October 23, 2009
Interim Report January-September 2009
OUTOTEC OYJ INTERIM REPORT
OCTOBER 23, 2009 AT 9:00 AM
INTERIM REPORT JANUARY-SEPTEMBER 2009
Solid performance in challenging market conditions
Reporting period Q1-Q3/2009 in brief (Q1-Q3/2008):
* Sales: EUR 657.9 million (EUR 819.2 million)
* Operating profit: EUR 45.3 million (EUR 72.7 million)
* Profit before taxes: EUR 47.6 million (EUR 83.9 million)
* Earnings per share: EUR 0.80 (EUR 1.40)
* Order intake: EUR 446.6 million (EUR 1,033.9 million)
* Order backlog: EUR 980.0 million (EUR 1,484.5 million)
* Net cash flow from operating activities: EUR 15.2 million
(EUR 143.4 million)
Q3/2009 in brief (Q3/2008):
* Sales: EUR 188.7 million (EUR 318.1 million)
* Operating profit: EUR 15.1 million (EUR 28.9 million)
* Profit before taxes: EUR 16.0 million (EUR 34.0 million)
* Order intake: EUR 201.5 million (EUR 259.8 million)
* Net cash flow from operating activities: EUR 2.5 million
(EUR 19.1 million)
Outotec reiterates its outlook for 2009.
CEO Tapani Järvinen:
"The market activity in the mining and metals industry picked up
slightly towards the end of the reporting period, but the market
remains challenging. Some of the negotiations that were put on hold
in the fall of 2008 have now been re-opened, but companies are
cautious in making decisions regarding new investments because there
are still financing issues and production plants have unused
capacity.
Our gross profit margin was on a good level because of license fees
and good project execution. However, due to the lower sales volume,
we have been adjusting our operations by reducing the number of
temporary employees and subcontractors as well as by optimizing our
global office network. We are continuously following the workload of
our personnel and we are prepared to further increase our cost-saving
measures. It is, however, equally important for us to maintain our
sales, offering and delivery capabilities, technological competitive
advantages and be prepared to capitalize on growth opportunities.
We have been strengthening our presence in India, China and the CIS
countries, and we have also developed our offerings for the energy
and industrial water treatment sectors. The first successful result
in these new areas is the EUR 110 million contract for a new oil
shale processing plant with Eesti Energia. In addition, the recent
announcement relating to the combination of Outotec and Larox
supports our growth targets and Larox's products and services fit
seamlessly into our technology portfolio. By combining our sales and
service networks and product portfolios, we can provide even more
comprehensive solutions and services to our customers".
Summary of Key Figures Q3 Q3 Q1-Q3 Q1-Q3 Last 12 Q1-Q4
2009 2008 2009 2008 months 2008
Sales, EUR million 188.7 318.1 657.9 819.2 1,056.7 1,217.9
Gross margin, % 24.6 21.7 20.8 20.9 21.6 21.5
Operating profit , EUR 15.1 28.9 45.3 72.7 92.8 120.2
million
Operating profit 8.0 9.1 6.9 8.9 8.8 9.9
margin, %
Profit before taxes, 16.0 34.0 47.6 83.9 100.0 136.3
EUR million
Net cash from operating 2.5 19.1 15.2 143.4 -21.6 106.6
activities, EUR million
Net interest-bearing
debt at the end of -279.3 -370.5 -279.3 -370.5 -279.3 -314.6
period,
EUR million
Gearing at the end of -119.1 -175.4 -119.1 -175.4 -119.1 -139.0
period, %
Working capital at the -147.3 -239.3 -147.3 -239.3 -147.3 -171.2
end of period, EUR
million
Return on investment, % 31.0 65.8 30.2 53.5 46.3 61.6
Return on equity, % 20.3 46.6 19.3 36.8 30.7 42.6
Order backlog at the 980.0 1,484.5 980.0 1,484.5 980.0 1,176.7
end of period, EUR
million
Order intake, EUR 201.5 259.8 446.6 1,033.9 566.5 1,153.8
million
Personnel, average for 2,566 2,572 2,568 2,434 2,583 2,483
the period
Earnings per share, EUR 0.28 0.57 0.80 1.40 1.65 2.25
INTERIM REPORT JANUARY-SEPTEMBER 2009
MARKETS
The market conditions remain challenging in the mining and metals
industry. Many mining and metals companies have been updating their
investment plans toward the end of the third quarter, but
decision-making is slow regarding new investments because there are
still financing issues and production plants have unused capacity.
The market conditions vary by metal. On one hand, aluminium and steel
producers are facing depressed metals prices and high inventories,
and on the other hand, copper and gold prices remain on a good
level.
Most of the growth in metals consumption will come from developing
economies and, according to market research; China represents nearly
50% of the growth in 2009. Also India continues to develop its
infrastructure utilizing its large natural resource base.
There is continuous demand for modernization and debottlenecking at
mine sites and metals processing plants as well as for
energy-efficient and environmentally friendly technologies, equipment
and services. As ore grades decline, more processing capacity will be
needed. Also, complex ore bodies require new or modernized solutions,
which enable economically viable production and better metals
recovery.
There are also new opportunities for Outotec in the development of
alternative energy resources and in industrial water treatment.
Outotec offers applications and services for oil shale processing and
bio-energy production for power plants through recent joint ventures.
The world's recoverable oil shale resources are many times greater
than those of conventional oil reserves, with large oil shale
deposits to be found in the US, Brazil, China, Jordan, Russia and
Estonia. Outotec's technologies can also be applied beyond the mining
and metals industry to waste burning plants, electronics
manufacturers and other industries which need water treatment.
ORDER INTAKE
Order intake in the reporting period amounted to EUR 446.6 million
(Q1-Q3/2008: EUR 1,033.9 million) including plant deliveries, several
smaller equipment deliveries and services to existing customers. The
orders received in the third quarter came to EUR 201.5 million
(Q3/2008: EUR 259.8 million) and included plant deliveries, smaller
equipment, spare parts and services.
Major new orders in the third quarter included:
* oil shale technology to Eesti Energia, Estonia (EUR 110
million);
* copper recovery plant to Pueblo Viejo's gold mine in the
Dominican Republic (EUR 16 million);
* engineering and smelter technology to Iran (EUR 10
million); and
* flash smelting technology to Zijin Copper Co. Ltd. China
(EUR 7 million).
There were no major orders in the second quarter.
Major new orders in the first quarter included:
* sulfuric acid plant for Noracid S.A. in Mejillones, Chile (EUR 51
million);
* several service contracts for industrial and maintenance services
in Chile and Canada (EUR 15 million); and
* flotation cells and thickeners for Polymetal's Albazino gold mine
project in Russia.
