Consolidated Earnings and Balance Sheet
The world economy has been in recession since 2001. The Jaakko Pöyry Group's clients, as well as the Group's own business, were affected by the economic weakness. Consolidated net sales decreased by 5.7 per cent to EUR 407.0 (the previous year's figure 431.8) million. The operating profit amounted to EUR 18.4 (28.0) million, which equals 4.5 (6.5) per cent of net sales. Taking into account the economic recession, the Group's operating profit was satisfactory, though still below the target for 2002. Earnings per share were EUR 0.90 (1.30).
The target for the Group's return on investment is 20 per cent; in 2002 the return on investment was 14.5 (21.2) per cent.
The consolidated balance sheet is healthy. The equity ratio rose to 51.0 (48.9) per cent. The Group's liquidity remained good during the financial year. The net debt/equity ratio (gearing) was -5.6 (-3.0) per cent.
Prospects
In view of current political uncertainties, the market situation and economic prospects will be challenging in 2003. However, the Jaakko Pöyry Group's market position, order stock and balance sheet are good. The Group's cost structure improved in 2002 as a result of streamlining actions. Based on the business group's prospects and the Group's order stock, consolidated earnings are expected to improve in 2003 provided that the general economic cycle does not further decline. The earnings improvement will take place in the second half of the year as some of the recently received major assignments will improve capacity utilisation from the second quarter onwards.
The Auditors' Report is dated February 6, 2003.
Events After the Balance Sheet Date
Nordisk Renting Oy, a subsidiary of Nordea, has on February 5, 2003 bought Jaakko Pöyry Group Oyj's headquarter property at Vantaa, Finland. The deal is a continuation of Jaakko Pöyry Group Oyj's effort to focus its financial resources on the company's core business, consulting and engineering. The deal improves the Jaakko Pöyry Group's profit before extraordinary items for 2003 by about EUR 11 million. The Group's net debt/equity ratio (gearing) improves from -5.6 per cent to about -21 per cent. The profit from the deal is not taken into account in the expected earnings stated in the future prospects above.
Dividend
The Board of Directors of Jaakko Pöyry Group Oyj proposes to the Annual General Meeting that a dividend of EUR 0.60 be paid per share for the financial year ended December 31, 2002. The dividend is payable on March 17, 2003.
Annual General Meeting
Jaakko Pöyry Group Oyj's Annual General Meeting of shareholders will be held on March 5, 2003 at the Pöyry House, Vantaa, Finland.
A complete invitation to the Annual General Meeting will be published as a separate notice on February 7, 2003 at 9.00 a.m. Finnish time.
Enclosures
Board of Directors' report for the financial year ended December 31, 2002
Consolidated statement of income and balance sheet, and contingent liabilities
Key figures for the Group
JAAKKO PÖYRY GROUP OYJ
Erkki Pehu-Lehtonen
President and CEO
Teuvo Salminen
Deputy to President and CEO
The full report including tables can be downloaded from the following link:
