Outotec's interim report January-March 2017
OUTOTEC OYJ INTERIM REPORT MAY 4, 2017 AT 1:00 PM
INTERIM REPORT JANUARY-MARCH 2017
Significantly improved order intake
"Our first quarter order intake improved significantly from the comparison period in 2016. The improvement reflects the more positive market sentiment in the mining industry but also the low order intake in the comparison period. In addition to equipment orders in minerals processing, we got some larger plant orders in metals refining. We were also able to increase our service order intake by 13%. Our profitability improved following savings on fixed costs and higher sales volumes, but cash flow remained negative due to the backlog of mature orders.
Our new organization, with a dedicated Services business unit operational since April 1, helps us to further strengthen our capabilities in serving our customers and winning new orders. We will continue working to restore the Metals, Energy & Water segment's profitability and review our product portfolio and strategy during the forthcoming months. Although our order intake improved significantly from last year, and sentiment in the mining market has improved, the timing of large plant orders is difficult to foresee," summarizes President & CEO Markku Teräsvasara.
Summary of key figures | Q1 | Q1 | Change | Change in | Q1-Q4 |
| EUR million | 2017 | 2016 | % | comp. curr. % | 2016 |
| Order intake | 318.4 | 170.2 | 87 | 83 | 1,007.7 |
| Service order intake | 115.1 | 101.9 | 13 | 8 | 443.3 |
| Order backlog at end of period | 1,051.2 | 1,004.5 | 5 | - | 1,002.1 |
| Sales | 267.7 | 239.8 | 12 | 7 | 1,057.9 |
| Service sales | 98.7 | 114.1 | -13 | -18 | 447.0 |
| Gross margin, % | 23.4 | 24.3 | 22.1 | ||
| Adjusted EBIT1 | 1.2 | -4.8 | -23.0 | ||
| Adjusted EBIT1, % | 0.4 | -2.0 | -2.2 | ||
| EBIT | -0.8 | -12.3 | -67.7 | ||
| EBIT, % | -0.3 | -5.1 | -6.4 | ||
| Net cash from operating activities | -34.1 | -33.6 | -84.6 | ||
| Earnings per share, EUR | -0.03 | -0.07 | -0.42 |
1 Excluding restructuring and acquisition-related costs and PPA amortizations.
Financial guidance for 2017 reiterated in Q1
The guidance for 2017 is based on the current order backlog and market outlook, as well as achieved cost savings.
- Sales are expected to be approximately EUR 1,050-1,150 million, and
- Adjusted EBIT* is expected to be approximately 3-5%
* Excluding restructuring and acquisition-related costs, as well as purchase price allocation amortizations.
This text is a summary of Outotec's January-March 2017 Interim Report. The full report is available as an attachment to this report.
FURTHER INFORMATION
Outotec Oyj
Markku Teräsvasara, CEO
Tel. +358 20 529 211
Jari Ålgars, CFO
Tel. +358 20 529 2007
Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname@outotec.com
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