Inside information: YIT has completed the strategic review of its infrastructure business in Sweden; closes down the operations in Sweden
YIT Corporation Inside Information 8 January 2024 at 3:45 p.m.
Inside information: YIT has completed the strategic review of its infrastructure business in Sweden; closes down the operations in Sweden
YIT has completed the strategic review of its Swedish infrastructure business, which was announced on 20 June 2023. As a result of the review, YIT has decided to close down its infrastructure business in Sweden. In connection with the decision, YIT will recognize a negative booking of EUR 16 million in profit for the fourth quarter of the financial year 2023, related to the decision to close down the operations and its implications to the margin forecasts of the ongoing projects. The business to be closed down will be recorded in EBIT adjusting items from the beginning of the fourth quarter of the financial year 2023 and the booking will have no impact on YIT’s guidance for the financial year 2023.
The company will initiate change negotiations in the Swedish infrastructure business in connection with the decision. There are approximately 125 employees in the scope of the negotiations.
The infrastructure business in Sweden accounted for approximately 4.5% of YIT's revenue in the financial year 2022.The ongoing projects of the business to be closed down are expected to be completed by 2027, after which YIT will no longer have operations in Sweden.
‘We have evaluated several options to improve the profitability of our infrastructure business in Sweden. Our team has done a very good job in challenging circumstances and worked hard to turn the business around, and the decision to close down the local business was not easy. The closing down will allow us to focus our operations and release capital for businesses that support our strategy. We are committed to completing the last few individual ongoing projects in cooperation with our customers,’ said Aleksi Laine, EVP of the YIT’s Infrastructure segment.
The decision to close down the infrastructure operations in Sweden and the previously announced sale of the renewable energy business are part of YIT's transformation program, announced on 10 February 2023. One of the objectives of the program is to improve YIT’s capital efficiency. The company continues the strategic review, announced on 20 June 2023, regarding certain assets and operations and selected investments, including YIT’s ownership stake in Tripla Mall.
Further information:
YIT 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 nine countries: Finland, Sweden, Norway, 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