INTERIM REPORT OF THE DESTIA GROUP 1/1–30/9/2010: Profitability continued to increase despite the difficult market situation
- Profitability improved from the previous year despite the reduced turnover
- The development programme for increasing profitability is proceeding in accordance as planned
- The order book is still strong at 839 million euros (817)
- The board of Destia ratified the new company strategy and financial targets for the strategic period 2011–2013
- The Kemi section of National Road 4 project was completed and awarded as the best construction project of 2010 in Northern Finland
- At the turn of the year, ferry services were separated from Destia Ltd through a partial demerger
|Key figures, MEUR||1-9/2010||1-9/2009||7-9/2010||7-9/2009||1-12/2009|
|% of turnover||2,0||0,7||6,8||5,9||-2,8|
|Profit/loss for the period||4,6||0,8||11,1||10,4||-17,7|
|% of turnover||1,2||0,2||6,2||5,0||-2,9|
|Order book at the end of the period||839,0||817,3||753,3|
* excluding ferry services 427,7
** excluding ferry services 197,2
Managing Director Hannu Leinonen comments on the period under review:
"The infrastructure construction market is still challenging; the overall demand has decreased more than anticipated this year. Moreover, the large state infrastructure projects will primarily show their effect on the market situation between 2012 and 2013.
Destia Group’s comparable turnover for the third quarter decreased by 9.2 per cent compared to the same period last year. Our company’s profitability in the reporting period has improved despite the tough market situation. As is characteristic of this industry, the operating result is strongest during the third quarter. Our strong order book and the measures that were initiated last year to improve profitability and competitiveness have had a positive impact on the development of the operating result.
Our most important goal this year is to improve profitability. We will place a clear emphasis on strengthening the profitability of domestic infrastructure, roads and rails, and their construction, maintenance and repair. Last year, we adapted our operations to the market situation. As demand continues to fall, we will need to further adapt our operations during 2010, paying particular attention to the development of our cash flow.
During the period under review, we prepared the strategy of the Destia Group for 2011–2013. The focus area of the strategy is improving business profitability and strengthening the company’s position in its core business areas. 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."
Prospects for 2010
Over the course of this year, the economic downturn has reduced the overall demand for the types of infrastructure construction services provided by Destia more than was anticipated. In addition, the large state infrastructure projects will primarily show their effect on the market situation between 2012 and 2013. Demand for infrastructure projects in late 2010 is estimated to remain scarce.
However, Destia’s existing strong order book and the measures for improving profitability that were started in 2009 and 2010 have a positive effect on the prospects of 2010.
Due to the market situation, Destia Group’s 2010 turnover is estimated to be lower than in the previous year. The Group’s 2010 operating result is predicted to be positive.
President and CEO Hannu Leinonen, tel. +358 20 444 4000 and Head of Economics and Financing Pirkko Salminen, tel. +358 50 3022 485
Destia Group’s accounts for 2010 will be released on 18/2/2011.