YIT adjusts its operations in Russia

STOCK EXCHANGE RELEASE       JANUARY 26, 2015 AT 11:00 A.M.

 

YIT adjusts its operations in Russia

The plunge of the oil price and ruble with their repercussions have increased the uncertainty of the operating environment in Russia. YIT decreased its apartment start-ups in Russia significantly during the last quarter of 2014 and at the same time, completed several large projects.

Due to the decrease in the production volume, YIT’s operations in Russia will be adjusted and the number of employees is estimated to decrease by approximately 300. The objective of the reorganisation is to increase flexibility and to ensure cost-efficiency and competitiveness in the new market environment. A EUR 3.1 million non-recurring cost will be recorded in the 2014 fourth quarter results related to the restructuring of the Russian operations.

As for new plot investments and apartment start-ups, the plan is to maintain a production volume that will enable profitable business and positive cash flow in all current operating cities. At the same time, the target is to retain good readiness to increase the production when the operating environment allows it.

YIT will publish financial information on the development of the Russian operations in its Financial Statements Bulletin on February 5, 2015.

 

For additional information, please contact:

Sanna Kaje, Vice President, Investor Relations, YIT Corporation, tel. +358 50 390 6750, sanna.kaje@yit.fi
Timo Lehtinen, CFO, YIT Corporation, tel. +358 45 670 0626, timo.lehtinen@yit.fi

 

 YIT CORPORATION

 

Sanna Kaje
Vice President, Investor Relations

 

 

Distribution: NASDAQ OMX, principal media, www.yitgroup.com

 

YIT is a construction industry leader. We create better living environments in Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. Over 100 years of experience have secured for us a strong market position: We are the largest housing developer and one of the largest business premises and infrastructure developers in Finland, and the most significant foreign housing and area developer in Russia.  Our vision is to stay one step ahead – while caring for our customers, partners and personnel. We have more than 6,000 employees in seven countries. In 2013, our revenue amounted to nearly EUR 1.9 billion. Our share is listed on Nasdaq OMX Helsinki. www.yitgroup.com

 

About Us

YIT is the largest Finnish and significant North European construction company. We develop and build apartments, business premises and entire areas. We are also specialised in demanding infrastructure construction and paving. Together with our customers our 10,000 professionals are creating more functional, more attractive and more sustainable cities and environments. We work in 11 countries: Finland, Russia, Scandinavia, the Baltic States, the Czech Republic, Slovakia and Poland. The new YIT was born when over 100-year-old YIT Corporation and Lemminkäinen Corporation merged on February 1, 2018. Our pro forma revenue for 2017 was over EUR 3.8 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com

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