Home News 2007 January - December 2006 Financial statements review
Stock Exchange Release February 5, 2007 01:30:00 PM CET

January - December 2006 Financial statements review

OUTOKUMPU TECHNOLOGY OYJ STOCK EXCHANGE RELEASE FEBRUARY 5, 2007 AT 1:30 PM


JANUARY - DECEMBER 2006 FINANCIAL STATEMENTS REVIEW


Strong demand for minerals and metals processing technologies and products continued in 2006. Outokumpu Technology achieved 33% annual sales growth and 112% operating profit growth for the period.


Highlights of the reporting period (Q1-Q4) and the fourth quarter (Q4):
 
- Order intake grew by 52% from the previous year totaling EUR 1,032.2 million (Q1-Q4/2005: EUR 678.5 million). The fourth quarter order intake totaled EUR 235.3 million (Q4/2005: EUR 259.8 million).
- Order backlog was EUR 866.4 million (December 31, 2005: EUR 596.0 million), up 45%.
- Sales for Q1-Q4 2006 came to EUR 740.4 million (Q1-Q4/2005: EUR 556.2 million). Sales amounted to EUR 239.6 million in the fourth quarter (Q4/2005: EUR 206.4 million).
- Operating profit improved by 112% to EUR 51.6 million (Q1-Q4/2005: EUR 24.3 million), with EUR 23.0 million generated in the fourth quarter (Q4/2005: EUR 22.2 million). Profit before taxes amounted to EUR 56.6 million (Q1-Q4/2005: EUR 25.6 million). Earnings per share were EUR 0.88 for the reporting period (Q1-Q4/2005: EUR 0.39).
- Net cash flow from operating activities totaled EUR 67.8 million (Q1-Q4/2005: EUR 80.2 million).
- The Board of Directors will propose a dividend of EUR 0.35 per share for 2006.


CEO, Tapani Järvinen:
"We were able to benefit from the growth in global metals demand and enjoyed an extremely good year. Our customers in the mining and metallurgical industry invested in modernization and expansions, new production plants, and new technologies, taking our order intake to record heights. Our sales grew by 33 percent in 2006, which further strengthened our market share, particularly for iron ore sintering and pelletizing technologies. We set new records in relation to key business indicators - orders, sales, and profits. It was also delightful to see the fruits of our extensive R&D work when the customers invested in our new hydrometallurgical technologies. In addition, we met all our financial targets in 2006. The operating profit margin moved up some three-percentage points from the previous year's level and was 7 percent in 2006. The balance sheet remained strong as well, and our earnings per share more than doubled from 2005. The listing of Outokumpu Technology on the Helsinki Stock Exchange was a great success from both the company's point of view and that of our shareholders."




OUTLOOK FOR 2007  
The mining and metals industry remains robust and the underlying supply and demand imbalance encourages the industry to invest both in greenfield projects and expansions. Outokumpu Technology's strong existing and growing order backlog provides a solid base for 2007. Due to the timing issues in certain projects, some projects that were assumed to become effective during the fourth quarter of 2006, and strengthen the existing backlog even further, are expected to be closed during the first quarter of 2007. Management is confident that the company has the resources and capacity to meet the expected further growth in its market in 2007. 


In 2007, the management expects similar sales growth than during 2006. Operating profit will grow clearly from 2006.


The complete January-September 2006 Financial Statements Review can be downloaded at http://www.outokumputechnology.com/presentations.


For further information, please contact:


Outokumpu Technology Oyj
Tapani Järvinen, CEO
tel. +358 20 529211


Vesa-Pekka Takala, CFO
tel. +358 20 529211, mobile +358 40 5700074


Eila Paatela, Vice President - Corporate Communications
tel. +358 20 5292004, mobile +358 400 817198


Rita Uotila, Vice President - Investor Relations
tel. +358 20 5292003, mobile +358 400 954141


e-mails: firstname.lastname (at) outokumputechnology.com


Briefing for analystS and media
Welcome to a briefing at which CEO Tapani Järvinen and CFO Vesa-Pekka Takala will present the fourth quarter and financial statements 2006.


BRIEFING
Date: Monday, February 5, 2007
Time: 3.30 pm (GMT+2)
Venue: Hotel Marski, Meeting room Carl, Mannerheimintie 10, Helsinki, Finland 


JOINING THE BRIEFING VIA AUDIO WEBCAST
You may also follow the briefing from a live audio webcast at www.outokumputechnology.com/presentations. Please, click in and register approximately 5 to 10 minutes before the briefing.


JOINING THE BRIEFING VIA TELECONFERENCE
You may also join the briefing by telephone. To register as a participant for the teleconference, please dial in 5 to10 minutes before the beginning of the event:


FI/UK: +44 20 7162 0125
US/CANADA: +1 334 323 6203
Password: Outokumpu Technology


In addition, an instant replay service of the conference call will be available until Thursday February 8, 2007 on the following numbers:


FI/UK: +44 20 7031 4064
US/CANADA: +1 954 334 0342
Pin code: 736463


The contact information is gathered for registration purposes only and it is not used for commercial purposes.


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www.outokumputechnology.com
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