INTERIM REPORT OF THE DESTIA GROUP 01/01–30/06/2010: Profitability increased despite the difficult market situation
- Profitability in the second quarter improved over the previous year despite the decreased turnover.
- The development programme for increasing profitability is proceeding in accordance as planned.
- On 1 April 2010, Destia Ltd purchased the remaining 16 percent of the capital stock of Kaivujyrä Group.
- In June, Destia Ltd sold its traffic information services segment, Destia Traffic, to Mediamobile Nordic.
- The order book is still strong at 908 million euros (921).
- At the turn of the year, ferry services were separated from Destia Ltd through partial demerger.
|Key figures, MEUR||1-6/2010||1-6/2009||4-6/2010||4-6/2009||1-12/2009|
|% of turnover||-2,0||-3,6||-1,0||-1,3||-2,8|
|Result for the period||-6,5||-9,6||-1,9||-2,1||-17,7|
|% of turnover||-3,1||-3,9||-1,6||-1,4||-2,9|
* without Ferry Services 230,5
** without Ferry Services 139,7
President and CEO Hannu Leinonen comments on the period under review:
”Over the course of this year, the economic downturn has diminished the overall demand for infrastructure construction services more than was anticipated. Destia Group’s comparable turnover for the first quarter decreased by 13.5 percent in comparison with the previous year. Despite the difficult market situation, our profitability has seen an increase on the same period in the previous year. As is characteristic of this industry, the operating result is strongest during the third quarter. The progression of the measures that were initiated in 2009 to improve profitability, along with the strong order book, have had a positive impact on the development of the operating result.
Our most significant goal during this year is improving profitability. We will be placing a clear emphasis on domestic infrastructure, roads and tracks and their construction, maintenance, repair and design. In the period under review, we purchased the remaining 16 percent of the capital stock of Kaivujyrä Group. Destia Rail (formerly Maansiirto Veli Hyyryläinen Oy, MVH), which is the subsidiary of the Kaivujyrä Group wholly owned by Destia, specialises in the construction, repair and maintenance of the railway network. It is the foundation of Destia’s railway-related expertise.
We also sold a portion of our operations in late June to Mediamobile, which belongs to the TDF Group. Providing traffic information services is not part of our core business operations. Therefore, giving up this segment was clearly the best decision. Mediamobile can provide Destia Traffic's information services with a worthy international development environment.
Our existing strong order book and profitability improvement measures, which are proceeding as planned, have a positive impact on the prospects for the year 2010 even though estimating the demand late in the year remains a challenge. Due to the market situation, we predict that Destia Group’s 2010 turnover will be lower than in the previous year. Even so, the Group’s 2010 operating result is predicted to be positive.”
Hannu Leinonen, President and CEO, tel. +358 20 444 4000 and
Pirkko Salminen, CFO, tel. +358 50 3022 485
The interim report of the third quarter of the Destia Group will be published on 29 October 2010.