Outotec's Interim Report January-March 2015
(Thomson Reuters ONE) -
OUTOTEC OYJ INTERIM REPORT APRIL
27, 2015 AT 12.45 PM
INTERIM REPORT JANUARY-MARCH 2015
Good growth in orders and service sales
January-March 2015 in brief (comparison period in 2014):
* Order intake: EUR 260 (210) million, +23% (in comparable currencies +18%)
* Order backlog: EUR 1,132 (1,216) million, -7%
* Sales: EUR 277 (344) million, -19% (in comparable currencies -22%)
* Service sales: EUR 118 (108) million, +10% (in comparable currencies +7%)
* EBITA (excluding one-time items): EUR 8 (12) million, -38%
* EBITA (excluding one-time items), %: 2.8 (3.6)
* Earnings per share: EUR 0.00 (0.03)
Financial guidance for 2015 reiterated
Based on the 2014 year-end backlog and current operating environment, the
management estimates that in 2015:
* Sales will be approximately EUR 1.2-1.4 billion, and
* EBITA (excluding one-time items) will be approximately 5-7%
Summary of the Group's key figures Q1 Q1 Last 12 Q1-Q4
2015 2014 months 2014
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Order intake, EUR million 259.7 210.3 1,227.3 1,177.9
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Service order intake, EUR million 131.2 133.3 552.9 555.0
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Share of services in order intake, % 50.5 63.4 45.1 47.1
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Order backlog at the end of the period, EUR
million 1,132.2 1,215.8 1,132.2 1,138.0
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Sales, EUR million 277.5 343.9 1,336.2 1,402.6
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Service sales, EUR million 118.3 107.5 529.8 519.0
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Share of services in sales, % 42.6 31.3 39.7 37.0
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Gross margin, % 28.4 21.7 24.3 22.9
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EBITA (excluding one-time items), EUR million 7.7 12.4 51.3 56.0
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EBITA (excluding one-time items), % 2.8 3.6 3.8 4.0
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EBIT, EUR million 3.6 8.7 5.3 10.4
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EBIT, % 1.3 2.5 0.4 0.7
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Profit before taxes, EUR million 1.0 6.4 -5.2 0.2
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Net cash from operating activities, EUR
million -35.3 4.7 -20.1 19.9
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Net interest-bearing debt at the end of the
period, EUR million 51.2 -82.7 51.2 -5.8
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Gearing at the end of period, % 11.4 -18.7 11.4 -1.3
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Working capital at the end of the period, EUR
million -2.0 -24.6 -2.0 -28.2
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Return on investment, %, LTM 0.2 21.6 0.2 1.7
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Return on equity, %, LTM -0.8 17.0 -0.8 0.0
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Personnel at the end of the period 4,966 4,834 4,966 4,571
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Earnings per share, EUR 0.00 0.03 -0.02 0.00
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President and CEO Pertti Korhonen:
"The market continued moving sideways in the first quarter of 2015 due to weak
metal prices development, and minerals and metals producers' focus on maximizing
free cash flows. Therefore I am pleased that we managed to grow our order intake
by 18 percent in comparable currencies.
Our sales contracted from the comparison period due to small order intake in the
plant and equipment businesses in 2014. I am pleased that our service sales
increased 7 percent with comparable currencies despite the weak market.
Our profitability was weak due to lower sales and currency hedge related
valuation losses. The Minerals Processing business area's profitability
weakened, whereas the Metals, Energy & Water business area improved its
profitability from the comparison period, despite lower sales. By the end of
March 2015 we have achieved EUR 26 million annual savings in our EUR 45 million
cost savings program launched in October 2014 and the program is proceeding on
track.
The acquisition of Kempe Engineering's aluminum smelter technologies as well as
service and spare parts businesses in the Middle East and Africa, will
strengthen our service capabilities and complement our aluminum technology
offering. In order to reduce our exposure to mining and metals Capex market
volatility, we will continue to grow our service business and further strengthen
our business portfolio through acquisitions.
The market outlook for 2015 continues to be uncertain due to volatile metal
prices and customers' focus on maximizing their free cash flows. However, there
are good prospects for sustainable solutions in certain commodities and
geographies, and we expect that investments in base metals will gradually start
to revitalize to compensate for reducing capacity. We have a strong sales funnel
and our priority going forward is to grow our order intake and improve
profitability."
RECLASSIFICATION OF PRODUCT MANAGEMENT COSTS IN OUTOTEC'S INCOME STATEMENT
In Outotec's income statement from January 1, 2015, all costs related to
technical product management have been included in Research and Development
(R&D) expenses, and all costs related to commercial product management have been
included in Selling and Marketing expenses. Previously some of the costs related
to product management activities were reported in the Cost of Sales above the
Gross Margin in the income statement.
Since 2011, Outotec has been developing and deploying uniform global business
processes and related information technology platforms. The company has now
established a more comprehensive technical product management process as part of
its R&D, and a commercial product management process as part of its selling and
marketing. The reclassification of product management costs is consistent with
the redefinition of the product management business processes and reflects the
true nature of these activities in the profit and loss statement.
When applying the reclassification to Outotec's 2014 income statement, EUR 19.6
million transfers from Cost of Sales to R&D expenses, and EUR 6.9 million to
Selling and Marketing expenses.
Reclassification does not impact Outotec's sales, EBITA, EBIT, or 2015 financial
guidance.
ADDITIONAL SEGMENT INFORMATION
Outotec has started to report the segments' order intake and service sales
figures as of January 1, 2015.
This text is a summary of Outotec's January-March 2015 Interim Report. The full
report is available as an attachment to this report.
FURTHER INFORMATION
Outotec Oyj
Pertti Korhonen, President and CEO
tel. +358 20 529 211
Mikko Puolakka, CFO
tel. +358 20 529 2002
Rita Uotila, Vice President - Investor Relations
tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname(at)outotec.com
BRIEFING
Date: Monday, April 27, 2015
Time: 2.30-3.30 pm (Finnish time)
Venue: Bank, Unioninkatu 20, Helsinki
Joining via webcast
You may follow the briefing via a live webcast at www.outotec.com. The webcast
will be recorded and published on Outotec's website for on-demand viewing.
Joining via teleconference
You may also join the briefing by telephone. To register as a participant in the
teleconference and Q&A session, please dial in 5 to 10 minutes before the start
of the event using the number/confirmation code below.
Confirmation Code: 8598027
FI: +358 9 2310 1619
SE: +46 8 5065 3935
UK: +44 20 3427 1930
US: +1 646 254 3372
Contact information is gathered for registration purposes only and is not used
for commercial purposes.
FINANCIAL REPORTING SCHEDULE IN 2015
* Interim Report for January-June: July 30, 2015
* Interim Report for January-September: October 29, 2015
DISTRIBUTION
Nasdaq Helsinki
Main media
www.outotec.com
Outotec provides leading technologies and services for the Sustainable use of
Earth's natural resources. As the global leader in minerals and metals
processing technology, we have developed many breakthrough technologies over the
decades for our customers in the metals and mining industry. We also provide
innovative solutions for industrial water treatment, the utilization of
alternative energy sources and the chemical industry. Outotec shares are listed
on Nasdaq Helsinki.
Outotec's Interim Report January-March 2015:
http://hugin.info/137025/R/1915183/684492.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Outotec Oyj via GlobeNewswire
[HUG#1915183]
Unternehmensinformation / Kurzprofil:
Datum: 27.04.2015 - 11:45 Uhr
Sprache: Deutsch
News-ID 388534
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