Caverion Corporation's Interim Report for January 1–June 30, 2015


Helsinki, Finland, 2015-07-23 08:00 CEST (GLOBE NEWSWIRE) --  

CAVERION CORPORATION           INTERIM REPORT        July 23, 2015 at 9:00 a.m.

 

INTERIM REPORT FOR JANUARY 1 – JUNE 30, 2015

 

April 1 – June 30, 2015

·        Order backlog: EUR 1,393.1 (Q2/2014: 1,350.3) million.

·        Revenue: EUR 638.1 (588.4) million.

·        EBITDA: EUR 22.0 (2.1) million, or 3.4 (0.4) percent of revenue.

·        Working capital: EUR 7.7 million (Q2/2014: 48.6).

·        Operating cash flow before financial and tax items: EUR 1.8 (4.1) million.

 

January 1 – June 30, 2015

·        Revenue: EUR 1,201.5 (1,179.7) million.

·        EBITDA: EUR 36.2 (11.7) million, or 3.0 (1.0) percent of revenue.

·        Operating cash flow before financial and tax items: EUR 11.7 (-7.0) million.

 

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

 

KEY FIGURES

 

EUR million 4-6/15 4-6/14 Change 1-6/15 1-6/14 Change 1-12/14
Order backlog 1,393.1 1,350.3 3% 1,393.1 1,350.3 3% 1,323.6
Revenue 638.1 588.4 8% 1,201.5 1,179.7 2% 2,406.6
EBITDA 22.0 2.1 951% 36.2 11.7 210% 67.5
EBITDA margin, % 3.4 0.4   3.0 1.0   2.8
Operating profit 15.5 -3.6   23.4 0.4   44.2
Operating profit margin, % 2.4 -0.6   1.9 0.0   1.8
Net profit for the period 10.4 -4.1   15.8 -2.3   27.6
Earnings per share, basic, EUR 0.08 -0.03   0.13 -0.02   0.22
               
Working capital 7.7 48.6 -84% 7.7 48.6 -84% -19.3
Operating cash flow before financial and tax items 1.8 4.1 -55% 11.7 -7.0   113.5
               
Interest-bearing net debt 84.9 142.5 -40% 84.9 142.5 -40% 50.2
Gearing, % 37.3 64.8   37.3 64.8   21.1
               
Personnel, average for the period 17,032 17,333 -2% 17,018 17,354 -2% 17,300

 

Word from the President and CEO Fredrik Strand

 

“Our strategy execution has progressed well during the period. We have focused on building the foundation for further growth with our internal actions. During the "Build” phase of our strategy we are building a common operational model and processes for the whole group. We are also investing in systems, tools and harmonisation to shorten the invoicing process. Furthermore, we are deploying a more rigorous project selection and introducing more thorough project follow-up practices. The "Build" phase of our strategy is now ongoing throughout the Group. As a Group we are now preparing to enter the next phase of our strategy.

 

The stabilisation of our operations can be seen in our financial performance. Our revenue increased by 2% during the first half of the year, which correlates with the stable market conditions in our primary markets. The improved performance in the second quarter compared to last year, is largely explained by the write downs connected to the project portfolio reviews done in 2014. The performance during the rest of the year is considered to be more in line with last year.

 

As we move towards the second half of this year our strategic focus is gradually shifting more towards generating profitable growth. In line with this we 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 second quarter, we have received a number of new demanding Large Projects and Managed Services contracts.”

 

 

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 Thursday, July 23, 2015, at 11:00 a.m. (Finnish Time, EEST) 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 953906. 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 Report for the third quarter will be published on 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). The purpose of the event is to give further insight into Caverion’s strategy and business prospects. In particular, it explains how the development of the business mix and the creation of a unified commercial offering enable growth and profitability improvement. The guests can also visit Caverion Space for Innovation stands showcasing Caverion’s technical solutions and Caverion’s R&D laboratory. Further information on the programme has been published as a stock exchange release on June 1, 2015.

 

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


Attachments

Caverion Interim Report 1-6 2015_ENG July 23 FINAL.pdf