IT market continues to be weak, Tieto's profitability improves
slightly from the first quarter>
IT market continues to be weak, Tieto's profitability improves slightly from the first quarter
(Thomson Reuters ONE) - Tieto Corporation Press Release 17 July 2009 at 8.05 am EETThis is a press release without tables. You can download the completeversion using this link (pdf):http://hugin.info/3114/R/1329263/313806.pdfSecond-quarter net sales declined by 7% and amounted to EUR 444.8(480.1) million. In local currencies, net sales declined by 3%. Netsales dropped in most customer industries, reflecting customers'cautiousness in starting new projects. The telecom market continuedto be challenging and Tieto's net sales in the sector declined by13%, having a substantial negative impact on the Group's net sales.Second-quarter operating profit amounted to EUR 10.4 (29.6) million.Operating profit, excluding one-off items amounted to EUR 24.6 (33.2)million, representing a margin of 5.5% (6.9). The number of employeeswas somewhat down during the quarter, resulting in a decrease inpersonnel costs and an improvement in the utilization rate. However,net sales declined at a faster rate than costs. Profit before taxestotalled EUR 8.8 (23.8) million and earnings per share amounted toEUR 0.14 (0.26).To further adjust its operations to the current market situation andthe declining trend in demand, Tieto started new streamlining actionsduring the first quarter of 2009. The streamlining measures includepersonnel adjustments, decreased use of subcontractors, acceleratedutilization of offshore resources, consolidation of offices andcutting business expenses throughout the Group. The costs related tothese measures amounted to EUR 24.9 million in the second quarter.Tieto's outlook for 2009 remains unchanged. The company expects theIT services market to decline in 2009 and tough market conditions tocontinue. Therefore Tieto expects its full-year net sales andoperating profit to decline from last year. In the Nordic countries,the best prospects for growth in 2009 are seen in the outsourcing ofapplication and ICT infrastructure management.President and CEO Hannu Syrjälä:"The IT market continues to be weak and the telecom sector hasremained the most challenging area for us. Although several largeagreements were made in the second quarter, Tieto's net sales weredown 7%. Due to the declining sales and one-time costs, ourprofitability was clearly down from last year, but improved slightlyfrom the first quarter.Outsourcing continues to offer the strongest growth potential forTieto in all our main markets, and this is the area where we aredirecting more and more of our sales efforts currently. In a recentstudy by EquaTerra, Tieto was ranked as the best provider ofapplication management services in the Nordic countries. The positivefeedback we have received from our customers is a clear indicationthat our efforts in quality and innovation are now starting to payoff."For further information, please contact:Hannu Syrjälä, President and CEO, tel. +358 2072 68729,hannu.syrjala(at)tieto.comSeppo Haapalainen, CFO, tel. +358 2072 63500,seppo.haapalainen(at)tieto.comReeta Kaukiainen, EVP, Communications and Investor Relations, tel.+358 2072 68711,+358 50 522 0924, reeta.kaukiainen(at)tieto.comPasi Hiedanpää, Manager, Investor Relations, tel. +358 2072 68088,+358 50 3782228, pasi.hiedanpaa(at)tieto.comTIETO CORPORATIONDISTRIBUTIONPrincipal mediaTieto is an IT service company providing IT, R&D and consultingservices. With approximately 16 000 experts, we are among the leadingIT service companies in Northern Europe and the global leader inselected segments. We specialize in areas where we have the deepestunderstanding of our customers' businesses and needs. Our superiorcustomer centricity and Nordic expertise set us apart from ourcompetitors.www.tieto.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Bereitgestellt von Benutzer: hugin
" alt="Positive Outlook for Carl Zeiss Meditec>">Datum: 17.07.2009 - 07:05 Uhr
Sprache: Deutsch
News-ID 3673
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 280 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"IT market continues to be weak, Tieto's profitability improves
slightly from the first quarter>"
steht unter der journalistisch-redaktionellen Verantwortung von
Tieto Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
