PÖYRY PLC Financial Statement Release 10 February 2016 at 8:30 a.m. EET
OPERATING PROFIT IMPROVED
HIGHLIGHTS JANUARY - DECEMBER 2015
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
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Operating profit increased to EUR 4.0 (-23.1) million. It improved in all Business Lines, especially in the Regional Operations and in the Industry Business Group.
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Comparable net sales were EUR 575.3 (552.4) million. Reported net sales in 2014 were EUR 571.2 million.
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The Group's order stock at the end of December was EUR 465.5 (472.5) million.
KEY FIGURES
| | 10-12/ | 10-12/ | Change, | 1-12/ | 1-12/ | Change, |
| Pöyry Group | 2015 | 2014 | % | 2015 | 2014 | % |
| Order stock at the end of period, EUR million | 465.5 | 472.5 | -1.5 | 465.5 | 472.5 | -1.5 |
| Net sales total, EUR million | 144.5 | 136.4 | 5.9 | 575.3 | 571.2 | 0.7 |
| Operating profit/loss, EUR million | 0.1 | -12.2 | n.a. | 4.0 | -23.1 | n.a. |
| Operating margin, % | 0.1 | -8.9 | | 0.7 | -4.0 | |
| Profit/loss before taxes, EUR million | -0.9 | -14.9 | n.a. | 6.0 | -28.0 | n.a. |
| Earnings per share, basic, EUR | 0.00 | -0.21 | n.a. | 0.09 | -0.40 | n.a. |
| Earnings per share, diluted, EUR | 0.00 | -0.21 | n.a. | 0.09 | -0.40 | n.a. |
| Gearing, % | | | | 3.6 | 39.1 | |
| Return on investment, % | | | | 6.1 | -9.9 | |
| Average number of personnel, full time equivalents (FTE) | | | | 5,029 | 5,433 | -7.4 |
All figures and sums have been rounded off from the exact figures, which may lead to minor discrepancies upon addition or subtraction.
MARTIN À PORTA, PRESIDENT AND CEO:
"Our overall market situation continues to be challenging. However, we are well positioned in a number of growth markets like the Middle East and Asia to tap into opportunities arising in the short and midterm.
We can see a continued positive trend with Pöyry's performance in 2015 and in the fourth quarter. The last quarter was already a fourth consecutive one with a positive operating result, despite some one-time expenses that still burdened our results. We can still improve our performance by turning around a few units that are not yet contributing to the level of our expectations.
Pöyry is now ready to enter the next phase of development after restructuring. We will do everything to improve our competitiveness and to ensure that clients are always the main focus in everything we do. Furthermore, I see three elements that will guide us over the next years: Driving simplification and empowerment of the organisation, strengthening the core of our business and getting ready to scale up."
DIVIDEND PROPOSAL
The Group's parent company Pöyry PLC's net result for 2015 amounted to EUR -5,366,546.04 and retained earnings were EUR 31,207,443.27. The total distributable earnings were EUR 25,840,897.23. The Board of Directors of Pöyry PLC will propose to the Annual General Meeting on 10 March 2016 that no dividend will be paid for the year 2015.
MARKET OUTLOOK FOR 2016
The economic and market outlook for 2016 remains challenging. However, it is also expected to offer new business opportunities for Pöyry. Lower oil and other energy prices can stimulate private demand and investments globally. In addition, the quantitative easing programme of bond purchases launched by the European Central Bank in 2015 is aimed to create conditions for regional and global recovery. Despite the slowing growth in China, the economic growth in the US and the UK is projected to remain robust.
For the businesses relevant to Pöyry, the sector specific outlook remains mixed. In the graphic paper industry, the decline in structural consumption is set to continue. However, in other forest product industry sectors, the outlook is improving. For energy, and other industrial sectors relevant to Pöyry's businesses, the prospects remain unchanged and investment activity is expected to gradually improve. In Europe, growth remains fragile, delaying economic recovery and investment decisions.
CHANGES IN PERFORMANCE MEASURES
In accordance to European Securities and Markets Authority's guidelines on Alternative Performance Measures published in October 2015, Pöyry will disclose from 2016 onwards Adjusted operating result in addition to other key figures.
Adjusted operating result
| | 1-12/ | 1-12/ |
| EUR million | 2015 | 2014 |
| Operating profit / loss | 4.0 | -23.1 |
| Write-down of Venezuelan receivables | - | 13.9 |
| Restructuring and labour claim*) expenses | 2.7 | 5.7 |
| Gains / losses related to divestments | -0.2 | -19.1 |
| Profits/ losses related to projects from former Urban Business Group | 2.0 | 12.1 |
| Profits / losses related to projects finalized over two years ago | 0.9 | 3.4 |
| Other | - | 2.3 |
| Adjusted operating result | 9.4 | -4.8 |
*)Labour claim expenses are expenses related to employment claims customary in one of the Group's operating countries and are based on local professional opinions.
Pöyry discloses adjusted operating result in order to have more transparency and in order to have a measure with which it is possible to assess the development of the performance from one period to another. The adjustment items are not related to the business operations of the reporting period and include restructuring and labour claim expenses, gains/ losses related to divestments and profits/ losses related to projects from former Urban Business Group or projects which have been finalized over two years ago. The adjusted figures for Business Lines are included in disclosures of this Financial Statement release.
FINANCIAL OUTLOOK FOR 2016
The Group's adjusted operating result is expected to be positive.
CORPORATE GOVERNANCE STATEMENT
Pöyry will publish its Corporate Governance Statement 2015 and its Financial Statements 2015, including the Report of the Board of Directors, on 18 February 2016 at the latest. The Corporate Governance Statement will be published separately from the Board of Directors' report and financial statements, and will be published on the company's website at www.poyry.com.
MATERIALS TO THE AGM
The financial statements, the Board of Directors' report, the Corporate Governance Statement, as well as other documents presented to the Annual General Meeting will be published on the company's website at www.poyry.com on 18 February 2016 at the latest.
This is a summary of the January-December 2015 financial statement release. The complete financial statement release is enclosed with this company announcement and is available in full on the company's website at www.poyry.com. Investors are advised to review the complete financial statement release with tables.
PÖYRY PLC
Additional information:
Jukka Pahta, CFO
tel. +358 10 33 22629
INVITATION TO CONFERENCES TODAY ON 10 FEBRUARY 2016
Pöyry's January-December 2015 result will be presented at the following news conferences:
A conference for analysts, investors and press will be arranged at 12:00 p.m. Finnish time (EET) at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland. The event will be hosted by Martin à Porta, President and CEO and Jukka Pahta, CFO.
An international conference call and webcast in English will begin at 5:00 p.m. Finnish time (EET). The event will be hosted by Jukka Pahta, CFO.
The webcast may be followed online on the company's website www.poyry.com. A recording will be made available by the next working day on the same website.
To attend the conference call, please dial:
Conference ID: 956768
Due to the nature of the live webcast, we kindly ask those attending the international conference call and webcast to dial in 5 minutes prior to the start of the event.
Pöyry is an international consulting and engineering company. We serve clients globally across the energy and industrial sectors and provide local services in our core markets. We deliver management consulting and engineering services, underpinned by strong project implementation capability and expertise. Our focus sectors are power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry has an extensive local office network employing about 6,000 experts. Pöyry's net sales in 2015 were EUR 575 million and the company's shares are quoted on NASDAQ Helsinki (Pöyry PLC: POY1V).
DISTRIBUTION:
NASDAQ Helsinki
Major media
www.poyry.com
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Pöyry Oyj via Globenewswire
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