July 24, 2009
INTERIM REPORT JANUARY-JUNE 2009
OOUTOTEC OYJ INTERIM REPORT JULY 24, 2009 AT
9:00 AM
INTERIM REPORT JANUARY-JUNE 2009
Challenging market continued - profitability remained at a good level
Reporting period Q1-Q2/2009 in brief (Q1-Q2/2008):
* Sales: EUR 469.2 million (EUR 501.0 million)
* Operating profit: EUR 30.2 million (EUR 43.8 million)
* Profit before taxes: EUR 31.6 million (EUR 50.0 million)
* Earnings per share: EUR 0.53 (EUR 0.83)
* Order intake: EUR 245.1 million (EUR 774.2 million)
* Order backlog: EUR 966.6 million (EUR 1,548.4 million)
* Net cash flow from operating activities: EUR 12.6 million
(EUR 124.2 million)
Q2/2009 in brief (Q2/2008):
* Sales: EUR 237.6 million (EUR 275.5 million)
* Operating profit: EUR 13.9 million (EUR 22.9 million)
* Profit before taxes: EUR 13.6 million (EUR 26.8 million)
* Order intake: EUR 105.8 million (EUR 475.4 million)
* Net cash flow from operating activities: EUR 23.4 million
(EUR 83.6 million)
Outotec reiterates its outlook for 2009.
CEO Tapani Järvinen:
"Difficult market conditions continued in our core market, the mining
and metals industry. Our customers' decision-making has slowed down
and companies are experiencing difficulties in obtaining funding with
reasonable terms for their projects. Our order intake was low in the
first half of the year. Sales have declined only slightly but are
still at a good level as we continue to execute our large order
backlog. Profitability suffered from lower business volume and lack
of major project completions. We have been adjusting our operations
to the changing market by reducing the number of temporary employees
and subcontractors in the first half of the year and we are prepared
to increase our cost-saving measures.
However, it is equally important for us to maintain our delivery
capabilities and technological competitive advantages as well as to
be prepared to capitalize on growth opportunities. We have been
strengthening our presence in India, China and CIS, and we have also
developed our offerings for the energy and industrial water treatment
sectors and our efforts have already reaped benefits. On July 10,
Outotec and Eesti Energia signed a EUR 110 million contract for a new
oil shale processing plant and agreed on a joint venture to sell the
new technology globally. I am also pleased that our services business
continues to grow. Our customers always have a need for various
services, spare parts and equipment."
Summary of key figures Q2 Q2 Q1-Q2 Q1-Q2 Last 12 Q1-Q4
2009 2008 2009 2008 months 2008
Sales, EUR million 237.6 275.5 469.2 501.0 1,186.1 1,217.9
Gross margin, % 18.3 20.3 19.3 20.3 21.1 21.5
Operating profit, EUR 13.9 22.9 30.2 43.8 106.6 120.2
million
Operating profit 5.9 8.3 6.4 8.7 9.0 9.9
margin, %
Profit before taxes, 13.6 26.8 31.6 50.0 117.9 136.3
EUR million
Net cash from operating 23.4 83.6 12.6 124.2 -5.0 106.6
activities, EUR million
Net interest-bearing
debt at the end of -278.3 -358.5 -278.3 -358.5 -278.3 -314.6
period, EUR million
Gearing at the end of -127.1 -180.4 -127.1 -180.4 -127.1 -139.0
period, %
Working capital at the
end of period, EUR -150.7 -240.3 -150.7 -240.3 -150.7 -171.2
million
Return on investment, % 30.8 60.0 30.9 50.1 56.8 61.6
Return on equity, % 17.9 39.6 19.6 33.8 38.7 42.6
Order backlog at the 966.6 1,548.4 966.6 1,548.4 966.6 1,176.7
end of period, EUR
million
Order intake, EUR 105.8 475.4 245.1 774.2 624.7 1,153.8
million
Personnel, average for 2,540 2,545 2,569 2,365 2,585 2,483
the period
Earnings per share, EUR 0.22 0.44 0.53 0.83 1.94 2.25
INTERIM REPORT JANUARY-JUNE 2009
MARKETS
The investment activity within the mining and metals industry
continues to be low. Customers are still experiencing difficulties in
arranging funding for projects. Yet, prices for most metals have
further climbed in the second quarter and are at a good level by
historical standards, which has improved the financial position of
many mining companies. In addition, some companies have been forced
to sell their assets in order to strengthen their balance sheets or
to secure refinancing. Although metal prices are on a good level at
the moment, many production plants have idle capacity, which is
slowing down new investments.
