OUTOTEC OYJ STOCK EXCHANGE RELEASE JULY 28, 2014 at 9.30
Outotec lowers its financial guidance for 2014 and publishes order intake for Q2
Outotec lowers its sales and operating profit margin guidance for 2014 and publishes order intake and order backlog for the second quarter of 2014.
· April-June 2014 order intake1): EUR 379.5 (365.6) million, growing 4% and in comparable currencies 15%. From Q1 2014 the order intake grew by 80%.
· Order backlog at the end of June 2014: EUR 1,259.7 (1,761.3) million, decreasing 28%. From Q1 2014 the order backlog grew by 4%.
The main reasons for the change in financial guidance are:
· Lower sales in Capex business due to delayed order intake in the beginning of the year, and slowness in project implementation in Russia due to increased geopolitical uncertainty.
· Cost overruns in five large Capex projects which have been won during 2009-2012, the majority of which are expected to be completed by the end of 2014.
New financial guidance for 2014
Based on the current market outlook, customer tendering activity and assessment of order backlog, the management expects that in 2014:
· Sales will be approximately EUR 1.4-1.6 billion, and
· Operating profit from business operations2) will be approximately 4-6%.
Previous financial guidance
Based on the year-end order backlog, current market outlook, customer tendering activity, and volatility in exchange rates, the management expects that in 2014:
· Sales will be approximately EUR 1.5-1.8 billion, and
· Operating profit from business operations2) will be approximately 5-8%.
1) The change in the service reporting principles increased April-June 2014 order intake by approximately EUR 25 million
2) Excluding one-time items and purchase price allocations (PPA) amortizations
Outotec's Interim Report January-June 2014 will be published on July 31, 2014.
For further information please contact:
Pertti Korhonen, CEO
Tel. +358 20 529 211
Mikko Puolakka, CFO
Tel. +358 20 529 2002
NASDAQ OMX Helsinki