Destia Group’s Interim Report for January-March 2011: The turnover remained at the same level as in the previous year, despite the challenging market situation
- Turnover remained at the same level as in the previous year
- The operating result was burdened by individual project impairments
- Cash flow strengthened
- The order book decreased to MEUR 718.6
- In March, Destia signed a surfacing business transaction with NCC
- Destia estimates that turnover will decrease in 2011 and that the operating result will remain at the same level as last year
|Profit/loss for the period||Me||-7.7||-4.6||8.3|
|Profit/loss for the period||%||-8.6||-5.1||1.5|
President and CEO Hannu Leinonen comments on the report period:
“Destia Group’s turnover for the first quarter was the same as in the previous year despite the downtrend of the infrastructure industry’s overall market. Considering the market situation, our turnover was at a satisfactory level. Due to low volumes, our operating result was negative as is typical of the winter period. The result is also encumbered by the impairments of individual projects. The operating result will show as income to a greater degree during the third quarter of the year.
In accordance with our strategy 2011-2013, the improvement of profitability remains our central target, together with the strengthening of our core business activities and the development of customer service. The surfacing business transaction we made during the report period supports our strategy to focus on strengthening our core business operations. By relinquishing the surfacing operations, we fortify our balance sheet and create better conditions for developing our core business activities. In order to improve our project activities, a development programme was launched at the beginning of the year with the aim of enhancing the consistency of project risk control, project control and management, and types of action.
The overall market of the infrastructure industry is showing a downward trend, and during the current year no growth is expected in the sectors that are in Destia’s service range. We do believe, however, that the market prospect will be better next year, when large new constructions projects will be in full swing.
Due to the market prospect, we estimate that our turnover will not reach that of last year. On account of the measures we have taken to improve profitability, our cost structure is better, which is why we believe our relative profitability will improve and our operating result will be at the same level as in the previous year.”
Additional information: President and CEO Hannu Leinonen, tel. 020 444 4000, and Head of Economics and Financing Pirkko Salminen, tel. 050 3022 485
Destia Group’s Interim Report for the second quarter of 2011 will be published on 29 August 2011.