Caverion Corporation Stock exchange release October 19, 2016 at 9.00 a.m. EEST
Caverion specifies its guidance for 2016
In the third quarter of 2016, Caverion Corporation continued the restructuring
of its operations and the review of its project portfolio. As a result of the
review, several projects were still identified with challenges in project
management and execution. The identified challenges mainly relate to divisions
Sweden, Denmark-Norway, Germany and Industrial Solutions. Based on the review,
Caverion has completed and will complete more conservative cost estimate
adjustments and provisions related to its project portfolio. The adjustments
have an impact in the Group’s third and fourth quarter results in 2016.
Caverion has implemented a stricter project tendering process in the Group since
the second quarter. As a result Caverion’s order backlog has slightly decreased
in the third quarter compared to the previous year. This has led to a need to
somewhat increase the Group’s restructuring actions from the previously
estimated level.
Caverion now estimates that the total personnel reductions for 2016 will affect
approximately 1,000 employees (previous estimate approximately 700 employees).
The total cost estimate of the restructuring actions is EUR 20-24 million during
2016 (previous estimate approximately EUR 22-26 million). The positive impacts
of the restructuring actions are expected to be visible in 2017.
Caverion Group’s preliminary EBITDA excluding restructuring costs amounted to
EUR 19.5 million and reported EBITDA to EUR 13.8 million in July–September 2016.
In 2015, Caverion Group reported an EBITDA of EUR 21.3 million in
July–September.
Caverion specifies its guidance for 2016.
New guidance for 2016:
Caverion estimates that the Group’s revenue for 2016 will remain at the previous
year's level (2015: EUR 2,443 million) and the Group’s EBITDA excluding
restructuring costs for 2016 will be in the range EUR 40-50 million (2015: EUR
91.5 million).
Previous guidance for 2016 announced on June 20:
Caverion estimates that the Group’s revenue for 2016 will remain at the previous
year's level (2015: EUR 2,443 million) and the Group’s EBITDA excluding
restructuring costs for 2016 will decrease clearly from the previous year's
EBITDA level (2015: EUR 91.5 million).
Caverion will publish its interim report for January–September 2016 on Thursday
October 27 at approximately 9.00 a.m. Finnish time (EEST). A news conference for
media, analysts and investors will be arranged in conjunction with the interim
report.
CAVERION CORPORATION
Distribution: Nasdaq Helsinki, principal media, www.caverion.com
For additional information, please contact:
Sakari Toikkanen, Interim President and CEO, Caverion Corporation; please
contact Päivi Alakuijala, VP, Marketing and Communications, tel. +358 40 8400
251
Martti Ala-Härkönen, Chief Financial Officer, Caverion Corporation, tel. +358 40
737 6633, martti.ala-harkonen@caverion.com
Milena Hæggström, Head of Investor Relations, Caverion Corporation, tel. +358 40
5581 328, milena.haeggstrom@caverion.com
Caverion designs, builds, operates and maintains user-friendly and energy
-efficient technical solutions for buildings, industries and infrastructure. Our
services and solutions are used in commercial and residential buildings and on
industrial and public sector properties, as well as in processes, ensuring
business continuity, safety, healthy and pleasant surroundings, optimal
performance and cost management. Our vision is to be a leading European provider
of advanced and sustainable life cycle solutions for buildings and industries.
Our strengths include technological expertise and comprehensive services,
covering all technical disciplines throughout the entire life cycles of
properties and industrial plants. Our revenue in 2015 was approximately EUR 2.4
billion. Caverion has over 17,000 employees in 12 countries in Northern, Central
and Eastern Europe. Caverion’s shares are listed on Nasdaq
Helsinki. www.caverion.com (http://www.caverion.fi/), @CaverionGroup
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