Pöyry - Interim report (Q1 and Q3)

Pöyry Oyj : Interim report 1 January - 30 June 2014

PÖYRY PLC          Interim Report 31 July 2014 at 10:45 a.m.

CORRECTION TO THE INTERIM REPORT: NET SALES AND COMPARABLE OPERATING PROFIT
DECLINED

There is an error on pages 4 and 5 of the interim report published today at
8:30 a.m. as an attachment to the interim report release.

The error occurs in the following sentence under Regional Operations:
Operating profit includes a one-time gain of EUR 19 million from the divestment
in Finland as well as EUR -14 million loss resulting from the write-off of the
receivables from Venezuela.

The correct sentence:
Operating profit includes EUR -14 million loss resulting from the write-off of
the receivables from Venezuela.

The error has been corrected in the attached interim report.

KEY FIGURES

             |4-6/ 2014|4-6/ 2013|Change,|         |         |Change,|
 Pöyry Group |         |         |%      |1-6/ 2014|1-6/ 2013|%      |1-12/ 2013
-------------+---------+---------+-------+---------+---------+-------+----------
 Order stock |         |         |       |         |         |       |
 at end of   |         |         |       |         |         |       |
 period, EUR |         |         |       |         |         |       |
 million     |  482.4  |555.7    |-13.2  |482.4    |555.7    |-13.2  |500.0
-------------+---------+---------+-------+---------+---------+-------+----------
 Net sales   |         |         |       |         |         |       |
 total, EUR  |         |         |       |         |         |       |
 million     |  152.2  |170.2    |-10.6  |303.5    |336.5    |-9.8   |650.8
-------------+---------+---------+-------+---------+---------+-------+----------
 Operating   |         |         |       |         |         |       |
 profit, EUR |         |         |       |         |         |       |
 million     |-2.9     |1.9      |n.a.   |-4.7     |5.0      |n.a.   |13.9
-------------+---------+---------+-------+---------+---------+-------+----------
 Operating   |         |         |       |         |         |       |
 margin, %   |-1.9     |1.1      |       |-1.6     |1.5      |       |2.1
-------------+---------+---------+-------+---------+---------+-------+----------
 Profit      |         |         |       |         |         |       |
 before      |         |         |       |         |         |       |
 taxes, EUR  |         |         |       |         |         |       |
 million     |-3.0     |0.5      |n.a.   |-6.0     |2.7      |n.a.   |9.1
-------------+---------+---------+-------+---------+---------+-------+----------
 Earnings per|         |         |       |         |         |       |
 share,      |         |         |       |         |         |       |
 basic, EUR  |-0.06    |-0.01    |n.a.   |-0.12    |0.00     |n.a.   |0.06
-------------+---------+---------+-------+---------+---------+-------+----------
 Earnings per|         |         |       |         |         |       |
 share,      |         |         |       |         |         |       |
 diluted, EUR|-0.06    |  -0.01  |n.a.   |-0.12    |0.00     |n.a.   |0.06
-------------+---------+---------+-------+---------+---------+-------+----------
 Gearing, %  |         |         |       |34.1     |89.3     |       |26.0
-------------+---------+---------+-------+---------+---------+-------+----------
 Return on   |         |         |       |         |         |       |
 investment, |         |         |       |         |         |       |
 % (R12M)    |         |         |       |-3.3     |4.1      |       |5.8
-------------+---------+---------+-------+---------+---------+-------+----------
 Average     |         |         |       |         |         |       |
 number of   |         |         |       |         |         |       |
 personnel   |         |         |       |         |         |       |
 during      |         |         |       |         |         |       |
 period,     |         |         |       |         |         |       |
 calculated  |         |         |       |         |         |       |
 as full time|         |         |       |         |         |       |
 equivalents |         |         |       |         |         |       |
 (FTE)       |         |         |       |5,659    |6,235    |-9.2   |6,128


All figures and sums have been rounded off from the exact figures, which may
lead to minor discrepancies upon addition or subtraction.

JANUARY - JUNE 2014 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period of the
previous year.

- On 2 June 2014, Pöyry closed the divestment in Finland that included
significant parts of Pöyry's real estate design and consulting business as well
as construction management business for real estate and infrastructure.
- The Group's order stock totalled EUR 482.4 (555.7) million. It increased in
the Industry Business Group but contracted in all other Business Lines.
Excluding the divestment in Finland in June, comparable order stock increased
from EUR 461.4 at the end of the previous year. Comparable order stock on 30
June 2013 was EUR 512.5 million.
- Net sales declined to EUR 303.5 (336.5) million mostly due to the performance
in the Regional Operations.
- Operating profit decreased to EUR -4.7 (5.0) million. Operating profit was
burdened by lower than expected net sales as well as EUR -5.4 million of project
losses and other one-time items recognised mainly in the Regional Operations.
Operating profit includes a one-time gain of EUR 19 million from the divestment
in Finland as well as EUR -14 million loss resulting from the write-off of the
receivables from Venezuela. Operating profit increased in the Management
Consulting Business Group, however it declined in all other Business Lines and
mostly in the Regional Operations except for the Northern European region.
- In line with its strategic evolution introduced in February 2013, Pöyry
integrated its local activities in Latin and North America as well as in Asia
Pacific to Regional Operations in January 2014.
- Pöyry continues to implement its structural and administrative process
improvement program announced at the end of 2012. As these measures are
progressing, Pöyry will introduce further improvements in terms of sales focus,
project management and capacity management.

