
Total 467 462 1 9.0 5.1
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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
Tanja Lounevirta, Acting Head of Communications and IR, tel. +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 2.30 pm EET (1.30 pm CET. 12.30 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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