OUTOTEC OYJ HALF YEAR FINANCIAL REPORT JULY 25, 2018 AT 9:00 AM
Half year financial report 2018
Strong growth in order intake and sales, profitability improving
"Good metal production levels and metal prices supported the demand for our minerals and metals processing technologies. Our order intake increased 13% during the first half of the year and 21% in the second quarter compared with the previous year's figures. Service orders also increased by 16% in the first half of the year and 18% in the second quarter. At the end of the second quarter, we received a significant biomass power plant order for our energy business.
Our sales increased 17% in the first half of the year and 25% in the second quarter from the comparison period in 2017. We still had some supply issues in services, which impacted service sales negatively. We are actively working with our suppliers to solve this matter.
The Minerals Processing segment continued to improve its result. The Metals, Energy & Water segment showed progress compared to last year, but remained unprofitable.
We simplified our organizational structure in the second quarter to support our long-term strategic targets. The new structure became operational on July 1. The simplification and good progress in our must-win battles are strengthening our customer focus, service business, product competitiveness and delivery capabilities, which is enabling better profitability.
The market remained positive, and we have good prospects in our sales funnel. Final decisions, particularly regarding large greenfield projects, are still progressing slowly," summarized President & CEO Markku Teräsvasara.
Summary of key figures
|Service order intake||154.3||130.8||18||25||285.0||245.9||16||24||494.9|
|Order backlog at end of period||1,084.9||1,068.2||2||-||1,084.9||1,068.2||2||-||1,005.4|
|Gross margin, %||21.8||22.1||22.3||22.9||23.6|
|Adjusted EBIT3, %||2.3||0.1||2.4||0.2||2.9|
|Net cash from operating activities||-24.4||-0.4||44.2||-34.5||39.6|
|Earnings per share, EUR||-0.04||-0.03||-0.04||-0.06||-0.03|
1 Change, %
2 Change in comparable currencies, %
3 Excluding restructuring and acquisition-related items as well as PPA amortizations.
Financial guidance for 2018 reiterated
The guidance for 2018 is based on the current order backlog as well as expected order intake.
- Sales are expected to be approximately EUR 1.2 - 1.3 billion, and
- Adjusted EBIT* is expected to be approximately 5 - 7%
* Excluding restructuring and acquisition-related items, as well as purchase price allocation amortizations.
This text is a summary of Outotec's January-June 2018 Half year financial report. The full report is available as an attachment to this report.
Markku Teräsvasara, CEO
Tel. +358 20 529 2000
Jari Ålgars, CFO
Tel. +358 20 529 2007
Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname@example.org
Date: July 25, 2018
Time: 2:00 PM EEST
Venue: Outotec House, Rauhalanpuisto 9, Espoo, Finland
Joining the teleconference
To register as a participant for the teleconference and Q&A session, please dial in 5 to 10 minutes before the beginning of the event using the numbers below.
The contact information is gathered for registration purposes only and it is not used for commercial purposes.
Confirmation Code: 128056
FI: +358 9 7479 0359
UK: +44 330 336 9401
SE: +46 8 5033 6546
US: +1 929 477 0338
|Outotec's Half year financial report 2018||Download|