2012-02-17 11:00:00 CET
2012-02-17 11:00:05 CET
REGULATED INFORMATION
Itella Oyj - Financial Statement Release
Itella Corporation’s Financial Statements and Board of Directors’ Report 2011, FEBRUARY 17, 2012, AT 12:00 NOON (EET)
ITELLA CORPORATION FINANCIAL STATEMENT RELEASE, FEBRUARY 17, 2012, AT 12:00
NOON (EET)
Itella Corporation's Financial Statements and Board of Directors' Report 2011
October-December 2011
-- Itella Group's net sales grew by 1.8% in October-December to EUR 518.1
(508.9) million. Net sales developed positively in all business groups.
-- Operative result improved: operating profit (non-IFRS) before non-recurring
items amounted to EUR 23.5 million (EUR 17.7 million), 4.5% (3.5%) of net
sales. Operating profit before non-recurring items grew to EUR 32.8 (20.6)
million in Itella Mail Communications and fell to EUR -0.9 (3.5) million in
Itella Information and to EUR -1.3 (0.9) million in Itella Logistics.
-- Operating profit in the fourth quarter grew by 24.6% from the previous
year, representing a profit of EUR 19.8 (15.9) million, or 3.8% (3.1%) of
net sales. The period's performance was weighed down by non-recurring items
to the amount of EUR 3.8 (1.8) million.
Year 2011
-- Itella Group's net sales grew by 3.2%, to EUR 1,900.1 million (EUR 1,841.6
million). In local currencies, the increase in net sales was 2.9%.
International operations accounted for 33% (32%).
-- Operating profit (non-IFRS) before non-recurring items amounted to EUR 30.5
million (operating profit EUR 49.6 million), or 1.6% (2.7%) of net sales.
Solvency remained on a good level.
-- Operating loss, non-recurring items included, was EUR 5.9 million
(operating profit 32.4), representing -0.3% of net sales (1.8%). The result
was burdened by non-recurring items to the amount of EUR 36.4 (17.3)
million, of which EUR 27.0 million related to personnel and the cost
cutting program initiated by Itella in August 2011, EUR 16.6 million to a
write-down of goodwill, and EUR -7.2 million to other items.
-- Profit before taxes showed a loss of EUR 16.4 million (operating profit EUR
25.3 million).
-- Net sales in Itella Mail Communications grew modestly (0.9%) and
profitability decreased clearly.
-- Itella Information's net sales grew by 5.4%, but the business group's
operating result before non-recurring items decreased clearly.
-- Itella Logistics' net sales grew by 8.0%, and operating loss before
non-recurring items decreased from the year before.
-- The Board of Directors will not propose the distribution of a dividend for
2011.
-- The Finnish Parliament enacted the new Postal Services Act, and the law
entered into force on June 1, 2011. Itella's subsidiary Itella Posti Oy has
the license for universal service.
Key figures of Itella Group 2011 2010 2009
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Net sales, MEUR 1,900.1 1,841.6 1,819.7
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Operating result (Non-IFRS), MEUR *) 30.5 49.6 86.3
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EBIT margin (Non-IFRS), % *) 1.6 2.7 4.7
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Operating result (EBIT), MEUR -5.9 32.4 46.7
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EBIT margin, % -0.3 1.8 2.6
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Result before tax, MEUR -16.4 25.3 19.6
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Return on equity (12 months), % -4.5 1.4 -0.7
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Return on investment (12 months), % -0.2 4.2 5.8
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Equity ratio, % 46.1 50.5 48.5
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Gearing, % 22.1 18.4 19.7
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Gross capital expenditure, MEUR 102.9 89.5 144.9
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Personnel on average 28,493 28,916 30,217----------------------------------------------------------------
Dividends, MEUR - 4.4 -
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*) Non-IFRS = excluding non-recurring items
Jukka Alho, President and CEO:
”Itella now faces a new era. The impact of electronic communications shows
especially in the decline of the print media's delivery volumes. For a long
time now, we have prepared ourselves for the new competitive situation brought
about by the Postal Services Act. The development has required Itella a
continuous adaptation. The vital question of how to secure future funding for
the universal service obligation remains unsettled.Itella's answer to this
question is to develop its practices in accordance with customer needs and the
income derived from customers.This involves an increase in the number of modern
service outlets, particularly for the needs of e-commerce.However, it is also
possible that the government will define service obligations, which need
funding from the state.
Traditional postal operations are showing many positive signs as well, such as
robust growth in Itella's parcel volumes, arising from the growth of online
commerce.Itella's operating result grew during the final quarter of the
year.The global financial crisis a couple of years ago still reflects the
market, however, and our parcel volumes continue to remain below the levels of
peak years.Itella will continue to invest heavily in the promotion and
development of electronic services.The latest advancement on this front was the
banking license, which, among other advantages, enables the development of
solutions for the receiving and payment of e-invoices within Itella's online
services.
Itella's profitability weakened and the result was burdened particularly by
various non-recurring items regarding for example reduction in the workforce.
In addition to that, in Itella Mail Communications the result was negatively
affected by a clear reduction in the magazine and letter volumes. All of our
business groups are in the process of focusing on their respective core areas
of business.During the past few years, the company has been engaged in an
active - at times even risky - search for growth. It is now time to review such
ventures further and decide which investments show future promise and which
ones to abandon.In Finland, for example, we have disposed of a part of Mail
Communications' Customer Relationship Marketing activities.Regarding the
Information business group, we are in the process of reviewing the operations
in Germany.In respect of Itella Logistics, Swedish and Danish operations, in
particular, face major challenges related to profitability, which demand
systematic improvement measures.While Russian operations are still in need of
further improvement, both our market position and operative development is on
positive trend.All in all, Itella's current performance is not at a
satisfactory level.
Itella's position, however, is sound. Thanks to active investment, we are
considered an interesting alternative or, in some cases, the market leader in
our chosen business segments in Finland and neighboring areas.The postal and
logistics sectors are in the midst of a transition towards a multi-channel
service model, one aspect of which involves the growth of online commerce.The
standing and competitiveness of Logistics' service warehouses in the Nordic and
the Baltic countries, and particularly Russia, is strong.Russia's WTO
membership is expected to promote the growth of the logistics market in our
operating area.Our Information business group has positioned itself as a unique
global provider in demanding outsourcing projects involving financial
management.
Even after this period of heavy investment, Itella's solvency remains good and
we have been satisfied to note that, despite a difficult year, the operative
cash flow of both the entire Group and all of our business groups is clearly in
the black.On the basis of this perspective, the company's future outlook is not
only challenging, but inspiring.”
APPENDICES
Itella's Financial Statements Release and the Board of Directors' Report (PDF)
Corporate Governance Statement 2011
FURTHER INFORMATION
Sari Helander, CFO, tel. +358 50 3791 819, sari.helander@itella.com
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
http://www.itella.com/about/financials/
FINANCIAL CALENDER 2012
Interim Report Q1/2012 May 3
Interim Report Q2/2012 July 25
Interim Report Q3/2012 October 31
PHOTOGRAPS AND LOGOS
http://www.itella.com/about/media/
Itella Group provides solutions for managing information and product flows.
Itella operates in the fields of mail communications, logistics, and financial
management in Europe and Russia. Net sales in 2011 amounted to EUR 1,900
million. The number of staff is approximately 27 500. 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.com/about.
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