Caverion Corporation's Interim Report for January 1–March 31, 2015

Helsinki, 2015-04-24 08:00 CEST (GLOBE NEWSWIRE) --  

CAVERION CORPORATION                  INTERIM REPORT                    April 24, 2015 at 9:00 a.m.

INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2015

January 1 – March 31, 2015

·         Order backlog: EUR 1,392.4 (Q4/2014:1,323.6) million on March 31, an increase of 5% from the end of last year.

·         Revenue: EUR 563.4 (591.3) million.

·         EBITDA: EUR 14.2 (9.6) million, or 2.5 (1.6) percent of revenue.

·         Working capital: Working capital amounted to EUR -13.1 million (Q4/2014: -19.3).

·         Operating cash flow before financial and tax items: EUR 9.8 (-11.1) million.

Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.

KEY FIGURES

Word from the President and CEO Fredrik Strand

“Our strategy execution has progressed according to plan during the period. During the "Build” phase of our strategy we are building a common operational model and processes for the whole group. Furthermore, we are investing in systems, tools and harmonisation to shorten the invoicing process. Our working capital management is now under control. As a result, our operating cash flow improved during the first quarter.

The stabilisation of our operations can also be seen in our improved profitability during the first quarter. During the period we have finalised the remaining low-performing projects in Norway. In one of these projects the provision made during the second quarter of 2014 was insufficient, and the additional negative impact of closing that project amounted to EUR 2.9 million. In addition, we had one technical incident in Finland resulting in a settlement with an industrial client, amounting to EUR 0.7 million.

In the second quarter we will continue to implement our common operational model and processes for the whole group. Furthermore we will continue to develop our business mix for the future with initial focus on Large Projects with Total Technical Solutions, Managed Services and Technical Installation & Maintenance. During the first quarter, we have already received a number of new demanding life cycle contracts and total technical solutions projects in line with our strategy.”

OUTLOOK FOR 2015

Market outlook for Caverion’s services and solutions

The mega trends in the industry, such as increase of technology in buildings, energy efficiency requirements, increasing digitalisation and automation continue to promote demand for Caverion’s services and solutions over the coming years.

Technical installation and maintenance business is expected to be stable. Requirements for increased energy efficiency and better indoor conditions and tightening environmental legislation will be significant factors to support positive market development.

Large new tenders for buildings and industry are expected to increase during the year. Positive signs can be seen in tendering activity, especially in the public and industrial sectors. Low interest rates and availability of financing are expected to support investments. The demand for design & build of total technical solutions is expected to develop favourably in the large and technically demanding projects.

Demand for managed services is expected to increase. As technology in buildings is increasing the need for new services and the demand for life cycle solutions are expected to increase. Customers’ tendency towards focusing on their core operations continues to open opportunities for Caverion in terms of outsourced operation and maintenance mainly for public authorities, industries and utilities.

Overall changes in the operating environment due to growing uncertainty over the general macroeconomic development and mounting geopolitical tensions may lead to some cautiousness in project start-ups and service demand.

Guidance for 2015

Caverion reiterates its guidance announced on January 29, 2015, according to which Caverion estimates that the Group’s revenue will remain at the previous year's level and EBITDA margin for 2015 will grow significantly.

INFORMATION SESSION, WEBCAST AND CONFERENCE CALL

Caverion will hold a news conference and webcast on the Interim Report on Friday, April 24, 2015, at 11:00 a.m. (Finnish Time, EEST) at at the Kämp Hotel (Gallen-Kallela meeting room), Kluuvikatu 2, Helsinki, Finland. The news conference can also be viewed live on Caverion’s website at www.caverion.com/investors. It is also possible to participate in the event through a conference call by calling the assigned number +44 (0)20 7162 0077 at 10:55 a.m. (Finnish time, EEST) at the latest. The participants will be asked to provide the conference ID 952566. More practical information on the news conference can be found on Caverion's website, www.caverion.com/investors.

Financial information and IR events in 2015

Interim Reports will be published on July 23 and October 23, 2015. Financial reports and other investor information are available on Caverion's website, www.caverion.com/investors, and IR App. The materials may also be ordered by sending an e-mail to IR@caverion.com.

Caverion will also arrange a Capital Markets Day in Aachen, Germany on September 9, 2015 at 9:00 a.m. (CEST). Further information on the programme will be published as a stock exchange release closer to the date.

CAVERION CORPORATION

For further information, please contact:

Antti Heinola, Chief Financial Officer, Caverion Corporation, tel. +358 40 352 1033, antti.heinola@caverion.fi

Milena Hæggström, Head of Investor Relations, Caverion Corporation, tel. +358 40 5581 328, milena.haeggstrom@caverion.fi

Distribution: NASDAQ Helsinki, principal media, www.caverion.com