ORDER BACKLOG
The order backlog at the end of the reporting period totaled EUR
980.0 million (September 30, 2008: EUR 1,484.5 million), representing
a 34% decline from the comparison period.
At the end of the reporting period, Outotec's order backlog included
21 projects with an order backlog value in excess of EUR 10 million,
accounting for 71% of the total backlog. According to a management
estimate, roughly 23% of the current backlog will be delivered in
2009 and the rest in 2010 and beyond. At the end of the reporting
period, Outotec's order backlog included roughly EUR 100 million in
suspended projects, which have been taken into account in the
progress estimate. Roughly 2% of the projects in Outotec's current
backlog are for mining companies that are developing their first
processing plants.
SALES AND FINANCIAL RESULT
Outotec's sales in the reporting period totaled EUR 657.9 million
(Q1-Q3/2008: EUR 819.2 million), which was 20% lower than in the
comparison period. Sales for the third quarter were EUR 188.7 million
(Q3/2008: EUR 318.1 million). The decline in sales resulted from the
smaller order backlog, especially in the Base Metals division, and
the rescheduling of some major projects under execution.
The Services business, which is included in the divisions' and other
businesses' sales figures, totaled EUR 103.3 million in the reporting
period (Q1-Q3/2008: EUR 87.0 million), up 19% from the comparison
period. Majority of the increase came from Outotec Auburn, which was
acquired in October 2008. The sales volume of the Services business
in the third quarter totaled EUR 29.9 million (Q3/2008: EUR 35.4
million). Service business sales in the third quarter were lower than
in 2008 because there were fewer revamp projects and spare part
deliveries related to new investment projects. In addition,
customers' lower capacity utilization has affected the overall
service demand.
The operating profit for the reporting period was EUR 45.3 million
(Q1-Q3/2008: EUR 72.7 million), representing 6.9% of sales
(Q1-Q3/2008: 8.9%). The decrease was the result of lower sales
volume, decreased license fee income, fewer project completions and
higher fixed costs. The operating profit includes EUR 2.4 million
one-time positive effect from the amicable settlement of all disputes
related to the Pattison Sand project. The unrealized and realized
exchange gains related to currency forward contracts, which are not
included in the hedge accounting, increased profitability by EUR 1.6
million (Q1-Q3/2008: unrealized and realized loss of EUR 9.1
million). The operating profit in the third quarter was EUR 15.1
million (Q3/2008: EUR 28.9 million). The main reasons for lower
operating profit were the significantly lower sales volume, fewer
project completions and higher fixed costs.
In the reporting period, Outotec's fixed costs were EUR 7.9 million
higher than in the comparison period. The increase was mainly caused
by fixed costs of Outotec Auburn, increased sales work, developing
business operations in India, one-time costs related to adjustments
of office network and development of the services business worldwide.
Outotec's profit before taxes for the reporting period was EUR 47.6
million (Q1-Q3/2008: EUR 83.9 million). Profit before taxes was
favorably impacted by the net financial income of EUR 2.3 million
(Q1-Q3/2008: EUR 11.2 million) from the high net cash position. The
decline in net financial income is primarily due to lower interest
rates. Net profit for the period was EUR 33.3 million (Q1-Q3/2008:
EUR 58.8 million). Taxes totaled EUR 14.3 million (Q1-Q3/2008: EUR
25.1 million). This represents an effective tax rate of 30.0%.
Earnings per share were EUR 0.80 (Q1-Q3/2008: EUR 1.40).
Outotec's return on equity for the reporting period was 19.3%
(Q1-Q3/2008: 36.8%), and return on investment was 30.2% (Q1-Q3/2008
53.5%).
Sales and Operating Profit by Segment Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Sales
Minerals Processing 79.4 122.0 255.0 274.8 419.6
Base Metals 28.0 76.9 102.4 208.9 295.3
Metals Processing 77.4 116.9 278.0 330.8 494.7
Other Businesses 11.5 11.4 49.8 37.2 56.0
Unallocated items*) and intra-group -7.6 -9.2 -27.3 -32.6 -47.7
sales
Total 188.7 318.1 657.9 819.2 1,217.9
Operating profit
Minerals Processing 9.1 3.1 23.1 10.4 22.5
Base Metals 1.6 13.3 5.6 31.5 48.7
Metals Processing 6.3 14.9 24.6 38.9 61.1
Other Businesses -0.5 1.7 -1.0 3.3 3.9
Unallocated**) and intra-group items -1.5 -4.1 -7.0 -11.4 -16.0
Total 15.1 28.9 45.3 72.7 120.2
*) Unallocated items primarily include invoicing of internal
management and administrative services.
**) Unallocated items primarily include internal management and
administrative services and share of the result of associated
companies.
Minerals Processing
The Minerals Processing division's sales in the reporting period
decreased by 7% from the comparison period and totaled EUR 255.0
million (Q1-Q3/2008: EUR 274.8 million). Operating profit was EUR
23.1 million (Q1-Q3/2008: EUR 10.4 million). High starting order
backlog, good project execution and reduced bottlenecks in the
delivery pipeline positively affected the sales but due to lower
order intake, sales in the reporting period were lower than in the
comparison period. Operating profit for the reporting period includes
EUR 2.4 million one-time positive effect from the amicable settlement
of all disputes related to the Pattison Sand project. Operating
profit for the reporting period also includes unrealized and realized
exchange gains related to currency forward contracts of EUR 0.4
million (Q1-Q3/2008: unrealized and realized loss of EUR 6.8
million).
Base Metals
The Base Metals division's sales in the reporting period decreased by
51% from the comparison period and totaled EUR 102.4 million
(Q1-Q3/2008: EUR 208.9 million). The decrease in sales was primarily
due to low order intake in the first half of 2009, lower starting
order backlog, and rescheduling of some projects. The operating
profit was EUR 5.6 million (Q1-Q3/2008: EUR 31.5 million). The
significantly lower sales figure relative to the division's fixed
costs and decreased license fee income were the main reasons for the
division's low operating profit.
Metals Processing
The Metals Processing division's sales in the reporting period
decreased 16% from the comparison period to EUR 278.0 million
(Q1-Q3/2008: EUR 330.8 million). The decrease in sales was mainly due
to the rescheduling of some projects. Operating profit came to EUR
24.6 million (Q1-Q3/2008: EUR 38.9 million). Operating profit
declined because of lower sales volume and decreased license fee
income. Operating profit for the reporting period also includes
unrealized and realized exchange gains related to currency forward
contracts of EUR 2.1 million (Q1-Q3/2008: unrealized and realized
loss of EUR 0.2 million).
BALANCE SHEET, FINANCING, AND CASH FLOW
Net cash flow from operating activities in the reporting period was
positive at EUR 15.2 million (Q1-Q3/2008: EUR 143.4 million). The
change was mainly caused by an increase in working capital in 2009 as
compared to the significant decrease in working capital in 2008.
At the end of the reporting period, Outotec's cash and cash
equivalents totaled EUR 279.9 million (September 30, 2008: EUR 371.4
million). The net change in cash and cash equivalents was also
affected by the dividend payment of EUR 42.0 million in March 2009
(April 2008: EUR 39.9 million). The company invests its excess cash
in short-term money market instruments such as bank deposits and
corporate commercial papers. Investments are made within pre-approved
counterparty-specific limits and tenors, which Outotec reviews
regularly. On September 30, 2009, no money market investment had
remaining maturity exceeding three months.
Outotec's working capital amounted to EUR -147.3 million on September
30, 2009 (September 30, 2008: EUR -239.3 million). The change in
working capital was the result of low order intake and subsequently
lower advance payments received in the reporting period.
The balance sheet structure remained strong, and the financing
structure was healthy. Net interest-bearing debt on September 30,
2009 came to EUR -279.3 million (September 30, 2008: EUR -370.5
million). The advances received at the end of the reporting period
totaled EUR 203.0 million (September 30, 2008: EUR 264.7 million),
representing a decrease of 23% from the comparison period. Outotec's
gearing at the end of the reporting period was -119.1% (September 30,
2008: -175.4%), and the equity-to-assets ratio was 44.5% (September
30, 2008: 38.9%).
The company's capital expenditure in the reporting period was EUR
13.3 million (Q1-Q3/2008: EUR 10.0 million), which consisted mainly
of the establishment of a joint venture company for bio-energy
technology business, investments in information technology,
intellectual property rights, and machinery for the Outotec Turula
workshop.
Guarantees for commercial commitments, including advance payment
guarantees issued by the parent and other Group companies decreased
from the comparison period because of lower order intake and were EUR
352.7 million (September 30, 2008: EUR 435.0 million) at the end of
the reporting period.
Outotec has an agreement with a third-party service provider
concerning administration and hedging of the share-based incentive
program for key personnel. As part of this agreement, for hedging the
underlying cash flow risk, the service provider has purchased a total
of 550,000 Outotec shares (in 2008: 265,000), which have been funded
by Outotec and accounted as treasury shares in Outotec's consolidated
balance sheet. At the end of the reporting period, the amount of
these treasury shares was 332,534.
EXPANSION OF BUSINESS NETWORK
In July, Outotec and Eesti Energia entered into a joint venture for
the commercialization of sustainable oil shale processing technology
and for holding of the intellectual property rights related to new
Enefit technology. Eesti Energia has a 60% stake in the company with
Outotec owning 40%.
In May, Outotec announced an agreement with a Finnish company Real
Time Systems Oy to cooperate in the development of a new-generation
measuring and regulating system for electric arc furnaces. Outotec is
funding the development work and is a minor shareholder of Real Time
Systems Oy and has a call option on the company.
In February, Outotec and a Swedish company Skellefteå Kraft AB agreed
to establish a joint company, GreenExergy AB. The company focuses on
the development, marketing and delivery of bio-energy technologies to
power plants for the production of bio-energy from forestry and
sawmill residues. Outotec's stake is 45%, Skellefteå Kraft's 33%, and
three additional Swedish companies each have a minor stake in the
joint venture.
RESEARCH AND TECHNOLOGY DEVELOPMENT
Outotec's research and technology development expenses in the
reporting period totaled EUR 15.9 million (Q1-Q3/2008: EUR 14.7
million), representing 2.4% of sales (Q1-Q3/2008: 1.8%). Outotec
filed 38 new priority patent applications (Q1-Q3/2008: 29), and 168
new national patents (Q1-Q3/2008:182) were granted.
The contract signed with Pueblo Viejo for a copper recovery plant is
a breakthrough in combining Outotec's hydrometallurgical expertise,
including new OKTOP® reactors, and Paques THIOTEQ® biotechnology in
copper production.
In August, Outotec launched new proprietary cooling towers enabling
lower emissions and larger cooling capacity than conventional cooling
towers.
The cooperation with Real Time Systems Oy in the development of a
new-generation measuring and regulating system will bring significant
savings for the furnace operators, who use electric arc furnaces in
the production of steel from scarp.
In May, Outotec committed to the Baltic Sea Action Summit project,
which is supported by the Finnish government. As part of its
commitment to a healthier Baltic Sea, Outotec will focus on
minimizing metal-containing dusts and sulfur dioxide emissions within
the metals industry as well as on reducing metal-containing
effluents.
In March, Outotec announced the expansion of its technology offerings
to two new sectors: energy and industrial water treatment. Outotec's
competencies and offerings in the energy sector include coal
charring, gasification and combustion technologies for various
plants, also comprising oil shale pyrolysis. In the reporting period,
oil shale combustion test work was conducted at Outotec's Frankfurt
Research Center. The test work relates to basic engineering for the
oil-shale-based oil production plant to be built in Narva, Estonia.
In July, Outotec announced EUR 110 million project to build the
oil-shale-based oil production plant. As part of the technology
expansion, the Swedish joint venture GreenExergy AB will offer
bio-energy technologies for power plants. Offerings for the
industrial water treatment sector include solutions for
concentrators, hydrometallurgical plants, non-ferrous and ferrous
smelters and refineries, sulfuric acid plants, alumina plants, closed
mines and old tailings ponds.
Outotec and Codelco finished testing the TankCell® 300 flotation
cells at Chuquicamata, Chile. The results showed a better recovery
and lower energy consumption than the previous solution. Outotec
commissioned a new automated Courier® 6i SL slurry analyzer and
sampling system at Australia's largest underground mine. It is one of
the world's most advanced systems in the field of minerals
processing. In January, Outotec launched a new OKTOP® reactor family.
While all reactors were previously individually designed, the new
OKTOP® reactors are built from modules which are tailored to give
optimum results.
PERSONNEL
At the end of the reporting period, Outotec had a total of 2,555
employees (September 30, 2008: 2,498). The greatest decline in
personnel numbers was in South America due to fewer temporary
employees with the greatest increase in personnel in North America
stemming from the acquisition of Outotec Auburn. For the reporting
period, Outotec had on average 2,568 employees (Q1-Q3/2008: 2,434).
The average number of personnel increased by 134 individuals from the
comparison period through acquisition, business growth, and active
recruitment in 2008. Temporary personnel accounted for about 8% of
the total number of employees.
Distribution of Personnel by Country Sep 30, Sep 30,
2009 2008 change %
Finland 880 913 -3.6
Germany 407 366 11.2
Rest of Europe 238 240 -0.8
Americas 667 627 6.4
Australia 204 217 -6.0
Rest of the world 159 135 17.8
Total 2,555 2,498 2.3
The number of employees has declined by 119, or 4%, since year-end
2008. The reductions were mainly related to the temporary employee
contracts in the Americas, Australia, and some parts of Europe. In
contrast, Outotec has continued to increase its personnel in Asia. At
the end of September 2009, the company had, in addition to the
personnel on Outotec's payroll, approximately 240 (June 30, 2009:
350) full-time equivalent, contracted people working in project
execution. The number of contracted workers at any given time changes
with the active project mix and project commissioning, local
legislation and regulations, and seasonal fluctuations.
In the reporting period, salaries and other employee benefits totaled
EUR 117.4 million (Q1-Q3/2008: EUR 114.5 million).
APPOINTMENT OF NEW CEO
On June 4, 2009, Outotec's Board of Directors appointed Mr. Pertti
Korhonen, 48, M. Sc. (Electronics Eng.), as the new president and
Chief Executive Officer of Outotec Oyj. Mr. Korhonen joined Outotec
on September 1, 2009, and began serving as Chief Operating Officer on
October 1, 2009. He will assume the CEO duties on January 1, 2010.
Current CEO Tapani Järvinen will retire at the end of 2009.
SHARE-BASED INCENTIVE PROGRAMS
Outotec has two share-based incentive programs for the company's key
personnel: the first, Incentive Program 2007-2008, was announced on
March 23, 2007, and the second, Incentive Program 2008-2010, was
announced on March 3, 2008.
Share-based incentive program 2007-2008
The program began on January 1, 2007, and ended December 31, 2008.
The reward compensated to the key personnel was determined by based
on whether the targets set for the development of the company's net
profit and order backlog had been reached. The total reward for the
two earning periods was EUR 6.5 million, which was paid to 22
individuals in the second quarter, with 202,779 shares allocated and
EUR 3.4 million paid in cash to cover taxes.
Share-based incentive program 2008-2010
The incentive program for 2008-2010 comprises three earning periods:
calendar years 2008, 2009, and 2010. The Board of Directors
determines the amount of the maximum reward for each individual, the
earning criteria and the targets established for them separately on
an annual basis. The reaching of the targets established for the
earning criteria will determine how great a portion of the maximum
reward will be paid. For the 2009 and 2010 earning periods, the
incentive program involves approximately 60 individuals. The reward
is paid in shares and as a cash payment. The reward will not be paid
if the individual's employment ends before the close of the earning
period. The individual must also hold the earned shares and remain
employed with the company for at least two years after the close of
the earning period.
For the earning period 2008, 14,687 shares were allocated to 33
individuals and EUR 0.2 million paid in cash to cover taxes. Those
individuals, who were included in the initial share-based incentive
program 2007-2008, were not included in the 2008 earning period.
RESOLUTIONS OF THE 2009 ANNUAL GENERAL MEETING
Outotec Oyj's Annual General Meeting (AGM) was held on March 18,
2009, in Helsinki, Finland. The Annual General Meeting approved the
parent company and the consolidated financial statements, and
discharged the members of the Board of Directors and the CEO from
liability for the 2008 financial year.
Dividend
The Annual General Meeting decided that a dividend of EUR 1.00 per
share be paid for the financial that year ended on December 31, 2008.
The dividends, totaling EUR 42.0 million, were paid on March 30,
2009.
The Board of Directors
The Annual General Meeting decided on the number of the Board
members, including chairman and vice chairman, to be five (5). Mr.
Carl-Gustaf Bergström, Mr. Karri Kaitue, Mr. Hannu Linnoinen, Mr.
Anssi Soila and Mr. Risto Virrankoski were re-elected as members of
the Board of Directors for the term expiring at the end of the next
Annual General Meeting.
The Annual General Meeting re-elected Mr. Risto Virrankoski as the
chairman of the Board of Directors. In its assembly meeting, the
Board re-elected Mr. Karri Kaitue as the vice chairman of the Board
of Directors. In addition, the Board re-elected Mr. Carl-Gustaf
Bergström and Mr. Hannu Linnoinen as members of the Audit Committee,
Mr. Linnoinen acting as the chairman of the Audit Committee.
The Annual General Meeting also confirmed the remunerations to the
Board members as follows: chairman EUR 5,000 per month and other
Board members EUR 3,000 per month each, vice chairman and chairman of
the Audit Committee an additional EUR 1,000 per month each. Each
Board member also EUR 500 for attendance at each Board and Committee
meeting as well as reimbursement for direct costs related to Board
work.
Board's authorizations
The Annual General Meeting authorized the Board of Directors to
resolve the repurchasing of the company's own shares as follows:
* The company may repurchase a maximum number of 4,200,000 shares
using free equity and deviating from the shareholders'
pre-emptive rights to the shares, provided that the number of own
shares held by the company will not exceed ten (10) percent of
all shares in the company.
* The shares are to be repurchased in public trading on the NASDAQ
OMX Helsinki at the price established in the trading at the time
of acquisition.
The authorization has not been exercised as of October 23, 2009. The
authorization shall be valid until the next Annual General Meeting.
The Annual General Meeting authorized the Board of Directors to
resolve the issuance of shares as follows:
* The authorization includes the right to issue new shares,
distribute own shares held by the company, and the right to issue
special rights referred to in Chapter 10, Section 1 of the
Companies Act. This authorization to the Board of Directors does
not, however, entitle the Board of Directors to issue share
option rights as an incentive to personnel.
* The total number of new shares to be issued and own shares held
by the company to be distributed under the authorization may not
exceed 4,200,000 shares.
* The Board of Directors is entitled to decide on the terms of the
share issue, such as the grounds for determining the subscription
price of the shares and the final subscription price as well as
the approval of the subscriptions, the allocation of the issued
new shares and the final amount of issued shares.
This authorization is intended to be executed in conjunction with the
Larox acquisition. For additional information, please see the
company's Stock Exchange Release from October 15, 2009.
This authorization shall be valid until the next Annual General
Meeting.
Auditors
KPMG Oy Ab, authorized public accountants, has been re-elected as the
company's auditor, with Mauri Palvi as auditor in charge. The fees
for the auditor are paid according to invoice.
The Annual General Meeting decided to amend Section 9 of the Articles
of Association so that notice to convene the General Meeting shall be
issued no later than 21 days prior to the General Meeting.
SHARES AND SHARE CAPITAL
Outotec's shares are listed on the NASDAQ OMX Helsinki (OTE1V).
Outotec's share capital is EUR 16.8 million, consisting of 42.0
million shares. Each share entitles its holder to one vote at the
company's general shareholder meetings.
TRADING, MARKET CAPITALIZATION AND SHAREHOLDERS
In the reporting period, the volume-weighted average price for a
share in the company was EUR 15.80, the highest quotation for a share
was EUR 23.24 and the lowest EUR 9.30. The trading of Outotec shares
in the reporting period exceeded 81 million shares, with a total
value of over EUR 1,280 million. On September 30, 2009, Outotec's
market capitalization was EUR 913.1 million and the last quotation
for the share was EUR 21.74. On September 30, 2009, the company did
not hold any treasury shares for trading purposes.
Outotec has an agreement with a third-party service provider
concerning administration and hedging of share-based incentive
program for key personnel. As part of this agreement, for hedging the
underlying cash flow risk, the service provider has purchased a total
of 550,000 Outotec shares (in 2008: 265,000) that have been funded by
Outotec and accounted as treasury shares in Outotec's consolidated
balance sheet. At the end of the reporting period, the amount of
these treasury shares was 332,534.
On September 30, 2009, Outotec had 15,401 shareholders and shares
held in 13 nominee registers accounted for 61.45% of all Outotec
shares. On May 6, 2009, Barclays Global Investors UK Holdings Ltd's
holding in shares of Outotec Oyj fell below 5%. Its holding in shares
of Outotec was 2,068,377 shares, which represents 4.92% of the share
capital and votes in the company. On April 7, 2009, Barclays Global
Investors UK Holdings Ltd's holding in shares of Outotec Oyj exceeded
5%. Barclays Global Investors UK Holdings Ltd's holding in shares of
Outotec was 2,111,054 shares, which represented 5.02% of the share
capital and votes in the company.
EVENTS AFTER THE REPORTING PERIOD
On October 15, 2009, Outotec agreed with certain main shareholders of
Larox Corporation on share transactions, in which they sell all their
Larox series A and B shares to Outotec. The shares to be purchased
correspond altogether to 94.40% of all the votes in Larox, to 99.99%
of all Larox series A shares and to 61.89% of all Larox series B
shares. The purchase price for the shares shall be paid in the form
of new Outotec shares (see Board's authorizations under Resolutions
of the 2009 Annual General Meeting). Upon completion of the share
transactions, Outotec will make a mandatory public tender offer for
all the remaining Larox series A and B shares.
Combining the businesses of Outotec and Larox will further strengthen
Outotec's position as a leading global provider of technology
solutions and services to the mining and metals industry and will
allow Larox to develop its business in an international, financially
solid technology group operating in the same industry. The
transaction values Larox as a whole at approximately EUR 93 million.
The completion of the Share Transactions is conditional on the
receipt of necessary approvals from the competition authorities.
SHORT-TERM RISKS AND UNCERTAINTIES
Outotec's customers operate primarily in the mining and metals
industry and in geographical areas which are at different stages of
the economic cycle. The current economic downturn may further reduce
the demand for Outotec's products and services impacting order intake
in 2009. Outotec's gross margin is impacted by product mix and
license fee income related to certain technologies. A lack of these
types of orders reduces the amount of license fee and subsequently
gross margin.
The demand for export credits has remained high. Possible limitations
on the availability of export credits and financing as well as
changes to project scopes and prices in the offer stages may further
lengthen sales negotiations and postpone order effectiveness.
Outotec has systematic risk management procedures - Project Risk
Identification and Management (PRIMA) - in place to monitor projects.
In conjunction with Outotec's risk assessment for the third quarter
in 2009, all unfinished work and projects, which use the percentage
of completion and completed contract method, were monitored and
evaluated and contingencies were updated. Projects whose stage of
completion was close to 100% were evaluated and provisions for
performance guarantees and warranty period guarantees, along with
possible provisions for project losses, were updated. There were no
material increases in the total project risk provisions. At the end
of the reporting period, Outotec's order backlog included roughly EUR
100 million in suspended projects. Some of the suspended projects may
be cancelled or renegotiated. In any market situation, there is a
risk of postponement in project business.
In the third quarter of 2009, there were no material credit losses
related to the payments by Outotec's counter-parties. If the economic
downturn continues, these counterparties may be faced with having to
renegotiate some payment terms. In addition, there is a risk that
customers and suppliers will experience financial difficulties and
that a lack of financing will result in bankruptcies, which can also
result in some losses for Outotec.
More than half of Outotec's total cash flow is denominated in euros.
The rest is divided among various currencies, including the US
dollar, Australian dollar, Brazilian real, Canadian dollar, and South
African rand. The weight of any given currency in new projects can
fluctuate substantially, but most cash-flow-related risks are hedged
in the short and long term. In the short-term, currency fluctuations
may create volatility in the operating profit. The forecasted and
probable cash flows are selectively hedged and are always on the
basis of separate decisions and risk analysis. The cost of hedging is
taken into account in project pricing.
Outotec's business model is based primarily on customer advance
payments and on-demand guarantees issued by Outotec's relationship
banks. Changes in advance payments received have an impact on the
liquidity of Outotec. Exposure to on-demand guarantees has remained
high. Cash held by Outotec is invested mainly in short-term bank
deposits and, to a lesser extent, in Finnish corporate short-term
commercial papers. The lower interest rate levels reduce the interest
income generated from these investments.
Outotec is involved in a few legal and arbitration proceedings.
During the second quarter, the 5th Enforcement Office of Istanbul
enforced the Supreme Court's judgement according to which Nordea was
obliged to pay Bagfas the value of the bank guarantee and legal fees
up to EUR 4.8 million. According to the provisions of the facility
arrangement between Nordea and Outotec, the latter has paid all costs
and expenses incurred by Nordea. In the third quarter 2009, the
arbitration proceedings between Outotec and Bagfas continued and
Outotec has lodged before the arbitral tribunal an additional claim
to cover the losses incurred in Turkey. Subsequently, the Supreme
Court of Istanbul referred the case back to the court of first
instance stating that the previously overruled claims of Bagfas have
to be re-examined. Outotec made an additional provision of EUR 0.8
million due to the unexpected revival of the Turkish proceedings.
Management expects that the outcome of the other pending proceedings
will not have a material effect on Outotec's financial result.
OUTLOOK FOR 2009 REITERATED
The investments in the mining and metals industry will fall from the
previous year because of the uncertainty in the worldwide economic
conditions. There are feasibility studies in progress, which may turn
into new orders, but the decision-making process takes time. Many
customers are evaluating project scopes and prices, but they still
face difficulties in arranging financing packages.
The prevailing uncertainty continues to obscure the outlook for the
mining and metals industry. On the basis of the January-September
result, existing order backlog, and new order prospects, the
management expects that in 2009:
* Sales will contract by approximately one
quarter from 2008 figure,
* Gross margin will continue on a healthy level,
and
* Operating profit margin will be lower than in
2008 because of lower sales volume.
