DESTIA GROUP’S INTERIM REPORT FOR JANUARY–JUNE 2012: Operating result improved, and the positive development of revenue and cash flow continued
- Revenue increased by 10.3% on the previous year to MEUR 216.5.
- Operating result was clearly better than the previous year at MEUR 4.1 (-3.4).
- The strongly positive development of cash flow continued.
- The Group prematurely amortised its MEUR 30 loan.
- The comparable order book increased by 12.1% to MEUR 751.2 (670.1).
- Destia forecasts that the revenue for the full year will increase slightly over the previous year, and that the operating result will be clearly positive.
President & CEO Hannu Leinonen comments on the report period:
“The civil engineering market will be better than last year from a point of view of Destia’s range of services. We expect that last year’s rise in costs will level out. There is uncertainty involved in, for example, the costs of oil-based commodities. Demand in the infrastructure sector is expected to remain steady in the coming year, with major projects ongoing, and also some starting up.
The operating result for the report period was MEUR 7.5 greater than the corresponding period the previous year at MEUR 4.1. The volume of business has increased, and the profitability of projects has improved. In the first quarter, however, the profitability of maintenance contracts was encumbered by the exceptional temperature variations during the winter and by the large amount of snow. In the second quarter, poor margins for track maintenance contracts depressed the consolidated operating result for the report period.
The core of our strategy continues to be the improvement of business profitability and the strengthening of our position in core operations. Destia will continue to focus on risk management in tendering and on work with customers, as well as continuing the improvement in the efficiency of support processes.
Destia’s order book has clearly grown since last year. Measures aimed at improving profitability are positively affecting the prospects for 2012. The consolidated cash flow has continued to develop positively, supporting the idea that the profitability of core business projects has improved on average. It is forecast that the 2012 revenue of the Destia Group will increase slightly over the previous year and that the operating result will be clearly positive.”
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 third quarter of 2012 will be published on 30 October 2012.