OUTOTEC OYJ INSIDE INFORMATION DECEMBER 10, 2019 AT 6:21 PM
Outotec lowers its sales guidance for 2019 due to announced intention to divest three businesses, and delays in certain already received and anticipated orders
Outotec’s Board of Directors has today revised the company’s sales guidance for 2019 due to the announced intentions to divest three businesses in the Metals, Energy & Water segment (Stock Exchange Release on December 10, 2019), and delays in certain received and anticipated orders leading to lower sales recognition.
The businesses to be divested will be classified as discontinued operations in Outotec’s 2019 results. For the financial year 2019, the intended actions will lower the expected sales by approximately EUR 50 million but increase the adjusted EBIT* by approximately EUR 40 million. The restated comparable sales for the financial year 2018 would have been approximately EUR 1,200 million, EUR 80 million lower from the 2018 reported sales. The restated adjusted EBIT* for 2018 would have increased by EUR 20 million to approximately EUR 84 million (excluding provision for the ilmenite smelter project).
New financial guidance for 2019 for the continuing operations
Based on the current market outlook, and the announced intention to divest three businesses in the Metals, Energy & Water segment, whereby these businesses will be classified as discontinued operations, the sales is expected to be flat compared to the restated 2018 sales and adjusted EBIT* will increase significantly from the restated 2018 adjusted EBIT* of approximately EUR 84 million, excluding provision for the ilmenite smelter project.
Previous financial guidance for 2019
Based on the current market outlook, we expect sales to increase, and adjusted EBIT* to increase significantly from the 2018 adjusted EBIT* (EUR 63.8 million), excluding provision for the ilmenite smelter project.
*Excluding restructuring- and acquisition-related items, as well as PPA amortizations.
Board of Directors
Markku Teräsvasara, CEO
Tel. +358 20 529 2000
Jari Ålgars, CFO
Tel. +358 20 529 2007