Operating profit is dependent on exchange rates, product mix, timing
of new orders, and project completions. Operating profit tends to
accrue more toward the year-end.
Espoo, on October 23, 2009
Outotec Oyj
Board of Directors
For further information, please contact:
Outotec Oyj
Tapani Järvinen, President and CEO
tel. +358 20 529211
Vesa-Pekka Takala, CFO
tel. +358 20 529211, mobile +358 40 5700074
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 5292004, mobile +358 400 817198
Rita Uotila, Vice President - Investor Relations
tel. +358 20 5292003, mobile +358 400 954141
Format for e-mail addresses: firstname.lastname@outotec.com
INTERIM FINANCIAL STATEMENTS (unaudited)
Statement of Comprehensive Income Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Sales 188.7 318.1 657.9 819.2 1,217.9
Cost of sales -142.3 -249.1 -520.8 -648.2 -956.2
Gross profit 46.4 69.0 137.1 170.9 261.7
Other income 0.9 0.2 5.1 0.3 0.9
Selling and marketing expenses -13.8 -12.0 -40.1 -33.8 -48.0
Administrative expenses -13.2 -11.8 -39.9 -39.4 -55.1
Research and development expenses -5.0 -4.8 -15.9 -14.7 -20.2
Other expenses -0.1 -11.7 -0.9 -10.6 -19.1
Share of results of associated -0.0 - -0.0 - -
companies
Operating profit 15.1 28.9 45.3 72.7 120.2
Finance income and expenses
Interest income and expenses 0.9 4.9 4.1 12.5 16.4
Market price gains and losses 0.6 1.1 0.9 1.5 3.2
Other finance income and -0.6 -1.0 -2.8 -2.9 -3.4
expenses
Net finance income 0.9 5.0 2.3 11.2 16.1
Profit before income taxes 16.0 34.0 47.6 83.9 136.3
Income tax expenses -4.5 -10.1 -14.3 -25.1 -42.4
Profit for the period 11.5 23.9 33.3 58.8 93.9
Other comprehensive income
Exchange differences on 4.0 -3.9 15.1 -5.7 -21.7
translating foreign operations
Cash flow hedges -0.2 -9.9 1.2 -7.7 -12.6
Income tax relating to cash 0.0 2.5 -0.1 1.9 3.1
flow hedges
Available for sale financial 0.0 -0.1 -0.2 -2.0 -2.1
assets
Other comprehensive income for 3.8 -11.4 16.1 -13.6 -33.3
the period
Total comprehensive income for 15.3 12.5 49.4 45.2 60.6
the period
Profit for the period
attributable to:
Equity holders of the parent 11.5 23.9 33.3 58.9 94.0
company
Minority interest - - - -0.0 -0.0
Total comprehensive income for
the period
attributable to:
Equity holders of the parent 15.3 12.5 49.4 45.3 60.6
company
Minority interest - - - -0.0 -0.0
Earnings per share for profit
attributable to the equity
holders of the parent company:
Basic earnings per share, EUR 0.28 0.57 0.80 1.40 2.25
Diluted earnings per share, EUR 0.28 0.57 0.80 1.40 2.25
All figures in the tables have been rounded and consequently the sum
of individual figures may deviate from the sum presented. Key figures
have been calculated using exact figures.
Condensed Statement of September 30, September 30, December 31,
Financial Position
EUR million 2009 2008 2008
ASSETS
Non-current assets
Intangible assets 84.2 73.8 81.4
Property, plant and 32.8 26.5 29.5
equipment
Non-current financial assets
Interest-bearing 1.2 0.5 0.5
Non interest-bearing 26.1 13.0 21.3
Total non-current assets 144.4 113.8 132.7
Current assets
Inventories *) 60.2 95.5 87.7
Current financial assets
Interest-bearing 0.6 0.5 0.4
Non interest-bearing 245.2 226.1 323.2
Cash and cash equivalents 279.9 371.4 317.8
Total current assets 586.0 693.5 729.1
TOTAL ASSETS 730.3 807.3 861.8
EQUITY AND LIABILITIES
Equity
Equity attributable to the 234.5 211.2 226.4
equity holders of the parent
company
Total equity 234.5 211.2 226.4
Non-current liabilities
Interest-bearing 2.2 1.2 2.6
Non interest-bearing 76.0 74.8 74.3
Total non-current 78.2 76.0 76.9
liabilities
Current liabilities
Interest-bearing 0.2 0.7 1.5
Non interest-bearing
Advances received **) 203.0 264.7 214.0
Other non interest-bearing 214.4 254.6 343.0
liabilites
Total current liabilities 417.7 520.0 558.4
Total liabilities 495.9 596.0 635.4
TOTAL EQUITY AND LIABILITIES 730.3 807.3 861.8
*) Of which advances paid for inventories amounted to EUR 8.6 million
at September 30, 2009 (September 30, 2008: EUR 12.7 million and at
December 31, 2008: EUR 16.4 million).
**) Gross advances received before percentage of completion revenue
recognition amounted to EUR 1,128.9 million at September 30, 2009
(September 30, 2008: EUR 953.5 million and at December 31, 2008: EUR
909.3 million).
