2011-10-25 07:00:00 CEST
2011-10-25 07:00:12 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO's interim report 3/2011 (January-September) - Growth coupled with streamlining actions sustained operating profit
July-September highlights
-- Net sales totalled EUR 414.5 (387.1) million, an increase of 7%.
-- Order intake at EUR 177 (486) million. Order backlog at
EUR 1 608 (1 465) million at the end of the period.
-- Operating profit (EBIT) amounted to EUR 29.2 (27.7) million, representing
an operating margin of 7.1% (7.2).
-- Operating profit excluding one-off items was EUR 34.5 (28.5) million,
representing an operating margin of 8.3% (7.4).
-- Profit after taxes was
EUR 22.5 (24.4) million.
-- Net cash flow from operations amounted to EUR 40.7 (15.1) million.
January-September highlights
-- Net sales totalled EUR 1 338.4 (1 241.5) million, an increase of 8%.
-- Order intake was EUR 1 372 (1 448) million.
-- Operating profit (EBIT) amounted to EUR 72.0 (66.0) million, representing
an operating margin of 5.4% (5.3).
-- Operating profit, excluding
one-off items, amounted to EUR 82.9 (76.5) million, 6.2% (6.2) of net
sales.
-- Profit after taxes was
EUR 47.4 (48.1) million.
-- Net cash flow from operations amounted to EUR 79.5 (70.5) 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).
Q3/2011 Q3/2010
1-9/ 1-9/
2011 2010
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Net sales, EUR million 414.5 387.1
1 1
338.4 241.5
Change in net sales, % 7 1
8 -2
Operating profit (EBITA), EUR million 31.0 29.6
77.5 71.7
Operating margin (EBITA), % 7.5 7.7
5.8 5.8
Operating profit (EBIT), EUR million 29.2 27.7
72.0 66.0
Operating margin (EBIT), % 7.1 7.2
5.4 5.3
Operating profit (EBIT) excl. one-off items, EUR million 34.5 28.5
82.9 76.5
Operating margin (EBIT) excl. one-off items, % 8.3 7.4
6.2 6.2
Profit after taxes, EUR million 22.5 24.4
47.4 48.1
Net cash flow from operations, EUR million 40.7 15.1
79.5 70.5
EPS, EUR 0.31 0.34
0.66 0.67
Return on equity, 12-month rolling, % 8.9 14.2
8.9 14.2
Return on capital employed, 12-month rolling, % 16.1 18.6
16.1 18.6
Investments, EUR million 11.2 23.6
89.8 72.1
Interest-bearing net debt, EUR million 111.9 96.4
111.9 96.4
Gearing, % 20.4 17.5
20.4 17.5
Personnel on 30 Sep 18 145 17 313 18
145 17 313
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Ari Karppinen, acting President and CEO:
”Growth continued during the third quarter and our operating profit excluding
one-off items improved by EUR 6 million from previous year, and the 8.3% EBIT
margin is on a more satisfactory level. This shows that the implemented
improvement actions are yielding concrete results. We have been able to
increase customer work and decrease quality and administration costs. However,
additional improvements are still needed and we are working on these.
The most positive development was seen in Finland and the Baltic countries
where we were able to turn around the previous quarters' declining margin
development and reached 10%. Scandinavia was another strong area with 14%
growth with improving margins. Industry Solutions the best performing business
line with solid growth and improved profitability.
This year we have focused a lot on developing our offering portfolio. Cloud
services and mobility are very much on our and our customers' agenda and we are
launching new interesting services in this area such as Tieto Mobile Shopper
which helps retailers to reach the shoppers through smart phones and offer
location based services or our new offerings that take SAP and database
platforms to the cloud.
The overall business environment is still rather stable despite the worsened
macroeconomic outlook in Europe. Some signs of customer cautiousness are
visible in certain sectors, but we do not expect these to have any material
impact on our 2011 performance. We see continuously good demand especially in
the manufacturing, energy and healthcare and welfare sectors, and believe this
will continue also during the rest of the year.”
FINANCIAL PERFORMANCE IN JULY-SEPTEMBER
Financial performance by market unit
Net Net sales Q3/2010, Change Operating margin Operating margin
sales EUR million , % Q3/2011, % Q3/2010, %
Q3/201
1,
EUR
millio
n
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--------------------------------------------------------------------------------
Finla 169 164 3 10.2 10.7
nd
and
the
Balt
ic
coun
tries
Scand 120 105 14 5.0 4.9
inavi
a
Centr 31 30 3 -11.5 -12.9
al
Euro
pe &
Russ
ia
Globa 162 161 0 7.4 10.4
l
Acco
unts
Group -68 -74 -8
elim
inati
on
Total 415 387 7 7.1 7.2
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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
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358 2072
68711,
+358 50 522 0924, reeta.kaukiainen (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 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
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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