ETTEPLAN OYJ, INTERIM REPORT, AUGUST 12, 2015 AT 02.00 P.M.
ETTEPLAN Q2: STABLE DEVELOPMENT CONTINUED
Review period April-June 2015
- The Group’s revenue increased by 1.5% and was EUR 34.2 million (4-6/2014:
EUR 33.7 million). At comparable exchange rates revenue increased by 2.4%.
- EBIT from business operations was EUR 2.5 million (EUR 2.0 million)
or 7.3% (5.9%) of revenue.
- Operating profit (EBIT) was EUR 2.3 million (EUR 2.3 million) or 6.7% (6.7%) of revenue.
- The profit for the review period was EUR 1.7 million (EUR 1.8 million).
- Operating cash flow improved and was EUR 3.7 million (EUR 3.1) million.
- Earnings per share were EUR 0.09 (EUR 0.09).
- The number of personnel increased and the Group had 1,900 employees at the end
of the period (1,843).
- Etteplan updates the estimate of its market outlook and keeps its financial guidance
unchanged.
Review period January-June 2015
- The Group’s revenue increased by 2.8% and was EUR 68.9 million (1-6/2014:
EUR 67.0 million). At comparable exchange rates revenue increased by 3.6%.
- EBIT from business operations was EUR 4.8 million (EUR 3.3 million)
or 6.9% (5.0%) of revenue.
- Operating profit (EBIT) was EUR 4.4 million (EUR 3.4 million) or 6.3% (5.1%) of revenue.
- The profit for the review period improved and was EUR 3.1 million (EUR 2.6 million).
- Operating cash flow improved and was EUR 3.8 million (EUR 1.4 million).
- Earnings per share were EUR 0.16 (EUR 0.13).
Market outlook
The most important factor in the development of Etteplan’s business operations is the global development of the machinery and metal industry. In spite of political uncertainty, the European markets are showing small signs of improvement. Increased uncertainty in the Asian markets is estimated to continue. The good market situation in North America is expected to continue.
Previous estimate of market outlook
The most important factor in the development of Etteplan’s business operations is the global development of the machinery and metal industry. Market development remains uncertain due to the political and economic situation in Europe. Etteplan’s customers also operate in the North American and Asian markets, where the demand situation is better than in Europe.
Financial guidance
We expect the revenue and operating profit for the year 2015 to grow compared to 2014.
Key figures
| (EUR 1,000) | 4-6/2015 | 4-6/2014 | 1-6/2015 | 1-6/2014 | 1-12/2014 |
| Revenue | 34,240 | 33,737 | 68,890 | 67,019 | 131,916 |
| EBIT from business operations* | 2,509 | 1,975 | 4,763 | 3,335 | 7,394 |
| EBIT from business operations, % | 7.3 | 5.9 | 6.9 | 5.0 | 5.6 |
| Operating profit (EBIT) | 2,305 | 2,273 | 4,356 | 3,430 | 7,856 |
| EBIT, % | 6.7 | 6.7 | 6.3 | 5.1 | 6.0 |
| Basic earnings per share, EUR | 0.09 | 0.09 | 0.16 | 0.13 | 0.30 |
| Equity ratio, % | 38.4 | 33.7 | 38.4 | 33.7 | 39.5 |
| Operating cash flow | 3,695 | 3,058 | 3,832 | 1,363 | 7,754 |
| ROCE, % | 19.8 | 20.7 | 18.3 | 15.5 | 17.8 |
| Personnel at end of the period | 1,900 | 1,843 | 1,900 | 1,843 | 1,859 |
| * EBIT excluding acquisition related items such as amortization on PPA allocations and earn out revaluations | |||||
President and CEO Juha Näkki:
“The development of our business was stable in April-June. EBIT from business operations and cash flow improved clearly. Our revenue growth slowed in April-June as the demand situation remained at the previous quarter’s level. Changes in the European demand situation were mostly customer-specific. Uncertainty increased in the Chinese market, which started to affect in the development of the engineering services market as slower decision-making.
In the area of engineering services, sales of service solutions developed favorably. Nevertheless, our revenue decreased slightly in April-June compared to the previous year. This was attributable to the continued prolongation of contract negotiations with a significant customer and weaker capacity utilization in some of our units. Our Chinese revenue also declined and the number of working hours sold in the Chinese market was lower than in the comparison period. Last year there was a significant project underway that increased the number of hours in the comparison period. However, the number of Chinese working hours sold in the Chinese market increased and the amount of offshoring work grew. The profitability of engineering services improved as the proportion of revenue represented by high value-added Managed Services grew.
In technical documentation, the development of our business was excellent. Organic revenue growth in April-June exceeded the Group’s growth target of 15 per cent and profitability improved clearly. Our efforts to develop our service offering produced good results. Interest in our outsourcing solutions was particularly at a very good level in all market areas, which offers good growth opportunities going forward. The improvement in the profitability of technical documentation was attributable to the positive development of Managed Services and our software business.
Our operational business progressed systematically during the first half of the year towards our targets, but growth was nevertheless modest. In the second half of the year, we will focus particularly on accelerating growth to get closer to our targets.”
Disclosure procedure
Etteplan follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Etteplan’s January-June 2015 interim report. The complete interim report is attached to this stock exchange release in pdf format and is also available on Etteplan’s website at www.etteplan.com. Investors are advised to review the complete interim report with tables.
Conference call and live webcast today, August 12, 2015
Etteplan’s President and CEO Juha Näkki will present Company’s results for January-June 2015 in a conference call and a live webcast for analysts and investors, held in English language, on August 12, 2015 starting at 3.30 p.m. Finnish time (EET).
To participate in the conference call please dial 5-10 minutes prior to the start of the conference to +358 9 2319 5437, event password is Etteplan2015. Questions can be asked in English after President and CEO’s presentation only through conference call connection.
Juha Näkki’s presentation can be followed as a live webcast though a link at Etteplan’s homepage at www.etteplan.com/Investors. The live webcast starts at 3.30 p.m. Finnish time (EET).
A recording of the webcast will be later available at the same address.
Vantaa, August 12, 2015
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 400 606 372
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan’s Web site at www.etteplan.com.
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.etteplan.com
Etteplan provides engineering services and technical documentation solutions to the world's leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers' products and engineering processes throughout the product life cycle. The results of Etteplan's innovative engineering can be seen in numerous industrial solutions and everyday products.
In 2014, Etteplan had a turnover of EUR 131.9 million. The company has 1,900 professionals in Finland, Sweden, the Netherlands and China. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.
