Helsinki, Finland, 2013-09-19 06:00 CEST (GLOBE NEWSWIRE) -- YIT Corporation STOCK EXCHANGE RELEASE Sept 19. 2013 at 7 a.m.
PRESENTATION OF YIT’S PRESIDENT AND CEO AT THE CAPITAL MARKETS DAY: AIMING FOR WELL-MANAGED PROFITABLE GROWTH
YIT is organising a Capital Markets Day to present the company strategy for investors and analysts in Moscow today, September 19, 2013. YIT will also comment on its recent development in Russia, housing, business premises and infra services.
The main goal in YIT’s strategy is to achieve well-managed profitable growth. This is pursued through the Group’s own-developed projects in all businesses and all current geographical regions (Finland, Russia, the Baltic countries and Central Eastern Europe). Stronger growth is sought particularly in emerging markets and residential construction. Further focus areas include improving the company’s ability to manage cyclicality, widening financial operating space and accelerating renewal.
In June, the Board of Directors confirmed the following strategic long-term targets for the Group:
The target levels are based on figures reported on the basis of the percentage of completion in accordance with the current emphasis. When determining the target levels the assumption was made that economic growth in YIT´s market areas will continue.
Kari Kauniskangas, President and CEO
“After the demerger, which was completed by the end of June, YIT Group has focused on construction and business development. This summer and autumn, YIT has been successfully implementing the strategy confirmed in the spring. Winning the Central Pasila centre development contract in Helsinki, along with projects totaling approximately one billion euros in value, will offer us significant business volume in Finland from 2015 onwards.
In St. Petersburg, we have obtained the building permit and made the decision to start construction of the Smolny apartment complex in the city centre. The sales value of the currently launched second phase of the project is approximately EUR 130 million. In addition, YIT has obtained acceptance for the city plan of its Novo Orlovski project in St. Petersburg, and the first phase of the project will be initiated this winter. In total, approximately 10,000 new apartments will be constructed in the area. These projects, which span several years, add up to nearly EUR 1.5 billion in value. During the fall, we are also planning to start the construction of our first residential project in Tyumen, Russia.
During the summer and autumn, macroeconomic uncertainty has been reflected in the operations and decision-making of YIT and its customers. In Finland, apartment sales have risen to the normal level at the beginning of the autumn, but sales of detached and terraced houses have remained at a low level compared to YIT’s supply. As a result, we have lowered our residential sales estimate for the remainder of this year. In Finnish residential construction, we will put additional focus on investor deals in addition to consumers. We estimate that YIT will sell a total of around 600 apartments in the third quarter of 2013.
In Russia, the residential sales have remained fairly brisk in all of YIT’s units, but the more conservative economic forecasts and the increased supply of apartments in some of YIT’s operating cities have prevented us from implementing the targeted price increases. In the third quarter of 2013, we estimate that YIT will sell around 1,300 apartments in Russia, the Baltic countries and the Central Eastern Europe. Housing prices are expected to remain stable in all of YIT’s markets for the remainder of the year. We will continue to release capital from slow-moving assets.”
YIT’s guidance for 2013
YIT Corporation estimates that the Group’s revenue and operating profit will decrease from the level of 2012, excluding non-recurring items. The guidance is based on segment reporting, i.e. the percentage of completion method, and it was revised on September 11, 2013.
Capital Markets Day
The Capital Markets Day’s programme starts today, September 19, 2013, at 8:30 a.m. local time; 7:30 a.m. Finnish time (EEST). The event starts with the presentation of YIT’s President and CEO, which can be followed live on YIT’s website at www.yitgroup.com/cmd2013webcast. During the President and CEO’s presentation, a teleconference is also available for investors and analysts on the phone number
+44 20 7153 9154 (PIN-code: 696002#).
Further information about the Capital Markets Day and YIT’s strategy is available on YIT’s website at www.yitgroup.com/investors
For further information, please contact:
Sanna Kaje, Vice President, Investor Relations, YIT Corporation, +358 50 390 6750 email@example.com
Timo Lehtinen, Chief Financial Officer, YIT Corporation, +358 45 6700 626, firstname.lastname@example.org
Vice President, Investor Relations
Distribution: NASDAQ OMX, Major media, www.yitgroup.com
YIT leads the way in the construction sector by creating more attractive and sustainable urban environments in Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. YIT builds housing, business premises and infrastructure, develops entire areas, and offers residential service concepts for consumers. YIT has over 100 years of experience and a strong market position: it is the largest residential construction company in Finland and the most significant foreign residential construction company in Russia. YIT is also one of the largest business premises and infrastructure construction companies in Finland. YIT has more than 6,000 employees in seven countries. In 2012, the company’s revenue was approximately EUR 2.0 billion. YIT’s shares are listed on NASDAQ OMX Helsinki. www.yitgroup.com