Full-year outlook for 2012 updated
Tieto expects its full-year net sales to remain in line with the previous year’s level (EUR 1 828 million in 2011).
As the current development in results is expected to continue during the rest of 2012, Tieto expects its full-year operating profit (EBIT) excluding one-off items to increase by more than 10% from the previous year’s level (EUR 117.1 million in 2011).
In the nine-month period, Tieto booked EUR 38.6 million in costs related to the streamlining actions. It is expected that the remaining part of the estimated total one-off costs of EUR 50 million will be booked during the fourth quarter of 2012.
Previous net sales and EBIT outlook, disclosed on 20 July 2012:
Tieto expects its net sales to develop in line with the anticipated growth rate for the Western European IT services market, i.e. 0–2%. Full-year operating profit (EBIT) excluding one-off items is expected to be above the previous year’s level (EUR 117.1 million in 2011).
|Net sales, EUR million||423.5||414.5||1 346.7||1 338.4|
|Change in net sales, %||2||7||1||8|
|Operating profit (EBITA), EUR million||33.0||31.0||73.9||77.5|
|Operating margin (EBITA), %||7.8||7.5||5.5||5.8|
|Operating profit (EBIT), EUR million||31.6||29.2||69.6||72.0|
|Operating margin (EBIT), %||7.5||7.1||5.2||5.4|
Operating profit (EBIT) excl. one-off items,
|Operating margin (EBIT) excl. one-off items, %||8.8||8.3||6.9||6.2|
|Profit after taxes, EUR million||22.7||22.5||47.9||47.4|
|Net cash flow from operations, EUR million||36.3||40.7||101.3||79.5|
|Return on equity, 12-month rolling, %||10.7||8.9||10.7||8.9|
|Return on capital employed, 12-month rolling, %||17.6||16.1||17.6||16.1|
|Investments, EUR million||15.6||11.2||43.6||89.8|
|Interest-bearing net debt, EUR million||59.0||111.9||59.0||111.9|
|Personnel on 30 Sep||17 404||18 145||17 404||18 145|
Comment regarding the interim report by Kimmo Alkio, President and CEO:
“I am pleased with Tieto’s third-quarter performance as our operating profit excluding restructuring costs increased by 8%. This confirms that we are steadily improving our results and implementing the targeted cost reduction measures as one of the elements of our strategy. During the recent months, our customer satisfaction has also developed positively, as our annual customer experience survey indicates that Tieto has shown a clear improvement in overall quality.
We have also initiated activities to speed up the implementation of the Consulting and System Integration business, while accelerating our Managed Services offshore deliveries to strengthen our competitiveness. Despite flat full-year revenue projections, we expect that our current momentum in improving our financial performance will continue during the rest of the year. Towards the end of the year, preparations to take our new operating model into use at the beginning of 2013 will also remain in our focus.”
FINANCIAL PERFORMANCE IN JULY–SEPTEMBER
Financial performance by market unit
|Net sales Q3/2011, EUR million||Change, %||Operating margin Q3/2012, %||
Operating margin Q3/2011,
|Finland and the Baltic countries||176||169||4||10.8||10.2|
|Central Europe & Russia||30||31||-4||-14.0||-11.5|
Operating profit excluding one-off items by market unit
Operating profit excl. one-off items Q3/2011,
Operating margin excl. one-off items Q3/2012,
Operating margin excl. one-off items
|Finland and the Baltic countries||19.3||19.4||11.0||11.5|
|Central Europe & Russia||-3.2||-3.6||-10.6||-11.4|
Steering Functions and Group
For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at) tieto.com
Pellervo Hämäläinen, Vice President, Communications and IR, tel. +358 2072 52729, +358 40 674 5257, pellervo.hamalainen (at) tieto.com
Tanja Lounevirta, Head of Financial Communications, tel +358 2072 71725, +358 50 321 7510, tanja.lounevirta (at) 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 Kimmo Alkio, President and CEO.
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.
NASDAQ OMX Helsinki
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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 about 18 000 experts, we aim to become a leading service integrator creating the best service experience in IT, www.tieto.com
Business ID: 0101138-5
Aku Korhosen tie 2−6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Fax +358 2072 68898
Registered office: Helsinki