DESTIA GROUP FINANCIAL STATEMENTS 1 JANUARY – 31 DECEMBER 2010: Profitability improved
- Profitability improved during the 2010 financial year: the business result rose to MEUR 8.3
- The development programme aimed at improving profitability achieved the set objectives
- Destia’s Board of Directors ratified the new company strategy and financial targets for the stra-tegic period 2011–2013
- At the turn of the year (2009–2010), ferry services were separated from Destia Ltd through a partial demerger
|Key figures, MEUR||1-12/2010||1-12/2009||10-12/2010||10-12/2009|
|% of turnover||1,5||-2,8||0,3||-13,2|
|Result for the period||8,3||-17,7||3,7||-18,4|
|% of turnover||1,5||-2,9||2,5||-12,0|
|Order book end of the period||726,5||753,3|
* without Ferry Services 572,7
** without Ferry Services 144,9
Hannu Leinonen, President & CEO, commented on the financial year:
“Last year, the prospects for the business cycle in infrastructure-based construction within Destia’s traditional fields were weak during the entire year. Our main objective in 2010 was improvement in the profitability of our operations. We succeeded in this despite the sustained difficulty in the market con-ditions. Demand in the “infra” market in Destia’s traditional fields declined during the financial year even more than anticipated. Our comparable turnover declined 5.8 per cent to MEUR 539.2. How-ever, thanks to our strong order book and the development programme aimed at profitability and competitiveness, our operating profit improved to MEUR 8.3. This positive development in profit is, above all, the result of successfully slashing the burden imposed by our fixed costs. Cost-cutting re-quired substantial personnel reductions.
Last year, we prepared Destia Group’s strategy for the years 2011–2013. Improvement in profitability remains the pivotal objective of our new strategy, together with the strengthening of our core opera-tions and the betterment of our customer service. Our target – based on our vision – is to offer the best customer service and be one of the most profitable infrastructure service companies in Finland by 2015.
In 2011, we anticipate that the market situation in the infrastructure field will still remain difficult – nor do we expect growth, with the exception of our mining activity. We look forward to a recovery in 2012, when, for instance, two major Public Private Partnership (PPP) projects will be in full swing.
In order to ensure operational cost-effectiveness, we switched at the beginning of the current year in infra construction and maintenance to the regional operational model. By raising the utilization rate of our regional resources in this way, we can also offer services more competitively than before. By con-centrating on improving the profitability of our core business and on customer services, we are creat-ing a strong foundation for our operations, on the basis of which we can build something new in the years to come.
Due to the market situation we estimate that our turnover will be lower than for the previous year, but the measures for improving profitability shall exert a positive impact to our relative profitability and our business profit for the Group will be on the level of the previous year.”
Further information is provided by:
President & CEO Hannu Leinonen, tel. +358 20 444 4000 and Head of Economics and Financing Pirkko Salminen, tel. +358 50 3022 485
Destia Group’s Interim Report for the first quarter of 2011 will be published on 29 April 2010.