Consolidated Earnings and Balance Sheet
The prolonged economic upswing in the world economy turned into a decline during 2001. During the autumn of 2001, all major economies were plunged into a recession, which is expected to continue at least throughout the first half of the current year. The Jaakko Pöyry Group's business operations were affected by the global economic slowdown, especially in the second half of 2001. Consolidated net sales decreased by 9.0 per cent to EUR 431.8 (474.5) million. The decline in net sales was primarily due to the reduction in the volume of turn-key projects of about EUR 40 million. The operating profit of the Jaakko Pöyry Group amounted to EUR 28.0 (31.8) million, which equals 6.5 (6.7) per cent of net sales. Taking into account the difficult business environment, the Group's operating profit was satisfactory, though still below the target for 2001. Earnings per share were EUR 1.30 (1.40). The average growth for the years 1996 to 2001 is on the target level 15 per cent.
The target for the Group's return on investment is 20.0 per cent; in 2001 the return on investment was 21.2 (25.1) per cent.
The consolidated balance sheet is healthy. Shareholders' equity was EUR 104.7 (97.4) million. The equity ratio was 48.9 (42.2) per cent. The Group's liquidity remained good during the financial year. The net debt/equity ratio (gearing) was -3.0 (-2.5) per cent.
Prospects
The Jaakko Pöyry Group's market position is strong and its order stock is good. However, because of the market situation and current economic prospects, 2002 will be a challenging year. Assuming that the world economy will recover as expected in the second half of 2002, the Group's earnings are estimated to remain at the previous year's level, with the return on investment reaching its strategic target level.
The prospects for the business groups are described in the enclosed Board of Directors' report.
The Auditors' Report is dated February 7, 2002.
Dividend
The Board of Directors of Jaakko Pöyry Group Oyj proposes to the Annual General Meeting that a dividend of EUR 0.60 be paid per share for the financial year ended December 31, 2001. The dividend is payable on March 18, 2002.
Annual General Meeting
Jaakko Pöyry Group Oyj's Annual General Meeting of shareholders will be held on March 6, 2002 at the Pöyry House, Vantaa, Finland.
A complete invitation to the Annual General Meeting will be published as a separate notice on February 8, 2002 at 9.00 a.m.
Enclosures
Board of Directors' report for the year ended December 31, 2001
Consolidated statement of income and balance sheet and contingent liabilities
Key figures for the Group
JAAKKO PÖYRY GROUP OYJ
Erkki Pehu-Lehtonen
President and CEO
Teuvo Salminen
Executive Vice President
The full report including tables can be downloaded from the enclosed link.