The developing economies continue to have a high demand for metals.
According to market research, China is consuming roughly 35-50% of
all metals produced globally. India continues to develop its
infrastructure utilizing its large natural resource base for instance
for coal, steel raw materials, aluminum, copper and zinc production.
Chile and Peru also continue to invest in their copper and gold
projects.
Many of Outotec's customers are evaluating their project scopes and
prices but the decision-making process is slow. Although many planned
greenfield projects are on hold at the moment, there is a continuous
demand for modernization and debottlenecking at mine sites and metals
processing plants as well as a demand 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 the treatment of water at mining
and metallurgical plants. 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 offers applications and services
for oil shale processing and bio-energy production through recent
joint ventures. The new and sustainable Enefit technology, developed
jointly by Outotec and Eesti Energia, is expected to result in many
business opportunities within the energy sector. In Estonia alone,
there is a potential to use the new technology to build several
plants. Furthermore, various industrial water treatment solutions can
be offered to existing and new customers. 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 245.1 million
(Q1-Q2/2008: EUR 774.2 million) including plant deliveries, several
smaller equipment deliveries and services to existing customers. The
orders received in the second quarter came to EUR 105.8 million
(Q2/2008: EUR 475.4 million) and included smaller equipment, spare
parts and services.
There were no major orders in the second quarter.
Major new orders in the first quarter included:
* delivery of a 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
* delivery of 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
966.6 million (June 30, 2008: EUR 1,548.4 million), representing a
38% 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 69% of the total backlog. According to a management
estimate, roughly 40% 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 3% 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 469.2 million
(Q1-Q2/2008: EUR 501.0 million), which was 6% lower than in the
comparison period. Sales for the second quarter were EUR 237.6
million (Q2/2008: EUR 275.5 million). The decline in sales resulted
from the smaller order backlog, especially in the Base Metals
division, and rescheduling of some major projects.
The Services business, which is included in the divisions' and other
businesses' sales figures, totaled EUR 73.4 million in the reporting
period (Q1-Q2/2008: EUR 51.6 million), up 42% from the comparison
period. The sales volume of the Services business in the second
quarter totaled EUR 42.5 million (Q2/2008: EUR 30.8 million). Part of
the increase came from Outotec Auburn, which was acquired in October
2008.
The operating profit for the reporting period was EUR 30.2 million
(Q1-Q2/2008: EUR 43.8 million), representing 6.4% of sales
(Q1-Q2/2008: 8.7%). The operating profit includes EUR 2.5 million
one-time positive effect from the amicable settlement of all disputes
related to the Pattison Sand project. The gains related to currency
forward contracts, which are not included in the hedge accounting,
increased profitability by EUR 0.9 million (Q1-Q2/2008: gains of EUR
2.3 million). The operating profit in the second quarter was EUR 13.9
million (Q2/2008: EUR 22.9 million). The decrease resulted from the
lower sales volume, decreased license fee income, fewer project
completions and higher fixed costs.
In the reporting period, Outotec's fixed costs were EUR 4.5 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, and development of the Services
business worldwide.
Outotec's profit before taxes for the reporting period was EUR 31.6
million (Q1-Q2/2008: EUR 50.0 million). Profit before taxes was
impacted favorably by the net financial income of EUR 1.4 million
(Q1-Q2/2008: EUR 6.1 million) from the high net cash position. The
decline in net financial income is mainly caused by lower interest
rates. Net profit for the period was EUR 21.8 million (Q1-Q2/2008:
EUR 34.9 million). Taxes totaled EUR 9.8 million (Q1-Q2/2008: EUR
15.0 million). This represents an effective tax rate of 30.9%.
Earnings per share were EUR 0.53 (Q1-Q2/2008: EUR 0.83).
Outotec's return on equity for the reporting period was 19.6%
(Q1-Q2/2008: 33.8%), and return on investment was 30.9% (Q1-Q2/2008
50.1%).
