Correction: Inside information: YIT lowers its guidance for the year 2023 due to a decline in fair values and provides preliminary financial information for the fourth quarter of 2023
YIT Corporation Inside Information 12 January 2024 at 3:16 p.m.
Correction: Inside information: YIT lowers its guidance for the year 2023 due to a decline in fair values and provides preliminary financial information for the fourth quarter of 2023
YIT announced today at 1.15 p.m. in its insider information release the lowering of the guidance and at the same time provided preliminary financial information for the fourth quarter of the financial year 2023.
The release incorrectly stated that YIT expects the fourth quarter 2023 revenue to be approximately EUR 2,150 million. The correct figure is EUR 590 million. The sentence after the correction is:
YIT expects the fourth quarter 2023 revenue to be approximately EUR 590 million and the operating cash flow after investments to be strong at over EUR 50 million.
In addition, the company specifies the statement related to Business Premises’ and Infra’s adjusted operating profit so that the segments improved their results compared to the comparison period before taking into account the changes in fair values.
Below the corrected release in full.
Inside information: YIT lowers its guidance for the year 2023 due to a decline in fair values and provides preliminary financial information for the fourth quarter of 2023
YIT lowers its guidance for Group adjusted operating profit for continuing operations for the financial year 2023 published on 21 April 2023.
New guidance for the financial year 2023:
YIT expects its Group adjusted operating profit for continuing operations to be EUR 36-42 million in the financial year 2023 (2022: EUR 110 million).
Reasons for the new guidance:
In its outlook for the financial year 2023, YIT notes that rising interest rates may have a negative impact on the fair value of investments. Mainly as a result of an increase in yields, YIT recognises declines in fair values on its equity investments measured at fair value and investment properties measured at fair value owned by associated companies and joint ventures, totaling approximately EUR 13 million. The most significant part of the change in fair values relates to the investment in Tripla Mall. The entries will lower the adjusted operating profit for YIT's continuing operations in the last quarter of 2023.
Previous guidance for the financial year 2023:
YIT expects its Group adjusted operating profit for continuing operations to be lower than in 2022, but at least EUR 50 million (2022: EUR 110 million).
Preliminary financial information for the fourth quarter of 2023
YIT expects the fourth quarter 2023 revenue to be approximately EUR 590 million and the operating cash flow after investments to be strong at over EUR 50 million. Both of the company's contracting segments, Business Premises and Infrastructure, improved their results compared to the comparison period before taking into account the changes in fair values. The housing business continued to be affected by the weak market conditions in Finland.
The financial figures stated in this release are preliminary and unaudited as the financial statements process is still ongoing. YIT will publish its Financial Statements Bulletin 2023 on Friday, 9 February 2024.
For further information:
YIT Investor Relations, investorrelations@yit.fi
Media enquiries through Group Communications, tel. +358 44 743 7536, press@yit.fi
YIT Corporation
Tuomas Mäkipeska
CFO
Distribution: Nasdaq Helsinki, principal media, www.yitgroup.com
YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, and infrastructure for smooth mobility. We employ around 5,000 professionals in eight countries: Finland, Sweden, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2022 was EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com