Tieto's net sales still slightly down - strong order intake in the second quarter
(Thomson Reuters ONE) -
Tieto Corporation Press Release 21 July 2010 at 08.05 am EET
This is a press release without tables. You can download the complete version
using this link (pdf):
http://hugin.info/3114/R/1433018/378937.pdf
Second-quarter net sales declined by 3% and amounted to EUR 431.5 (444.8)
million. In most industries, outsourcing of IT operations was brisk. However,
the highly competitive operating environment as well as business transfers to
offshore countries strained net sales. Tieto saw strong order intake in the
second quarter amounting to EUR 590 (483) million.
Second-quarter operating profit (EBIT) amounted to EUR 19.5 (10.4) million,
representing a margin of 4.5% (2.3). The improvement in operating profit is
attributable to lower restructuring costs than in 2009. Operating profit
excluding one-off items decreased to EUR 21.3 (24.6) million, or 4.9% (5.6) of
net sales. Profit before taxes totalled EUR 18.4 (8.8) million and earnings per
share amounted to EUR 0.17 (0.14) in the second quarter.
Tieto continued to invest in global delivery capacity, growth initiatives in
Russia and its offerings, such as cloud services. The costs derived from the
development programmes related to the global delivery model and offerings
increased by around EUR 4 million compared to the second quarter of 2009.
Additionally, Tieto booked development costs of around to EUR 3 million related
to building of the Russian operations.
Activity in the market has picked up, and companies' efforts to achieve cost
savings and improve productivity continue to be the key drivers for investments.
The Nordic IT services market is expected to start growing in the second half of
2010. Growth estimates for the full year provided by market analysts vary from
0% to 2%. The company's outlook remains unchanged. In 2010, the company expects
its net sales to develop in line with the IT services market relevant to Tieto
and its operating profit to be higher than in 2009.
President and CEO Hannu Syrjälä:
"The Nordic IT services market has stabilized and started to recover. During the
second quarter, we signed many significant longer term contracts such as the
ones with the City of Stockholm, Skåne Regional Council and If P&C Insurance.
We have continued to invest in our global delivery model with excellent results
- today 34% of our people are working in offshore countries, an increase of more
than 1 300 employees from the second quarter of 2009. Lower sales together with
spending for development programmes and growth strained our profitability in the
second quarter.
Cloud services are expected to stand for a significant part of new growth in IT
spending in the coming years. We continue to invest in this area to become one
of the leading cloud integrator by 2013 in our main markets. Our new
energy-efficient data centres in Finland, Sweden and Russia provide an excellent
platform for secure, full-scale production of environmentally friendly IT
services.
The pick-up of demand in the IT market and our strengthened sales activities are
expected to benefit our topline in the coming quarters. The demand for IT
outsourcing continues on a good level especially in Sweden and Finland. Our
operations outside Finland and Sweden have also improved, but slower than
planned. We have strengthened the management and re-focused investments in order
to accelerate performance improvement. Profitable growth is on top of our agenda
for the rest of the year for the whole company."
For further information, please contact:
Hannu Syrjälä, President and CEO, tel. +358 2072 010,hannu.syrjala(at)tieto.com
Seppo Haapalainen, CFO, tel. +358 2072 63500,seppo.haapalainen(at)tieto.com
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358
2072 68711,
+358 50 522 0924,reeta.kaukiainen(at)tieto.com
Pasi Hiedanpää, Manager, Investor Relations, tel. +358 2072 68088, +358
50 3782228,pasi.hiedanpaa(at)tieto.com
TIETO CORPORATION
DISTRIBUTION
Principal media
Tieto is an IT service company providing IT, R&D and consulting services. With
approximately 17 000 experts, we are among the leading IT service companies in
Northern Europe and the global leader in selected segments. We specialize in
areas where we have the deepest understanding of our customers' businesses and
needs. Our superior customer centricity and expertise in digital services set us
apart from our competitors.www.tieto.com
[HUG#1433018]
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Source: Tieto Oyj via Thomson Reuters ONE
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Datum: 21.07.2010 - 07:05 Uhr
Sprache: Deutsch
News-ID 24205
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