Sales and operating profit by segment Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Sales
Minerals Processing 91.1 92.7 175.6 152.8 419.6
Base Metals 29.6 72.0 74.4 132.0 295.3
Metals Processing 103.4 109.2 200.6 213.9 494.7
Other Businesses 20.0 16.7 38.3 25.8 56.0
Unallocated items*) and intra-group -6.5 -15.0 -19.7 -23.4 -47.7
sales
Total 237.6 275.5 469.2 501.0 1,217.9
Operating profit
Minerals Processing 7.9 3.2 14.0 7.3 22.5
Base Metals -0.4 11.9 3.9 18.2 48.7
Metals Processing 9.3 11.8 18.2 24.1 61.1
Other Businesses -0.1 1.2 -0.5 1.6 3.9
Unallocated**) and intra-group items -2.7 -5.1 -5.5 -7.3 -16.0
Total 13.9 22.9 30.2 43.8 120.2
*) 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 grew
15% from the comparison period and totaled EUR 175.6 million
(Q1-Q2/2008: EUR 152.8 million). Operating profit was EUR 14.0
million (Q1-Q2/2008: EUR 7.3 million). The growth in sales resulted
from a high starting order backlog, good project execution and
reduced bottlenecks in the delivery pipeline. Operating profit for
the reporting period includes EUR 2.5 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 a realized and unrealized gain of EUR 0.1 million related to
currency forward contracts (Q1-Q2/2008: realized and unrealized gains
of EUR 3.7 million).
Base Metals
The Base Metals division's sales in the reporting period decreased by
44% from the comparison period and totaled EUR 74.4 million
(Q1-Q2/2008: EUR 132.0 million). The decrease in sales was mainly due
to lower order intake since September 2008, lower order backlog, and
rescheduling of some projects. The operating profit was EUR 3.9
million (Q1-Q2/2008: EUR 18.2 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. Operating profit for the reporting period also included a
realized and unrealized loss of EUR 1.1 million related to currency
forward contracts (Q1-Q2/2008: realized and unrealized loss of EUR
1.0 million).
Metals Processing
The Metals Processing division's sales in the reporting period
decreased 6% from the comparison period to EUR 200.6 million
(Q1-Q2/2008: EUR 213.9 million). Operating profit came to EUR 18.2
million (Q1-Q2/2008: EUR 24.1 million). Operating profit declined
because of lower sales volume and decreased license fee income.
Operating profit for the reporting period also included realized and
unrealized gains of EUR 2.0 million related to currency forward
contracts. (Q1-Q2/2008: realized and unrealized loss of EUR 1.5
million).
BALANCE SHEET, FINANCING, AND CASH FLOW
Net cash flow from operating activities in the reporting period was
positive at EUR 12.6 million (Q1-Q2/2008: EUR 124.2 million). The
change was mainly caused by increase in working capital in 2009 as
compared to the significant decrease in working capital in 2008. 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).
At the end of reporting period, Outotec's cash and cash equivalents
totaled EUR 281.6 million (June 30, 2008: EUR 358.0 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 June 30, 2009, no
money market investment had remaining maturity exceeding three
months.
Outotec's working capital amounted to EUR -150.7 million on June 30,
2009 (June 30, 2008: EUR -240.3 million). The change in working
capital was caused by 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 June 30, 2009
came to EUR -278.3 million (June 30, 2008: EUR -358.5 million). The
advances received at the end of the reporting period totaled EUR
248.3 million (June 30, 2008: EUR 298.1 million), representing a
decrease of 17% from the comparison period. Outotec's gearing at the
end of the reporting period was -127.1% (June 30, 2008:
-180.4%), and the equity-to-assets ratio was 40.2% (June 30, 2008:
40.0%).
The company's capital expenditure in the reporting period was EUR 9.2
million (Q1-Q2/2008: EUR 6.3 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
328.2 million (June 30, 2008: EUR 415.6 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) 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.
EXPANSION OF BUSINESS NETWORK
In May, Outotec announced the 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 as well as having 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 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 10.9 million (Q1-Q2/2008: EUR 9.9
million), representing 2.3% of sales (Q1-Q2/2008: 2.0%). Outotec
filed 31 new priority patent applications (Q1-Q2/2008: 20), and 95
new national patents (Q1-Q2/2008: 119) were granted.
In May, Outotec and Real Time Systems Oy agreed to cooperate in the
development of a new-generation measuring and regulating system for
electric arc furnaces, which are used in steel mills in the
production of steel from scarp. The overall savings gained with the
new product will be significant for the furnace operators.
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.
As part of the expansion, the Swedish joint venture GreenExergy AB
offers 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 designed individually, 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 2,549
employees (June 30, 2008: 2,667). 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 2,569 employees (Q1-Q2/2008: 2,365). The average number of
personnel increased by 204 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.
June 30, June 30,
Distribution of personnel by country 2009 2008 change %
Finland 909 934 -2.7
Germany 400 350 14.3
Rest of Europe 240 241 -0.4
Americas 643 809 -20.5
Australia 199 205 -2.9
Rest of the world 158 128 23.4
Total 2,549 2,667 -4.4
The number of employees has declined by 125, or 5%, 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 June 2009, the company had, in addition to the personnel
on Outotec's payroll, approximately 350 (March 31, 2009: 520)
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 80.4 million (Q1-Q2/2008: EUR 76.7 million).
APPOINTMENT OF NEW CEO
On June 4, 2009, Outotec's Board of Directors appointed Mr. Pertti
Korhonen, 47, M. Sc. (Electronics Eng.), as the new president and
Chief Executive Officer of Outotec Oyj. Mr. Korhonen will join
Outotec on September 1, 2009, and will begin serving as Chief
Operating Officer on October 1, 2009 and then finally 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 determine
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 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.
The authorization shall be valid until the next Annual General
Meeting. These authorizations have not been exercised as of July 24,
2009.
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 14.16, the highest quotation for a share
was EUR 19.48 and the lowest EUR 9.30. The trading of Outotec shares
in the reporting period exceeded 57.1 million shares, with a total
value of over EUR 810.5 million. On June 30, 2009, Outotec's market
capitalization was EUR 709.8 million and the last quotation for the
share was EUR 16.90. On June 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 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. On June 30, 2009, Outotec had
15,027 shareholders and shares held in 14 nominee registers accounted
for some 60% of all Outotec shares.
EVENTS AFTER THE REPORTING PERIOD
In July, Outotec reached an agreement with Eesti Energia for the
design, delivery and construction of a new oil shale processing plant
to be built in Narva, Estonia. The contract is valued at
approximately EUR 110 million. Outotec has already done basic
engineering for the same plant, which is scheduled for commissioning
in early 2012.
Outotec and Eesti Energia entered into a joint venture for the
commercialization of new sustainable oil shale processing technology.
Eesti Energia has a 60% stake in the new company with Outotec owning
the remaining 40%. Under the new partnership, the goal is to become a
significant supplier of oil shale technology solutions, benefiting
from Eesti Energia's experience in oil shale mining and processing
and Outotec's expertise in fluidized bed technologies, engineering
and project implementation.
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 down-turn may further reduce
the demand for Outotec's products and services impacting order intake
in 2009. The demand for export credits has increased in the reporting
period. 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 the
effectiveness of orders. Outotec's gross margin is impacted by
product mix and license fee income related to certain technologies.
Lack of these type of orders reduce the amount of license fee and
subsequently gross margin.
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 second 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. Based on the latest assessment,
further postponements, suspensions and cancellations may still occur.
In the second 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 the 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 hedged selectively and 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. High exposure to on-demand guarantees may also
increase the risk of claims. 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,Turkey's the Appellate Court of Istanbul
has ruled in the favor of Bagfas in the pending dispute between
Nordea and Bagfas. 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. The
settlement between Nordea and Outotec had no significant impact on
the second-quarter results because of provisions previously accrued.
