2012-10-23 07:00:00 CEST
2012-10-23 07:00:09 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO’s interim report 3/2012 (January–September) – Operating performance continues to improve, full-year outlook for 2012 updated
July-September highlights
-- Net sales totalled EUR 423.5 (414.5) million, up by 2%.
Excluding currency effects and divestments, net sales were up by 1%.
-- Book-to-bill at 0.7 (0.4). Order intake amounted to EUR 307 (177) million.
-- Operating profit (EBIT) amounted to EUR 31.6 (29.2) million, including
one-off items of EUR 5.5 million. Operating margin stood at 7.5% (7.1).
-- Operating profit excluding one-off items stood at EUR 37.1 (34.5) million,
representing an operating margin of 8.8% (8.3).
-- Profit after taxes was
EUR 22.7 (22.5) million.
-- Net cash flow from operations amounted to EUR 36.3 (40.7) million.
-- Strategy implementation and cost reductions proceeded according to plan.
January-September highlights
-- Net sales amounted to EUR 1 346.7 (1 338.4) million, up by 1%.
-- Book-to-bill at 1.0 (1.0). Order intake amounted to EUR 1 280 (1 372)
million.
-- Operating profit (EBIT) amounted to EUR 69.6 (72.0) million, including a
net amount of EUR 23.7 million (negative) in one-off items. Operating
margin stood at 5.2% (5.4).
-- Operating profit, excluding one-off items, amounted to EUR 93.3 (82.9)
million, 6.9% (6.2) of net sales.
-- Profit after taxes was EUR 47.9 (47.4) million.
-- Net cash flow from operations amounted to EUR 101.3 (79.5) million.
Full-year outlook for 2012 updated
Tieto expects its full-year net sales to remain in line with the previous
year's level (EUR 1 828 million in 2011).
As the current development in results is expected to continue during the rest
of 2012, Tieto expects its full-year operating profit (EBIT) excluding one-off
items to increase by more than 10% from the previous year's level (EUR 117.1
million in 2011).
In the nine-month period, Tieto booked EUR 38.6 million in costs related to the
streamlining actions. It is expected that the remaining part of the estimated
total one-off costs of EUR 50 million will be booked during the fourth quarter
of 2012.
Previous net sales and EBIT outlook, disclosed on 20 July 2012:
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).
Q3/ Q3/ 1-9/ 1-9/
2012 2011 2012 2011
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Net sales, EUR million 423.5 414.5 1 346.7 1 338.4
Change in net sales, % 2 7 1 8
Operating profit (EBITA), EUR million 33.0 31.0 73.9 77.5
Operating margin (EBITA), % 7.8 7.5 5.5 5.8
Operating profit (EBIT), EUR million 31.6 29.2 69.6 72.0
Operating margin (EBIT), % 7.5 7.1 5.2 5.4
Operating profit (EBIT) excl. one-off items, 37.1 34.5 93.3 82.9
EUR million
Operating margin (EBIT) excl. one-off items, % 8.8 8.3 6.9 6.2
Profit after taxes, EUR million 22.7 22.5 47.9 47.4
Net cash flow from operations, EUR million 36.3 40.7 101.3 79.5
EPS, EUR 0.32 0.31 0.67 0.66
Return on equity, 12-month rolling, % 10.7 8.9 10.7 8.9
Return on capital employed, 12-month rolling, 17.6 16.1 17.6 16.1
%
Investments, EUR million 15.6 11.2 43.6 89.8
Interest-bearing net debt, EUR million 59.0 111.9 59.0 111.9
Gearing, % 10.2 20.4 10.2 20.4
Net debt/EBITDA 0.3 0.7 0.3 0.7
Personnel on 30 Sep 17 404 18 145 17 404 18 145
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Comment regarding the interim report by Kimmo Alkio, President and CEO:
“I am pleased with Tieto's third-quarter performance as our operating profit
excluding restructuring costs increased by 8%. This confirms that we are
steadily improving our results and implementing the targeted cost reduction
measures as one of the elements of our strategy. During the recent months, our
customer satisfaction has also developed positively, as our annual customer
experience survey indicates that Tieto has shown a clear improvement in overall
quality.
We have also initiated activities to speed up the implementation of the
Consulting and System Integration business, while accelerating our Managed
Services offshore deliveries to strengthen our competitiveness. Despite flat
full-year revenue projections, we expect that our current momentum in improving
our financial performance will continue during the rest of the year. Towards
the end of the year, preparations to take our new operating model into use at
the beginning of 2013 will also remain in our focus.”
FINANCIAL PERFORMANCE IN JULY-SEPTEMBER
Financial performance by market unit
Net Net sales Q3/2011, Change, Operating margin Operating margin
sales EUR million % Q3/2012, % Q3/2011,
Q3/201 %
2,
EUR
millio
n
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Finla 176 169 4 10.8 10.2
nd
and
the
Balt
ic
coun
tries
Scand 129 120 8 6.3 5.0
inavi
a
Centr 30 31 -4 -14.0 -11.5
al
Euro
pe &
Russ
ia
Globa 150 162 -7 7.7 7.4
l
Acco
unts
Group -61 -68
elim
inati
on
Total 423 415 2 7.5 7.1
--------------------------------------------------------------------------------
Operating profit excluding one-off items by market unit
Operati Operating profit excl. Operating margin excl. Operating margin
ng one-off items Q3/2011, one-off items Q3/2012, excl. one-off
profit EUR million % items
excl. Q3/2011,
one-off %
items
Q3/2012
,
EUR
million
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Finla 19.3 19.4 11.0 11.5
nd
and
the
Balt
ic
coun
tries
Scand 10.7 8.6 8.3 7.2
inavi
a
Centr -3.2 -3.6 -10.6 -11.4
al
Euro
pe &
Russ
ia
Globa 12.9 12.5 8.6 7.7
l
Acco
unts
Steer -2.5 -2.4
ing
Func
tions
and
Grou
p
Manag
ement
Total 37.1 34.5 8.8 8.3
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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 40 674 5257, 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 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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