Condensed Statement of Cash Flows Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2008
Cash flows from operating activities
Profit for the period 33.3 58.8 93.9
Adjustments for
Depreciation and amortization 8.7 8.6 11.0
Other adjustments 14.7 5.8 13.5
Increase (-) / decrease (+) in working capital -22.3 85.0 7.9
Interest received 4.8 12.2 17.2
Interest paid -0.5 -0.3 -0.4
Income tax paid -23.5 -26.8 -36.6
Net cash from operating activities 15.2 143.4 106.6
Purchases of assets -13.3 -10.1 -15.2
Acquisition of subsidiaries, net of cash -2.9 - -7.6
Proceeds from sale of assets 0.3 0.4 0.7
Change in other investing activities -0.0 - -
Net cash used in investing activities -15.9 -9.7 -22.1
Cash flow before financing activities -0.7 133.6 84.5
Repayments (-) / borrowings (+) of non-current debt -0.1 -0.3 0.2
Decrease (-) / increase (+) in current debt -1.0 - 1.1
Purchase of treasury shares -3.3 -9.3 -9.4
Dividends paid -42.0 -39.9 -39.9
Change in other financing activities -0.1 0.1 0.8
Net cash used in financing activities -46.5 -49.3 -47.3
Net change in cash and cash equivalents -47.3 84.3 37.3
Cash and cash equivalents at the beginning of the 317.8 291.0 291.0
period
Foreign exchange rate effect on cash and cash 9.4 -3.9 -10.5
equivalents
Net change in cash and cash equivalents -47.3 84.3 37.3
Cash and cash equivalents at the end of the period 279.9 371.4 317.8
Statement of Changes in Equity
A = Share capital
B = Share premium fund
C = Other reserves
D = Fair value reserves
E = Treasury shares
F = Cumulative translation differences
G = Retained earnings
H = Minority interest
I = Total equity
Attributable to the equity holders of the
parent company
EUR million A B C D E F G H I
Equity at January 16.8 20.2 0.2 7.9 - 5.7 164.0 0.1 214.8
1, 2008
Dividends paid - - - - - - -39.9 - -39.9
Purchase of - - - - -9.3 - - - -9.3
treasury shares *)
Share-based
payments:
value of - - - - - - 0.1 - 0.1
received services
Acquisition of - - - - - - - -0.0 -0.0
minority interest
Total comprehensive
income for the - - - -7.9 - -5.7 58.9 -0.0 45.3
period
Other changes - - -0.0 - - - 0.2 - 0.2
Equity at September 16.8 20.2 0.1 0.0 -9.3 0.0 183.4 0.0 211.2
30, 2008
Equity at January 16.8 20.2 0.1 -3.7 -9.4 -16.0 218.5 - 226.4
1, 2009
Dividends paid - - - - - - -42.0 - -42.0
Purchase of - - - - -3.3 - - - -3.3
treasury shares *)
Treasury shares
issued to key - - - - 8.1 - -4.8 - 3.3
employees
Share-based
payments:
value of - - - - - - 0.0 - 0.0
received
services
Total comprehensive
income for the - - - 1.0 - 15.1 33.3 - 49.4
period
Other changes - - 0.2 - - - 0.4 - 0.6
Equity at September 16.8 20.2 0.3 -2.8 -4.6 -0.9 205.3 - 234.4
30, 2009
*) Outotec has an agreement with a third-party service provider
concerning administration and hedging of share-based incentive
program for key personnel. As part of this agreement, for hedging the
underlying cash flow risk, the service provider has purchased 285,000
Outotec shares during year 2009 (2008: 265,000) that have been funded
by Outotec and accounted as treasury shares in Outotec's consolidated
balance sheet.
Key Figures Q3 Q3 Q1-Q3 Q1-Q3 Last 12 Q1-Q4
2009 2008 2009 2008 months 2008
Sales, EUR million 188.7 318.1 657.9 819.2 1,056.7 1,217.9
Gross margin, % 24.6 21.7 20.8 20.9 21.6 21.5
Operating profit, EUR 15.1 28.9 45.3 72.7 92.8 120.2
million
Operating profit 8.0 9.1 6.9 8.9 8.8 9.9
margin, %
Profit before taxes, 16.0 34.0 47.6 83.9 100.0 136.3
EUR million
Profit before taxes in 8.5 10.7 7.2 10.2 9.5 11.2
relation to sales, %
Net cash from operating 2.5 19.1 15.2 143.4 -21.6 106.6
activities, EUR million
Net interest-bearing
debt at the end of -279.3 -370.5 -279.3 -370.5 -279.3 -314.6
period,
EUR million
Gearing at the end of -119.1 -175.4 -119.1 -175.4 -119.1 -139.0
period, %
Equity-to-assets ratio 44.5 38.9 44.5 38.9 44.5 35.0
at the end of period, %
Working capital at the -147.3 -239.3 -147.3 -239.3 -147.3 -171.2
end of period, EUR
million
Capital expenditure, 4.1 3.6 13.3 10.0 27.3 23.9
EUR million
Capital expenditure in 2.2 1.1 2.0 1.2 2.6 2.0
relation to sales, %
Return on investment, % 31.0 65.8 30.2 53.5 46.3 61.6
Return on equity, % 20.3 46.6 19.3 36.8 30.7 42.6
Order backlog at the 980.0 1,484.5 980.0 1,484.5 980.0 1,176.7
end of period, EUR
million
Order intake, EUR 201.5 259.8 446.6 1,033.9 566.5 1,153.8
million
Personnel, average for 2,566 2,572 2,568 2,434 2,583 2,483
the period
Profit for the period 6.1 7.5 5.1 7.2 6.5 7.7
in relation to sales, %
Research and 5.0 4.8 15.9 14.7 21.4 20.2
development expenses,
EUR million
Research and
development expenses in 2.7 1.5 2.4 1.8 2.0 1.7
relation to sales, %
Earnings per share, EUR 0.28 0.57 0.80 1.40 1.65 2.25
Equity per share, EUR 5.63 5.03 5.63 5.03 5.63 5.43
Dividend per share, EUR - - - - 1.00 1.00
NOTES TO THE INCOME STATEMENT AND BALANCE SHEET
These interim financial statements are prepared in accordance with
IAS 34 Interim Financial Reporting. The same accounting policies and
methods have been applied to these interim financial statements as in
the recent annual financial statements. These interim financial
statements are unaudited.
Adoption of new interpretations
Outotec has applied the following revised standards from beginning of
2009:
* IAS 1 Presentation of financial statements. The revised
standard aims to separate the transactions in equity to
transactions with owners and other changes in equity. The changes
have impact on presentation of interim and financial statements.
* IFRS 8 Operating segments. The aim of the new standard is
for the entity to adopt a management approach in reporting the
financial performance of each segment. The application of the new
standard has not changed Outotec's operating segments since the
company had been reporting the same segments as in management
reporting. The new standard's main impact will be on the disclosure
information.
Outotec has also applied the following revised standards and
interpretation from beginning 2009, which do not impact on the
Group's interim financial statements or financial statements.
* IFRS 2 Share-based Payment - Vesting Conditions and
Cancellations (effective date January 1, 2009).
* IAS 23 Borrowing costs (effective date January 1, 2009).
* IAS 32 Financial Instruments: Presentation and IAS 1
Presentation of Financial Statements - Puttable Financial
Instruments and Obligations Arising on Liquidation (effective date
January 1, 2009).
* IFRIC 16 Hedges of a Net Investment in a Foreign Operation
(effective date October 1, 2008).
Outotec will estimate the impact of the following standards and will
apply the new standards from the financial period beginning January
1, 2010 onwards:
* IFRS 3 Business combinations (effective date for annual
periods beginning on or after July 1, 2009).
* IAS 27 Consolidated and separate financial statements
(effective date for annual periods beginning on or after July, 1
2009).
* IAS 39 Financial instruments: Recognition and Measurement
(effective date for annual periods beginning on or after July, 1
2009). The amended standard has not yet been approved to be applied
in the EU.