OUTLOOK FOR 2014
Due to the write-off of the receivables in Venezuela, Pöyry has on 31 July 2014
lowered its guidance for the operating profit for 2014. According to the
guidance announced on 5 February 2014, the Group operating profit in 2014 was
expected to increase. According to the new guidance, the Group's operating
profit in 2014 is expected to decline compared to the operating profit for 2013.

ALEXIS FRIES, PRESIDENT AND CEO:"Pöyry's net sales declined in the first half of the year to EUR 303.5 (336.5)
million. Sales weakened mostly in the Regional Operations which were impacted by
clients' lower investment activity and project delays in Europe and Latin
America. Operating profit declined to EUR -4.7 (5.0) million. The figure
includes EUR -5.4 million of project losses and other one-time items as well as
profit of EUR 19 million originating from the divestment in Finland. Operating
profit was additionally impacted by the write-off of overdue receivables related
to projects from the former Urban Business Group in Venezuela, amounting to EUR
14 million. Pöyry continues to pursue the collection process. Operating profit
improved in the Management Consulting Business Group. While Northern Europe
developed satisfactorily, the overall performance of the Regional Operations was
disappointing and had a negative impact on the figure.

The Group's order prospects were solid, however the progression of larger
project opportunities was taking clearly longer. The Group's overall order
intake decreased in the Energy Business Group, Central Europe and Latin America.
Nevertheless, orders increased in all other Business Lines. The Group's order
stock improved in most Business Lines, amounting to EUR 482.4 million and
improving from EUR 461.4 million at the end of 2013. However, the year-on-year
figure decreased from EUR 555.7 million (or EUR 512.5 million excluding the
divestment in Finland). The decrease affected all Business Lines with the
exception of the Industry Business Group.

The Group's unallocated costs increased in line with expectations due to
advancing centralisation of the global support functions, a process where
considerable cost savings have been achieved.

As communicated earlier, Pöyry strengthened its regional focus in January 2014
by integrating its local activities in Latin and North America, as well as in
Asia Pacific, into the Regional Operations. This is in line with Pöyry's
strategy to grow its services in key domestic markets.

After a difficult start in a weakening market at the beginning of this year, the
Regional Operations in Northern Europe recovered well and showed positive
development. In other regions, however, where lower sales resulted in unsold
engineering hours and losses were recorded in projects originating from the
former Urban Business Group, performance was not satisfactory. Latin America was
impacted by litigation costs related to an arbitration process and a delayed
start-up of a major client project.

Improvements in terms of sales focus, project management and capacity management
have been initiated across all units and are closely monitored as part of our
regular management process.

We continue to progress with Pöyry's organisational evolution, introduced in
February 2013. It is based on Management Consulting, Global Business Lines
focusing on Energy and Industry as well as development of strong Regional
Operations around key countries where we offer engineering services to industry
and infrastructure clients locally through our office network. The related
organisational adjustments have proceeded according to plan.

The divestment in Finland was closed on 2 June 2014, allowing us now to sharpen
our focus on the industry and local infrastructure markets in Northern Europe."

This is a summary of the January-June 2014 Interim report. The complete report
is published as an enclosure to this company announcement and is available in
full on the company's website at www.poyry.com. Investors are advised to review
the complete financial statement release with tables.

PÖYRY PLC

Additional information:
Jukka Pahta, CFO
tel. +358 10 33 22629

INVITATION TO CONFERENCES TODAY 31 JULY 2014

Pöyry's January-June 2014 result will be presented at the following news
conferences:

- A conference for analysts, investors and press will be arranged at 12:00 p.m.
Finnish time at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland. The
event will be hosted by Alexis Fries, President and CEO and Jukka Pahta, CFO.

- An international conference call and webcast in English will begin at 5:00
p.m. Finnish time (EEST). The event will be hosted by Jukka Pahta, CFO.

10:00 a.m. US EDT (New York)
3:00 p.m. BST (London)
4:00 p.m. CEST (Paris)

The webcast may be followed online on the company's website www.poyry.com. A
recording will be made available on the next working day on the same website.

To attend the conference call, please dial:

FI: +358 (0)9 8171 0465
SE: +46 (0)8 5199 9355
UK: +44 (0)20 3194 0550
US: +1 855 269 2605
Other countries: +44 (0)20 3194 0550

Due to the nature of 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 an international consulting and engineering company. We serve clients
globally across the energy and industrial sectors and locally in our core
markets. We deliver strategic advisory and engineering services, underpinned by
strong project implementation capability and expertise. Our focus sectors are
power generation, transmission & distribution, forest industry, chemicals &
biorefining, mining & metals, transportation and water. Pöyry has an extensive
local office network employing about 6,000 experts. Pöyry's net sales in 2013
were EUR 650 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#1844952]

Attachments:

Interim Report 1 January - 30 June 2014.pdf