PROFIT WARNING: TELESTE LOWERS ITS GUIDANCE FOR 2022
TELESTE CORPORATION INSIDER INFORMATION 16 JUNE 2022 AT 19:00 EET
PROFIT WARNING: TELESTE LOWERS ITS GUIDANCE FOR 2022
The external business environment of the company has become substantially more challenging that earlier expected. This has resulted in increased uncertainty in forecasting the business development in the coming months. Teleste Corporation lowers its guidance for 2022, based on delivery problems caused by material and component shortage, as well as increased inflation and costs.
New guidance for the 2022 outlook
Teleste estimates that net sales in 2022 will reach the level of net sales of 2021 and that the adjusted operating result in 2022 will remain significantly below the adjusted operating result of 2021. Net sales in 2021 were EUR 144.0 million, and the adjusted operating result was EUR 5.5 million.
Worsened component shortage, increasing costs and strengthened USD exchange rate have a significant adverse effect on company’s operations and results.
Previous guidance for the 2022 outlook, published 5 May 2022
Teleste estimates that net sales in 2022 will exceed the net sales of 2021 and that the adjusted operating result in 2022 will exceed the adjusted operating result of 2021. Net sales in 2021 were EUR 144.0 million, and the adjusted operating result was EUR 5.5 million.
The indirect impacts of war in Ukraine, worsening component shortage and rising inflation may have an adverse effect on company’s operations.
Corrective measures
The company has initiated several measures to improve profitability. These measures focus on improving delivery capability and increasing delivery volumes, passing on rising material costs to customer prices with determination, and adjusting project delivery costs and operating expenses. These measures are expected to have an impact from the end of the current fiscal year onwards. The company has also launched a program to further sharpen its strategy and improve profitability.
TELESTE CORPORATION
Esa Harju
CEO
ADDITIONAL INFORMATION: Esa Harju, tel. +358 2 2605 611
DISTRIBUTION:
Nasdaq Helsinki
Main Media
www.teleste.com