The arbitration proceedings between Outotec and Bagfas continue and
Outotec has lodged an additional claim to cover the losses incurred
in Turkey. Management believes 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 first half year
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 July 24, 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 Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Sales 237.6 275.5 469.2 501.0 1,217.9
Cost of sales -194.1 -219.6 -378.5 -399.1 -956.2
Gross profit 43.5 55.9 90.7 101.9 261.7
Other income 3.6 0.0 4.2 3.4 0.9
Selling and marketing expenses -13.1 -11.0 -26.3 -21.9 -48.0
Administrative expenses -13.5 -14.7 -26.7 -27.6 -55.1
Research and development expenses -5.8 -5.3 -10.9 -9.9 -20.2
Other expenses -0.8 -2.0 -0.8 -2.1 -19.1
Operating profit 13.9 22.9 30.2 43.8 120.2
Finance income and expenses
Interest income and expenses 1.4 3.9 3.2 7.6 16.4
Market price gains and losses -0.7 0.9 0.3 0.4 3.2
Other finance income and -1.1 -0.8 -2.2 -1.9 -3.4
expenses
Net finance income -0.3 4.0 1.4 6.1 16.1
Profit before income taxes 13.6 26.8 31.6 50.0 136.3
Income tax expenses -4.3 -8.2 -9.8 -15.0 -42.4
Profit for the period 9.3 18.7 21.8 34.9 93.9
Other comprehensive income
Exchange differences on
translating foreign 7.5 3.9 11.1 -1.8 -21.7
operations
Cash flow hedges 2.5 -1.4 1.4 2.2 -12.6
Income tax relating to cash -0.6 0.4 -0.1 -0.6 3.1
flow hedges
Available for sale financial -0.0 -0.7 -0.2 -1.9 -2.1
assets
Other comprehensive income for 9.4 2.1 12.3 -2.2 -33.3
the period
Total comprehensive income for 18.7 20.8 34.1 32.8 60.6
the period
Profit for the period
attributable to:
Equity holders of the parent 9.3 18.7 21.8 35.0 94.0
company
Minority interest - - - -0.0 -0.0
Total comprehensive income for
the period attributable to:
Equity holders of the parent 18.7 20.8 34.1 32.8 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 0.22 0.44 0.53 0.83 2.25
Diluted earnings per share, EUR 0.22 0.44 0.53 0.83 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 Financial June 30, June 30, December 31,
Position
EUR million 2009 2008 2008
ASSETS
Non-current assets
Intangible assets 82.9 74.3 81.4
Property, plant and equipment 32.1 25.1 29.5
Non-current financial assets
Interest-bearing 0.4 1.7 0.5
Non interest-bearing 23.3 15.2 21.3
Total non-current assets 138.7 116.3 132.7
Current assets
Inventories *) 102.2 93.9 87.7
Current financial assets
Interest-bearing 0.5 0.7 0.4
Non interest-bearing 269.8 225.9 323.2
Cash and cash equivalents 281.6 358.0 317.8
Total current assets 654.2 678.4 729.1
TOTAL ASSETS 792.9 794.7 861.8
EQUITY AND LIABILITIES
Equity
Equity attributable to the equity 219.0 198.7 226.4
holders of the parent company
Total equity 219.0 198.7 226.4
Non-current liabilities
Interest-bearing 2.3 1.2 2.6
Non interest-bearing 72.3 67.6 74.3
Total non-current liabilities 74.6 68.7 76.9
Current liabilities
Interest-bearing 1.9 0.7 1.5
Non interest-bearing
Advances received **) 248.3 298.1 214.0
Other non interest-bearing 248.9 228.5 343.0
liabilites
Total current liabilities 499.2 527.3 558.4
Total liabilities 573.8 596.0 635.4
TOTAL EQUITY AND LIABILITIES 792.9 794.7 861.8
*) Of which advances paid for inventories amounted to EUR 25.3
million at June 30, 2009 (June 30, 2008: EUR 16.7 million and at
December 31, 2008: EUR 16.4 million).
**) Gross advances received before percentage of completion revenue
recognition amounted to EUR 1,070.0 million at June 30, 2009 (June
30, 2008: EUR 907.8 million and at December 31, 2008: EUR 909.3
million).
