Outotec's January-June 2015 Interim Report
(Thomson Reuters ONE) -
OUTOTEC OYJ INTERIM REPORT JULY
30, 2015 AT 9.00 AM
INTERIM REPORT JANUARY-JUNE 2015
Improved profitability, growth in capex orders
January-June 2015 in brief (comparison period in 2014):
* Order intake: EUR 654 (590) million, +11% (in comparable currencies +6%)
* Order backlog: EUR 1,207 (1,260) million, -4%
* Sales: EUR 588 (679) million, -13% (in comparable currencies -16%)
* Service sales: EUR 244 (226) million, +8% (in comparable currencies +4%)
* EBITA (excluding one-time items): EUR 24 (16) million, +46%
* EBITA (excluding one-time items), %: 4 (2)
* Earnings per share: EUR 0.03 (0.02)
April-June 2015 in brief (comparison period in 2014):
* Order intake: EUR 395 (380) million, +4% (in comparable currencies -0%)
* Sales: EUR 311 (335) million, -7% (in comparable currencies -10%)
* Service sales: EUR 126 (118) million, +6% (in comparable currencies +1%)
* EBITA (excluding one-time items): EUR 16 (4) million, +308%
* EBITA (excluding one-time items), %: 5 (1)
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 Q2 Q2 Q1-Q2 Q1-Q2 Last 12 Q1-Q4
figures
2015 2014 2015 2014 months 2014
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Order intake, EUR million 394.7 379.5 654.3 589.8 1,242.4 1,177.9
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Service order intake, EUR 117.8 147.8 249.0 281.0 523.0 555.0
million
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Share of services in order 29.9 38.9 38.1 47.6 42.1 47.1
intake, %
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Order backlog at the end of 1,207.2 1,259.7 1,207.2 1,259.7 1,207.2 1,138.0
the period, EUR million
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Sales, EUR million 310.8 335.2 588.3 679.1 1,311.8 1,402.6
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Service sales, EUR million 125.8 118.4 244.1 225.9 537.2 519.0
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Share of services in sales, % 40.5 35.3 41.5 33.3 41.0 37.0
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Gross margin, % 28.8 21.3 28.6 21.5 26.1 22.9
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EBITA (excluding one-time 16.1 3.9 23.7 16.3 63.4 56.0
items), EUR million
-------------------------------------------------------------------------------
EBITA (excluding one-time 5.2 1.2 4.0 2.4 4.8 4.0
items), %
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EBIT, EUR million 8.0 -0.3 11.6 8.4 13.6 10.4
-------------------------------------------------------------------------------
EBIT, % 2.6 -0.1 2.0 1.2 1.0 0.7
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Profit before taxes, EUR 5.8 -2.0 6.7 4.4 2.5 0.2
million
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Net cash from operating -7.6 2.6 -42.9 7.3 -30.3 19.9
activities, EUR million
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Net interest-bearing debt at 105.0 -29.6 105.0 -29.6 105.0 -5.8
the end of the period, EUR
million
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Gearing at the end of the 23.7 -6.6 23.7 -6.6 23.7 -1.3
period, %
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Working capital at the end of 38.7 -22.4 38.7 -22.4 38.7 -28.2
the period, EUR million
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Return on investment, %, LTM 1.8 13.9 1.8 13.9 1.8 1.7
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Return on equity, %, LTM 0.4 10.5 0.4 10.5 0.4 0.0
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Personnel at the end of the 4,948 4,865 4,948 4,865 4,948 4,571
period
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Earnings per share, EUR 0.02 -0.01 0.03 0.02 0.01 0.00
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President and CEO Pertti Korhonen:
"The minerals and metals processing market continued moving sideways as
investments in the industry progressed slowly due to weak metal prices, slow
metals demand growth and concerns regarding China's growth projections.
Companies are focusing on improving the operational efficiency of existing
operations and maximizing free cash flows.
In this challenging market environment, I am pleased that we managed to grow our
capex order intake strongly, resulting in a book-to-bill ratio of above one.
This also included significant greenfield capex orders. While spare part orders
grew strongly, the overall service orders were down due to customers'
postponement of maintenance activities, especially in the iron ore value chain.
In line with our expectations, our sales contracted from the comparison period
due to small order intake in the plant and equipment businesses in 2014. Our
service sales continued to grow especially in spare parts, shutdown, upgrade, as
well as operation and maintenance services. Service growth was augmented by the
Kempe acquisition.
Our profitability improved clearly from the comparison period due to better
project execution in the Metals, Energy and Water segment. The Minerals
Processing segment's profitability weakened due to lower sales and currency
exchange impacts. Our cost saving program is running in line with the plan and
will continue until the end of 2015. However, our fixed costs increased
approximately EUR 15 million due to currency impacts, lower resource utilization
rate, and IPR litigation costs, as well as the Kempe acquisition.
Despite the solid order intake in the second quarter, our cash flow was weakened
by the increase in working capital, mainly due to the maturity of large capex
projects in the backlog, as well as an increased share of the service business.
The market outlook for 2015 continues to be uncertain due to further depressed
metal prices and customers' focus on maximizing their free cash flows. While the
overall market outlook is weak especially in the minerals processing area,
Outotec has good sales prospects in certain pockets of the market by commodity,
geography and customers. We expect that investments in base metals will
gradually start to revitalize to compensate for reducing capacity. However, the
recent further drop in metal prices and current macroeconomic uncertainties may
further postpone investments. We have a strong sales funnel, and our priority
going forward is to continue to grow our order intake and maintain the service
growth momentum. At the same time, we will continue to improve our profitability
through further improvements in our cost structure and better resource
utilization stemming from improved order intake. In addition, improving the cash
flow will be a key priority."
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 full year 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-June 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: Thursday, July 30, 2015
Time: 2.00 PM (Finnish time)
Venue: Bank, Unioninkatu 20, Helsinki
Joining via webcast
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Contact information is gathered for registration purposes only and is not used
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FINANCIAL REPORTING SCHEDULE IN 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 January-June 2015 Interim Report:
http://hugin.info/137025/R/1942363/702640.pdf
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Source: Outotec Oyj via GlobeNewswire
[HUG#1942363]
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Datum: 30.07.2015 - 08:02 Uhr
Sprache: Deutsch
News-ID 410279
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