Outotec's January-September 2015 Interim Report
(Thomson Reuters ONE) -
OUTOTEC OYJ INTERIM REPORT OCTOBER
29, 2015 AT 9.00 AM
INTERIM REPORT JANUARY-SEPTEMBER 2015
Solid order intake, strong cash flow, financial guidance narrowed
January-September 2015 in brief (comparison period in 2014):
* Order intake: EUR 923 (855) million, 8% (in comparable currencies 5%)
* Order backlog: EUR 1,117 (1,217) million, -8%
* Sales: EUR 895 (999) million, -10% (in comparable currencies -11%)
* Service sales: EUR 373 (353) million, 6% (in comparable currencies 4%)
* EBITA (excluding one-time items): EUR 38 (30) million, 26%
* EBITA (excluding one-time items), %: 4 (3)
* Earnings per share: EUR 0.03 (0.00)
* Net cash from operating activities: EUR 22 (-18) million
July-September 2015 in brief (comparison period in 2014):
* Order intake: EUR 268 (266) million, 1% (in comparable currencies 1%)
* Sales: EUR 307 (320) million, -4% (in comparable currencies -2%)
* Service sales: EUR 129 (127) million, 2% (in comparable currencies 4%)
* EBITA (excluding one-time items): EUR 15 (14) million, 3%
* EBITA (excluding one-time items), %: 5 (4)
* Net cash from operating activities: EUR 65 (-25) million
Financial guidance for 2015 narrowed
Based on the current market outlook, customer business activity and order
backlog, the management expects that in 2015:
* Sales will be approximately EUR 1.2-1.3 (previously 1.2-1.4) billion, and
* EBITA (excluding one-time items) will be approximately 5-6 (previously
5-7)%
Summary of the Group's key Q3 Q3 Q1-Q3 Q1-Q3 Last 12 Q1-Q4
figures
2015 2014 2015 2014 months 2014
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Order intake, EUR million 268.4 265.6 922.7 855.5 1,245.1 1,177.9
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Service order intake, EUR 138.3 114.9 387.4 395.9 546.5 555.0
million
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Share of services in order 51.5 43.2 42.0 46.3 43.9 47.1
intake, %
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Order backlog at the end of 1,116.7 1,217.3 1,116.7 1,217.3 1,116.7 1,138.0
the period, EUR million
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Sales, EUR million 307.2 320.3 895.5 999.4 1,298.7 1,402.6
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Service sales, EUR million 129.2 127.0 373.3 352.9 539.4 519.0
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Share of services in sales, % 42.1 39.6 41.7 35.3 41.5 37.0
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Gross margin, % 27.9 25.6 28.4 22.8 26.7 22.9
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EBITA (excluding one-time 14.7 14.2 38.4 30.5 63.9 56.0
items), EUR million
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EBITA (excluding one-time 4.8 4.4 4.3 3.0 4.9 4.0
items), %
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EBIT, EUR million 6.7 -0.3 18.3 8.1 20.6 10.4
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EBIT, % 2.2 -0.1 2.0 0.8 1.6 0.7
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Profit before taxes, EUR 2.5 -3.1 9.2 1.4 8.1 0.2
million
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Net cash from operating 64.8 -25.3 21.9 -18.0 59.8 19.9
activities, EUR million
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Net interest-bearing debt at 74.3 9.0 74.3 9.0 74.3 -5.8
the end of the period, EUR
million
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Gearing at the end of the 17.4 2.0 17.4 2.0 17.4 -1.3
period, %
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Working capital at the end of -12.0 6.7 -12.0 6.7 -12.0 -28.2
the period, EUR million
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Return on investment, %, LTM 3.7 5.1 3.7 5.1 3.7 1.7
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Return on equity, %, LTM 1.5 2.9 1.5 2.9 1.5 0.0
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Personnel at the end of the 4,913 4,948 4,913 4,948 4,913 4,571
period
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Earnings per share, EUR 0.01 -0.02 0.03 0.00 0.03 0.00
-------------------------------------------------------------------------------
President and CEO Pertti Korhonen:
"The market environment in the minerals and metals processing industry has
deteriorated in the third quarter due to increased uncertainty of China's growth
outlook, weakened metal prices, and weakening of emerging market economies.
Continued uncertainty has caused many producers to cut production and postpone
investments further.
Markets in Europe and the Middle East were more active, while those in Asia
Pacific, Africa, Eurasia, and the Americas continued slow. Predominantly,
investments were directed to improve the efficiency of existing operations. In
the reporting period, investments into zinc, copper, and aluminum projects were
more active, while gold and iron ore investments continued to be weak. Good
production rates supported demand for spare parts. Our customers, however,
continued to postpone discretionary upgrades and modernizations. Competition
continued on an intense level.
The demand for sustainable energy solutions increased in some geographical
markets as governments seek to promote waste-to-energy production. In the third
quarter, Outotec won several waste-to-energy projects in the UK and Canada,
demonstrating the competitiveness of our technology.
Our service orders in the third quarter grew 21% in comparable currencies as we
were able to grow shut-down as well as operation and maintenance orders. The
total order intake was flat year-on-year due to weaker capex market. Sales in
the third quarter were down by 2% in comparable currencies. Our service sales
grew 4% in comparable currencies. Despite the lower sales, EBITA (excluding one-
time items) improved, thanks to better project execution and a higher share of
services. While the company's fixed cost reduction program has progressed
according to plan, the market has deteriorated more than expected, which has
caused customer delays in certain projects, resulting to underutilization of
resources. This combined with currency impacts, IPR related litigation costs,
and acquisitions has resulted to increased fixed costs. Our net cash flow
improved significantly in the third quarter.
The market outlook continues to be weak due to depressed metal prices and
postponements of investments in the mining and metals sector. However, Outotec
has good sales opportunities relating to certain commodities, geographies, and
customers as well as waste-to-energy solutions. In anticipation of prolonged
market weakness, we continue looking for areas to further streamline our cost
structure and improve our profitability. Our priority going forward, in addition
to improving our profitability, is to secure order intake and increase service
business in a difficult market."
This text is a summary of Outotec's January-September 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
Jari Ålgars, CFO
tel. +358 20 529 2007
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, October 29, 2015
Time: 2.00 PM (Finnish time)
Venue: Bank, Unioninkatu 20, Helsinki
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FINANCIAL REPORTING SCHEDULE IN 2016
* Financial Statements Review 2015 will be published on February 9, 2016
* January-March Interim Report will be published on April 27, 2016
* January-June Interim Report will be published on July 28, 2016
* January-September Interim Report will be published on October 28, 2016
The Financial Statements for 2015 will be published in week 8/2016 at the
latest. The Annual General Meeting 2016 is planned for April 11, 2016.
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-September 2015 Interim Report:
http://hugin.info/137025/R/1962316/715701.pdf
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Source: Outotec Oyj via GlobeNewswire
[HUG#1962316]
Unternehmensinformation / Kurzprofil:
Datum: 29.10.2015 - 08:01 Uhr
Sprache: Deutsch
News-ID 430365
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