2011-07-22 07:00:00 CEST
2011-07-22 07:00:08 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO's interim report 2/2011 (April-June) - Good growth continues, profitability improvements been accelerated
April-June highlights
-- Net sales totalled EUR 462.3 (431.5) million, an increase of 7%.
-- Order intake at EUR 600 (590) million.
-- Operating profit (EBIT) amounted to EUR 19.2 (19.5) million, representing
an operating margin of 4.2% (4.5).
-- Operating profit excluding one-off items was EUR 24.5 (21.3) million,
representing an operating margin of 5.3% (4.9).
-- Profit after taxes was
EUR 11.4 (11.7) million.
-- Net cash flow from operations amounted to EUR 0.0 (27.5) million.
January-June highlights
-- Net sales totalled EUR 923.9 (854.4) million, an increase of 8%.
-- Order intake was EUR 1 132 (962) million.
-- Operating profit (EBIT) amounted to EUR 42.8 (38.3) million, representing
an operating margin of 4.6% (4.5).
-- Operating profit, excluding
one-off items, amounted to EUR 48.5 (47.9) million, 5.2% (5.6) of net
sales.
-- Profit after taxes was
EUR 24.9 (23.7) million.
-- Net cash flow from operations amounted to EUR 38.8 (55.4) million.
Outlook for 2011 unchanged
For 2011, industry analysts expect growth of 2-4% for the IT services market in
Western Europe. In 2011, Tieto expects its net sales to develop in line with
the Western European IT services market. Full-year operating profit (EBIT)
excluding one-off items is expected to be better than in 2010 (EUR 110.0
million in 2010).
Q2/2011 Q2/2010 H1/2011 H1/2010
--------------------------------------------------------------------------------
Net sales, EUR million 462.3 431.5 923.9 854.4
--------------------------------------------------------------------------------
Change in net sales, % 7 -3 8 -3
Operating profit (EBITA), EUR million 21.0 21.5 46.5 42.1
Operating margin (EBITA), % 4.5 5.0 5.0 4.9
Operating profit (EBIT), EUR million 19.2 19.5 42.8 38.3
Operating margin (EBIT), % 4.2 4.5 4.6 4.5
Operating profit (EBIT) excl. one-off items, 24.5 21.3 48.5 47.9
EUR million
Operating margin (EBIT) excl. one-off items, % 5.3 4.9 5.2 5.6
Profit after taxes, EUR million 11.4 11.8 24.9 23.7
Net cash flow from operations, EUR million 0.0 27.5 38.8 55.4
EPS, EUR 0.16 0.17 0.35 0.33
Return on equity, 12-month rolling, % 9.6 13.8 9.6 13.8
Return on capital employed, 12-month rolling, 14.9 21.1 14.9 21.1
%
Investments, EUR million 13.3 25.2 78.6 48.5
Interest-bearing net debt, EUR million 136.4 89.6 136.4 89.6
Gearing, % 25.8 17.1 25.8 17.1
Personnel on 30 June 18 071 16 885 18 071 16 885
--------------------------------------------------------------------------------
Ari Karppinen, acting President and CEO:
“Sales continued to grow in the second quarter, and we signed many important
new contracts. We have kept tight control on the fixed costs, but the volume
growth has lead to increased use of subcontractors and our variable costs have
grown faster than sales. In addition to this, profitability was burdened by
efficiency and quality costs. This is an area where we already have started a
number of actions that will lead to improved profitability.
Our view on the IT services market development is intact despite the increasing
concerns over European economies. However, a prolonged debt crisis might have a
negative impact on our customers businesses as well as the currently good
development in the IT services market.
At the moment, the demand for IT services is growing in all our main markets
and we plan to capture this good momentum. Our main focus is on using our
resources and competences as efficiently as possible to meet customer demand
and provide excellent services to our customers. Additionally, we will continue
to execute the initiated streamlining actions and ensure that we follow our
internal processes diligently to avoid internal inefficiency and unnecessary
quality costs. We trust that these measures will yield results towards the end
of the year.“
FINANCIAL PERFORMANCE IN APRIL-JUNE
Financial performance by market unit
Net Net sales Q2/2010, Change Operating margin Operating margin
sales EUR million , % Q2/2011, % Q2/2010, %
Q2/201
1,
EUR
millio
n
--------------------------------------------------------------------------------
Finla 178 184 -3 2.4 8.7
nd
and
the
Balt
ic
coun
tries
--------------------------------------------------------------------------------
Scand 140 118 18 3.7 4.9
inavi
a
Centr 33 32 3 -17.1 -13.3
al
Euro
pe &
;amp;
Russ
ia
Globa 193 178 8 9.6 9.5
l
Acco
unts
Group -80 -81 0
elim
inati
on
Total 462 431 7 4.2 4.5
--------------------------------------------------------------------------------
For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950,
lasse.heinonen@tieto.com
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358 2072
68711,
+358 50 522 0924, reeta.kaukiainen@tieto.com
Press conference for analysts and media will be held at Tieto's premises in
Helsinki, address: Aku Korhosen tie 2‑6, at 9.30 am EET (8.30 am CET. 7.30 am
UK time). The results will be presented in English by Ari Karppinen, acting
President and CEO and Lasse Heinonen, CFO.
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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