October–December highlights
- Net sales totalled EUR 478.6 (489.7) million, down by 2%.
- Book-to-bill at 1.1 (1.2). Order backlog amounted to EUR 1 703 (1 719) million.
- Operating profit (EBIT) amounted to EUR -8.3 (26.1) million including a net amount of EUR 52.1 million (negative) in one-off items. One-off items include impairments of EUR 33.6 million and restructuring costs of EUR 18.5 million. Operating margin stood at -1.7% (5.3).
- Operating profit excluding one-off items stood at EUR 43.8 (34.2) million, representing an operating margin of 9.2% (7.0).
- Profit after taxes was EUR -18.5 (12.5) million.
- Net cash flow from operations amounted to EUR 60.6 (43.7) million.
- Strategy implementation proceeded on schedule, cost reductions ahead of plan.
January–December highlights
- Net sales amounted to EUR 1 825.3 (1 828.1) million.
- Book-to-bill at 1.0 (1.1).
- Operating profit (EBIT) amounted to EUR 61.3 (98.1) million, including a net amount of EUR 75.8 million (negative) in one-off items. Operating margin stood at 3.4% (5.4).
- Operating profit, excluding one-off items, amounted to EUR 137.1 (117.1) million, up by 17%. Operating margin excluding one-off items stood at 7.5% (6.4) of net sales.
- Profit after taxes was EUR 29.4 (59.9) million.
- Net cash flow from operations amounted to EUR 161.9 (123.2) million.
- Dividend proposal: EUR 0.83 (0.75) per share.
Full-year outlook for 2013
Tieto expects its organic net sales development to be at the level of the IT services market growth, with the exception of weaker outlook in the telecom sector.
Tieto expects its profitability to continue to improve and full-year operating profit (EBIT) excluding one-off items to increase from the previous year’s level (EUR 137.1 million in 2012).
|
10–12/ 2012 |
10–12/ 2011 |
1–12/ 2012 |
1–12/ 2011 |
|
| Net sales, EUR million | 478.6 | 489.7 | 1 825.3 | 1 828.1 |
| Change in net sales, % | -2 | 4 | 0 | 7 |
| Operating profit (EBITA), EUR million | -7.3 | 27.9 | 66.6 | 105.4 |
| Operating margin (EBITA), % | 1.5 | 5.7 | 3.7 | 5.8 |
| Operating profit (EBIT), EUR million | -8.3 | 26.1 | 61.3 | 98.1 |
| Operating margin (EBIT), % | -1.7 | 5.3 | 3.4 | 5.4 |
|
Operating profit (EBIT) excl. one-off items, EUR million |
43.8 | 34.2 | 137.1 | 117.1 |
| Operating margin (EBIT) excl. one-off items, % | 9.2 | 7.0 | 7.5 | 6.4 |
| Profit after taxes, EUR million | -18.5 | 12.5 | 29.4 | 59.9 |
| Net cash flow from operations, EUR million | 60.6 | 43.7 | 161.9 | 123.2 |
| EPS, EUR | -0.26 | 0.18 | 0.41 | 0.84 |
| EPS excl. one-off items, EUR | 0.41 | 0.28 | 1.30 | 1.07 |
| Return on equity, 12-month rolling, % | 5.3 | 10.7 | 5.3 | 10.7 |
| Return on capital employed, 12-month rolling, % | 12.5 | 18.3 | 12.5 | 18.3 |
| Investments, EUR million | 19.3 | 13.8 | 62.9 | 103.6 |
| Interest-bearing net debt, EUR million | 23.9 | 82.7 | 23.9 | 82.7 |
| Gearing, % | 4.3 | 14.6 | 4.3 | 14.6 |
| Net debt/EBITDA | 0.2 | 0.4 | 0.2 | 0.4 |
| Personnel on 31 Dec | 16 537 | 18 123 | 16 537 | 18 123 |
Comment regarding the interim report by Kimmo Alkio, President and CEO:
“I am pleased with our overall operational performance in the fourth quarter. Operating profit for the quarter reflects high one-off items resulting from restructuring activities and divestments, which were necessary steps in creating a scalable and competitive company. The profitability of our underlying business, excluding one-off items, has been improving consistently throughout the year, with a further boost in the fourth quarter. This development was also reflected in our strong cash flow. During the past year, we have taken major steps forward in transforming Tieto into a more customer-centric, agile and cost-efficient company.
During the past quarter, we launched highly attractive and competitive cloud capacity services, which deliver rapid returns for our customers and support our intent of adopting the best technologies for our customers’ benefit. This is a good step forward in becoming a proactive partner for our customers.
In the latter part of the year, we were able to complete two significant divestments in Italy and Spain and prepared the divestment of our German and Dutch operations, which will contribute to creating a more focused Tieto.
During 2013, we look forward to continued solid execution of our strategy and strengthening our position as a highly trusted partner both in IT services and product engineering.”
FINANCIAL PERFORMANCE IN OCTOBER–DECEMBER
Financial performance by market unit
|
Net sales Q4/2012, EUR million |
Net sales Q4/2011, EUR million | Change, % | Operating margin Q4/2012, % |
Operating margin Q4/2011, % |
||
| Finland and the Baltic countries | 205 | 202 | 2 | 10.3 | 11.9 | |
| Scandinavia | 143 | 147 | -2 | 5.4 | 1.6 | |
| Central Europe & Russia | 31 | 36 | -13 | -71.7 | -18.9 | |
| Global Accounts | 166 | 185 | -10 | -6.1 | 5.2 | |
| Group elimination | -67 | -80 | ||||
| Total | 479 | 490 | -2 | -1.7 | 5.3 | |
Operating profit excluding one-off items by market unit
|
Operating profit excl. one-off items Q4/2012, EUR million |
Operating profit excl. one-off items Q4/2011, EUR million |
Operating margin excl. one-off items Q4/2012, % |
Operating margin excl. one-off items Q4/2011, % |
||
| Finland and the Baltic countries | 24.7 | 24.6 | 12.0 | 12.2 | |
| Scandinavia | 11.5 | 2.4 | 8.0 | 1.6 | |
| Central Europe & Russia | -2.7 | -5.3 | -8.5 | -14.7 | |
| Global Accounts | 15.1 | 15.3 | 9.1 | 8.3 | |
|
Steering Functions and Group Management |
-4.8 |
-2.8 |
|
|
|
| Total | 43.8 | 34.2 | 9.2 | 7.0 | |
For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen(at)tieto.com
Pellervo Hämäläinen, Vice President, Communications and IR, tel. +358 2072 52729, +358 4067 45257, pellervo.hamalainen(at)tieto.com
Tanja Lounevirta, Head of Financial Communications, tel +358 2072 71725, +358 50 321 7510, tanja.lounevirta(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 largest Nordic IT services company providing full life-cycle services for both private and public sectors. The company has global presence through its product engineering business and the global delivery centers. Tieto is committed to develop enterprises and society through IT by realizing new opportunities in customers’ business transformation. At Tieto, we believe in professional development and results.
Founded 1968, headquartered in Helsinki, Finland and with approximately 17 000 experts, the company operates in over 20 countries with net sales at approximately EUR 1.8 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.
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
