Tieto Corporation INTERIM REPORT 28 April 2011, 8.00 am EET 1 (3)
January–March highlights
- Net sales totalled EUR 461.6 (422.9) million, an increase of 9%.
- Order intake at EUR 596 (581) million.
- Operating profit (EBIT) amounted to EUR 23.6 (18.8) million, representing an operating margin of 5.1% (4.5).
- Profit after taxes was EUR 13.5 (12.0) million.
- Net cash flow from operations amounted to EUR 38.8 (27.9) million.
| Q1/2011 | Q1/2010 | |||
| Net sales, EUR million | 461.6 | 422.9 | ||
| Change in net sales, % | 9 | -3 | ||
| Operating profit (EBITA), EUR million | 25.5 | 20.6 | ||
| Operating margin (EBITA), % | 5.5 | 4.9 | ||
| Operating profit (EBIT), EUR million | 23.6 | 18.8 | ||
| Operating margin (EBIT), % | 5.1 | 4.5 | ||
| Operating profit (EBIT) excl. one-off items, EUR million | 23.9 | 26.6 | ||
| Operating margin (EBIT) excl. one-off items, % | 5.2 | 6.3 | ||
| Profit after taxes, EUR million | 13.5 | 12.0 | ||
| Net cash flow from operations, EUR million | 38.8 | 27.9 | ||
| EPS, EUR | 0.19 | 0.17 | ||
| Return on equity, % | 9.9 | 13.6 | ||
| Return on capital employed, % | 16.1 | 19.6 | ||
| Investments, EUR million | 65.3 | 23.3 | ||
| Interest-bearing net debt, EUR million | 76.2 | 51.9 | ||
| Gearing, % | 14.6 | 10.2 | ||
| Personnel on 31 March | 18 136 | 16 880 | ||
Outlook for 2011 unchanged
The IT services market started to recover in the latter part of 2010. For 2011, industry analysts expect growth of 2–4% for the IT services market in Western Europe. In 2011, Tieto expects its net sales to develop in line with the Western European IT services market. Full-year operating profit (EBIT) excluding one-off items is expected to be better than in 2010 (EUR 110.0 million in 2010).
FINANCIAL PERFORMANCE IN JANUARY–MARCH
Financial performance by market unit
|
Net sales Q1/2011, EUR million |
Net sales Q1/2010, EUR million | Change, % | Operating margin Q1/2011, % | Operating margin Q1/2010, % | ||
| Finland and the Baltic countries | 185 | 185 | 0 | 7.1 | 8.4 | |
| Scandinavia | 141 | 111 | 27 | 3.4 | 3.5 | |
| Central Europe & Russia | 31 | 31 | 2 | -15.9 | -6.5 | |
| Global Accounts | 190 | 172 | 10 | 8.2 | 7.1 | |
| Group elimination | -86 | -77 | 12 | |||
| Total | 462 | 423 | 9 | 5.1 | 4.5 | |
EVENTS AFTER THE PERIOD
In April, Tieto and I-Teco agreed to pull out of their plans to establish a joint venture company in Russia. The plans were announced in September 2010.
On 12 April, Tieto announced that the share subscription price for Stock Option 2009 C is EUR 12.91 per share.
On 28 April, the Board of Directors announced the change of President and CEO. Ari Karppinen (born 1957), Executive Vice President, Managed Services and Transformation in Tieto, was appointed acting President and CEO as of 28 April.
CHANGE IN THE DISCLOSE OF INTERIM REPORTS
Starting from the first-quarter interim report of 2011, Tieto is adopting the new disclosure procedure enabled by the Standard 5.2b published by the Finnish Financial Supervision Authority. This is a summary of the interim report and the complete report including tables is available as an attachment to this stock exchange release and is also available at www.tieto.com/investors.
For further information, please contact:
Seppo Haapalainen, CFO, tel. +358 2072 63500, +358 400 455587, seppo.haapalainen@tieto.com, at 8.00–9.00 am EET
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358 2072 68711, +358 50 522 0924, reeta.kaukiainen@tieto.com
Press conference for analysts and media will be held at Tieto’s premises in Helsinki, address: Aku Korhosen tie 2‑6, at 2.30 pm EET (1.30 pm CET. 12.30 pm UK time). The results will be presented in English by Seppo Haapalainen, CFO. Additionally, Ari Karppinen, acting President and CEO, and Markku Pohjola, Chairman of the Board of Directors, will be available for questions.
The conference will be webcasted and published live on Tieto's website www.tieto.com and there will be a possibility to present questions online. An on-demand video will be available after the conference.
Tieto publishes financial information in English, Finnish and Swedish. All releases are posted in full on Tieto's website as soon as they are published.
TIETO CORPORATION
DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media
Tieto is the leading IT service company in Northern Europe providing IT and product engineering services. Our highly specialized IT solutions and services complemented by a strong technology platform create tangible business benefits for our local and global customers. As a trusted transformation partner, we are close to our customers and understand their unique needs. With more than 17 000 experts, we aim to become a leading service integrator creating the best service experience in IT, www.tieto.com
Tieto Corporation
Business ID: 0101138-5
Aku Korhosentie 2−6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Fax +358 2072 68898
Registered office: Helsinki
E-mail: info@tieto.com
