TIETO’s interim report 4/2011 (January–December) and financial statements bulletin 2011 – Financial performance as expected and solid order intake in the fourth quarter
October–December highlights
- Net sales totalled EUR 489.7 (472.2) million, an increase of 4%.
- Order intake at EUR 601 (581) million. Order backlog at EUR 1 719 (1 574) million at the end of the period.
- Operating profit (EBIT) amounted to EUR 26.1 (6.4) million, representing an operating margin of 5.3% (1.4).
- Operating profit excluding one-off items was EUR 34.2 (33.5) million, representing an operating margin of 7.0% (7.1).
- Profit after taxes was EUR 12.5 (1.4) million.
- Net cash flow from operations amounted to EUR 43.7 (72.4) million.
January– December highlights
- Net sales totalled EUR 1 828.1 (1 713.7) million, an increase of 7%.
- Order intake was EUR 1 974 (2 030) million.
- Operating profit (EBIT) amounted to EUR 98.1 (72.4) million, representing an operating margin of 5.4% (4.2).
- Operating profit, excluding one-off items, amounted to EUR 117.1 (110.0) million, 6.4% (6.4) of net sales.
- Profit after taxes was EUR 59.9 (49.5) million.
- Net cash flow from operations amounted to EUR 123.2 (142.9) million.
- Dividend proposal: EUR 0.75 (0.70) per share.
Outlook for 2012
For 2012, Tieto expects its net sales to develop in line with the anticipated growth rate for the Western European IT services market, i.e. 0–2%. Full-year operating profit (EBIT) excluding one-off items is expected to be above the previous year’s level (EUR 117.1 million in 2011).
| Q4/2011 | Q4/2010 |
1–12/ 2011 |
1–12/ 2010 | |||||
| Net sales, EUR million | 489.7 | 472.2 | 1 828.1 | 1 713.7 | ||||
| Change in net sales, % | 4 | 7 | 7 | 0 | ||||
| Operating profit (EBITA), EUR million | 27.9 | 8.3 | 105.4 | 80.0 | ||||
| Operating margin (EBITA), % | 5.7 | 1.8 | 5.8 | 4.7 | ||||
| Operating profit (EBIT), EUR million | 26.1 | 6.4 | 98.1 | 72.4 | ||||
| Operating margin (EBIT), % | 5.3 | 1.4 | 5.4 | 4.2 | ||||
|
Operating profit (EBIT) excl. one-off items, EUR million |
34.2 | 33.5 | 117.1 | 110.0 | ||||
| Operating margin (EBIT) excl. one-off items, % | 7.0 | 7.1 | 6.4 | 6.4 | ||||
| Profit after taxes, EUR million | 12.5 | 1.4 | 59.9 | 49.5 | ||||
| Net cash flow from operations, EUR million | 43.7 | 72.4 | 123.2 | 142.9 | ||||
| EPS, EUR | 0.18 | 0.02 | 0.84 | 0.69 | ||||
| Return on equity, 12-month rolling, % | 10.7 | 9.2 | 10.7 | 9.2 | ||||
| Return on capital employed, 12-month rolling, % | 18.3 | 15.1 | 18.3 | 15.1 | ||||
| Investments, EUR million | 13.8 | 29.3 | 103.6 | 101.4 | ||||
| Interest-bearing net debt, EUR million | 82.7 | 51.8 | 82.7 | 51.8 | ||||
| Gearing, % | 14.6 | 9.3 | 14.6 | 9.3 | ||||
| Personnel on 31 Dec | 18 123 | 17 757 | 18 123 | 17 757 | ||||
Kimmo Alkio, President and CEO:
“At the end of 2011, our financial performance was in line with expectations while below our targets. Our net sales in the final quarter grew by 4% (7% growth in the full year) and profitability improved slightly from last year. We are pleased with the strong order intake, which recovered after a challenging third quarter. Our overall performance in the fourth quarter gives us a good starting point for 2012.
From the Market Unit perspective, the best development was seen in Finland and the Baltic countries where the fourth-quarter net sales were up 3% and EBIT was at 12%. In Scandinavia, double-digit growth continued, and order intake was very strong. Profitability, however, was down partly due to the data centre incident in Sweden. Central Europe & Russia continues to struggle, and we need to improve our performance, especially in Germany and Russia.
One of my main tasks during my first months with Tieto has been to set clear operational priorities for 2012. I believe that by paying close attention to quality and customer-specific service experience, we can ensure that our customers will have even greater confidence in Tieto as a high-quality IT services partner. In addition, we are placing high attention on introducing new services, improving profitability and investing in employee skills development.
Despite the economic uncertainty, we are starting the year with a healthy order backlog, we have announced a number of high value customer contracts and the opportunity funnel is good. We have set clear priorities for the current year, and have strong drive and commitment in the company to make 2012 a success.”
FINANCIAL PERFORMANCE IN OCTOBER–DECEMBER
Financial performance by market unit
|
Net sales Q4/2011, EUR million |
Net sales Q4/2010, EUR million | Change, % | Operating margin Q4/2011, % | Operating margin Q4/2010, % | ||
| Finland and the Baltic countries | 202 | 197 | 3 | 11.9 | 8.5 | |
| Scandinavia | 147 | 134 | 10 | 1.6 | 5.7 | |
| Central Europe & Russia | 36 | 33 | 9 | -18.9 | -42.7 | |
| Global Accounts | 185 | 189 | -2 | 5.2 | 6.3 | |
| Group elimination | -80 | -81 | -1 | |||
| Total | 490 | 472 | 4 | 5.3 | 1.4 | |
DIVIDEND PROPOSAL
The distributable funds of the Parent company amount to EUR 770 783 210.84 of which net profit for the current year amounts to EUR 10 756 115.46. The Board of Directors proposes a dividend of EUR 0.75 (0.70) per share for 2011. The proposed dividend payout does not endanger the solvency of the company.
For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at) tieto.com
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358 2072 68711,
+358 50 522 0924, reeta.kaukiainen (at) tieto.com
Press conference for analysts and media will be held at Tieto’s premises in Helsinki, address: Aku Korhosen tie 2‑6, at 2.30 pm EET (1.30 pm CET. 12.30 pm UK time). The results will be presented in English by Kimmo Alkio, President and CEO.
The conference will be webcasted and published live on Tieto's website www.tieto.com and there will be a possibility to present questions online. An on-demand video will be available after the conference.
Tieto publishes financial information in English, Finnish and Swedish. All releases are posted in full on Tieto's website as soon as they are published.
TIETO CORPORATION
DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media
Tieto is the leading IT service company in Northern Europe providing IT and product engineering services. Our highly specialized IT solutions and services complemented by a strong technology platform create tangible business benefits for our local and global customers. As a trusted transformation partner, we are close to our customers and understand their unique needs. With about 18 000 experts, we aim to become a leading service integrator creating the best service experience in IT, www.tieto.com
Tieto Corporation
Business ID: 0101138-5
Aku Korhosen tie 2−6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Fax +358 2072 68898
Registered office: Helsinki
E-mail: info@tieto.com
www.tieto.com
Attachments:
Tieto Q4-2011 Interim report.pdf