Use of estimates
IFRS requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities as well as the
disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of income and expenses
during the reporting period. Accounting estimates are employed in the
financial statements to determine reported amounts, including the
realizability of certain assets, the useful lives of tangible and
intangible assets, income taxes, provisions, pension obligations,
impairment of goodwill. These estimates are based on management's
best knowledge of current events and actions; however, it is possible
that the actual results may differ from the estimates used in the
interim financial statements.
Major Non-Recurring Items in Operating Profit Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2008
Loss on sale of Intune Circuits Ltd. - -1.1 -1.1
Arbitration settlement 2.4 - -8.5
Income Tax Expenses Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2008
Current taxes -13.1 -16.0 -37.4
Deferred taxes -1.2 -9.1 -5.0
Total income tax expenses -14.3 -25.1 -42.4
Property, Plant and Equipment Sep 30, Sep 30, Dec 31,
EUR million 2009 2008 2008
Historical cost at the beginning of the 87.6 81.3 81.3
period
Translation differences 2.3 -1.1 -3.3
Additions 7.4 7.5 10.7
Disposals -0.6 -2.9 -3.3
Acquired subsidiaries - - 2.1
Reclassifications -0.1 -0.1 0.0
Historical cost at the end of the period 96.5 84.7 87.6
Accumulated depreciation and impairment at
the beginning of the period -58.1 -56.7 -56.7
Translation differences -1.3 0.7 2.0
Disposals 0.4 2.9 3.1
Reclassifications 0.1 0.0 0.0
Depreciation during the period -4.9 -5.1 -6.4
Accumulated depreciation and impairment at -63.8 -58.3 -58.1
the end of the period
Carrying value at the end of the period 32.8 26.5 29.5
Commitments and Contingent Liabilities Sep 30, Sep 30, Dec 31,
EUR million 2009 2008 2008
Pledges 1.9 1.1 3.0
Guarantees for commercial commitments 211.1 180.3 166.5
Minimum future lease payments on operating 63.8 56.6 68.7
leases
The pledges are used to secure local credit facilities of the Group's
Canadian subsidiaries.
The above value of commercial guarantees does not include advance
payment guarantees issued by the parent or other group companies. The
total amount of guarantees for financing issued by group companies
amounted to EUR 8.2 million at September 30, 2009 (September 30,
2008: EUR 5.7 million and at December 31, 2008: EUR 8.5 million) and
for commercial guarantees including advance payment quarantees EUR
352.7 million at September 30, 2009 (September 30, 2008: EUR 435.0
million and at December 31, 2008: EUR 353.8 million).
Derivative Instruments
Currency Forwards Sep 30, Sep 30, Dec 31,
EUR million 2009 2008 2008
Fair values, net -2.0*) -6.5**) -12.7***)
Nominal values 310.1 469.8 378.3
*) of which EUR -0.7 million designated as cash flow hedges.
**) of which EUR 0.2 million designated as cash flow hedges.
***) of which EUR -5.1 million designated as cash flow hedges.
Related Party Transactions
Transactions and Balances with Associated Companies Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2009 2008 2008
Sales 0.1 - -
Trade and other receivables 0.0 0.1 -
Segments' Sales and Operating Profit by Quarters
EUR million Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09
Sales
Minerals 72.7 110.5 60.1 92.7 122.0 144.8 84.5 91.1 79.4
Processing
Base Metals 64.1 85.6 60.1 72.0 76.9 86.4 44.8 29.6 28.0
Metals 113.0 120.8 104.6 109.2 116.9 163.9 97.2 103.4 77.4
Processing
Other 11.1 11.1 9.1 16.7 11.4 18.8 18.3 20.0 11.5
Businesses
Unallocated
items *) and -15.0 -12.5 -8.3 -15.0 -9.2 -15.1 -13.2 -6.5 -7.6
intra-group
sales
Total 245.9 315.5 225.6 275.5 318.1 398.8 231.6 237.6 188.7
Operating
profit
Minerals 3.6 16.3 4.1 3.2 3.1 12.1 6.1 7.9 9.1
Processing
Base Metals 12.1 9.3 6.3 11.9 13.3 17.2 4.3 -0.4 1.6
Metals 11.5 11.5 12.3 11.8 14.9 22.1 8.9 9.3 6.3
Processing
Other 1.3 0.3 0.4 1.2 1.7 0.7 -0.4 -0.1 -0.5
Businesses
Unallocated**)
and intra-group -2.5 -4.4 -2.2 -5.1 -4.1 -4.6 -2.7 -2.7 -1.5
items
Total 26.0 33.0 21.0 22.9 28.9 47.5 16.3 13.9 15.1
*) Unallocated items primarily include invoicing of internal
management and administrative services.
**) Unallocated items primarily include internal management and
administrative services and share of the result of associated
companies.
Definitions for Key Financial Figures
Net interest-bearing debt = Interest-bearing debt -
interest-bearing assets
Gearing = Net interest-bearing debt × 100
Total equity
Equity-to-assets ratio = Total equity × 100
Total assets - advances received
Return on investment = Operating profit + finance × 100
income
Total assets - non interest-bearing
debt (average for the period)
Return on equity = Profit for the period × 100
Total equity (average for the
period)
Research and development = Research and development expenses
expenses in the income statement
(including expenses covered by
grants received)
Earnings per share = Profit for the period attributable
to the equity holders of the parent
company
Average number of shares during the
period, as adjusted for stock split
Dividend per share = Dividend for the financial year
Number of shares at the end of the
period, as adjusted for stock split
INTERIM REPORT JANUARY-SEPTEMBER 2009 BRIEFING
A briefing will be held in Helsinki, Finland, in which CEO Tapani
Järvinen and CFO Vesa-Pekka Takala will present Outotec's interim
report, and Outotec's new CEO as of January 1, 2010, Pertti Korhonen
will introduce himself.
BRIEFING
Date: Friday, October 23
Time: 2.00-3.30 pm (EEST)
Venue: Hotel Kämp, Meeting room Akseli Gallen-Kallela,
Pohjoisesplanadi 29, Helsinki
JOINING VIA WEBCAST
You may follow the briefing via a live webcast at www.outotec.com.
Please, click in and register approximately 5 to 10 minutes before
the briefing. The webcast will also be recorded and published on
Outotec's website for on demand viewing.
JOINING VIA TELECONFERENCE
You may also join the briefing by telephone. To register as a
participant for the teleconference and Q&A session, please dial in 5
to 10 minutes before the beginning of the event:
FI/UK: +44 20 7162 0025
US/CANADA: +1 334 323 6201
Password: Outotec
In addition, an instant replay service of the conference call will be
available until October 27, 2009 midnight on the following numbers:
UK: +44 20 7031 4064
US: 1 954 334 0342
Access code: 848264
The contact information is gathered for registration purposes only
and it is not used for commercial purposes.
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main media
www.outotec.com
Downloads
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