Condensed Statement of cash flows Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2009 2008 2008
Cash flows from operating activities
Profit for the period 21.8 34.9 93.9
Adjustments for
Depreciation and amortization 5.8 5.9 11.0
Other adjustments 10.9 9.6 13.5
Increase (-) / decrease (+) in working capital -16.3 86.7 7.9
Interest received 3.7 7.7 17.2
Interest paid -0.4 -0.1 -0.4
Income tax paid -13.0 -20.4 -36.6
Net cash from operating activities 12.6 124.2 106.6
Purchases of assets -9.0 -6.4 -15.2
Acquisition of subsidiaries, net of cash -2.8 - -7.6
Proceeds from sale of assets 0.4 0.1 0.7
Change in other investing activities -0.0 - -
Net cash used in investing activities -11.5 -6.4 -22.1
Cash flow before financing activities 1.1 117.9 84.5
Borrowings (+) / repayments (-) of non-current debt -0.1 -0.2 0.2
Increase in current debt 0.7 - 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 -44.6 -49.3 -47.3
Net change in cash and cash equivalents -43.5 68.6 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 7.4 -1.6 -10.5
equivalents
Net change in cash and cash equivalents -43.5 68.6 37.3
Cash and cash equivalents at the end of the period 281.6 358.0 317.8
+--------------------------------+
| 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 - - - -0.4 - -1.8 35,0 -0.0 32.8
period
Other changes - - - - - - 0.2 - 0.2
Equity at June 30, 16.8 20.2 0.2 7.5 -9.3 3.9 159.4 - 198.7
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 - - - - - - -0.1 - -0.1
received services
Total comprehensive
income for the - - - 1.1 - 11.1 21.8 - 34.1
period
Other changes - - - - - - 0.6 - 0.6
Equity at June 30, 16.8 20.2 0.1 -2.6 -4.6 -4.9 193.9 - 219.0
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 Q2 Q2 Q1-Q2 Q1-Q2 Last 12 Q1-Q4
2009 2008 2009 2008 months 2008
Sales, EUR million 237.6 275.5 469.2 501.0 1 186.1 1 217.9
Gross margin, % 18.3 20.3 19.3 20.3 21.1 21.5
Operating profit, EUR 13.9 22.9 30.2 43.8 106.6 120.2
million
Operating profit 5.9 8.3 6.4 8.7 9.0 9.9
margin, %
Profit before taxes, 13.6 26.8 31.6 50.0 117.9 136.3
EUR million
Profit before taxes in 5.7 9.7 6.7 10.0 9.9 11.2
relation to sales, %
Net cash from operating 23.4 83.6 12.6 124.2 -5.0 106.6
activities, EUR million
Net interest-bearing
debt at the end of -278.3 -358.5 -278.3 -358.5 -278.3 -314.6
period, EUR million
Gearing at the end of -127.1 -180.4 -127.1 -180.4 -127.1 -139.0
period, %
Equity-to-assets ratio 40.2 40.0 40.2 40.0 40.2 35.0
at the end of period, %
Working capital at the -150.7 -240.3 -150.7 -240.3 -150.7 -171.2
end of period, EUR
million
Capital expenditure, 4.5 3.0 9.2 6.3 26.8 23.9
EUR million
Capital expenditure in 1.9 1.1 2.0 1.3 2.3 2.0
relation to sales, %
Return on investment, % 30.8 60.0 30.9 50.1 56.8 61.6
Return on equity, % 17.9 39.6 19.6 33.8 38.7 42.6
Order backlog at the 966.6 1 548.4 966.6 1,548.4 966.6 1,176.7
end of period, EUR
million
Order intake, EUR 105.8 475.4 245.1 774.2 624.7 1,153.8
million
Personnel, average for 2,540 2,545 2,569 2,365 2,585 2,483
the period
Profit for the period 3.9 6.8 4.7 7.0 6.8 7.7
in relation to sales, %
Research and 5.8 5.3 10.9 9.9 21.2 20.2
development expenses,
EUR million
Research and
development expenses in 2.4 1.9 2.3 2.0 1.8 1.7
relation to sales, %
Earnings per share, EUR 0.22 0.44 0.53 0.83 1.94 2.25
Equity per share, EUR 5.26 4.73 5.26 4.73 5.26 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 Q1-Q2 Q1-Q2 Q1-Q4
profit
EUR million 2009 2008 2008
Loss on sale of Intune Circuits Ltd. - -1.0 -1.1
Arbitration settlement 2.5 - -8.5
Income tax expenses Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2009 2008 2008
Current taxes -9.0 -8.5 -37.4
Deferred taxes -0.8 -6.6 -5.0
Total income tax expenses -9.8 -15.0 -42.4
Property, plant and equipment June 30, June 30, December 31,
EUR million 2009 2008 2008
Historical cost at the beginning of 87.6 81.3 81.3
the period
Translation differences 1.9 -1.0 -3.3
Additions 5.3 4.7 10.7
Disposals -0.6 -0.8 -3.3
Acquired subsidiaries - - 2.1
Reclassifications 0.0 -0.1 0.0
Historical cost at the end of the 94.3 84.1 87.6
period
Accumulated depreciation and
impairment at the beginning of the -58.1 -56.7 -56.7
period
Translation differences -1.0 0.6 2.0
Disposals 0.2 0.7 3.1
Reclassifications 0.0 -0.0 0.0
Depreciation during the period -3.3 -3.6 -6.4
Accumulated depreciation and
impairment at the end of the period -62.2 -59.0 -58.1
Carrying value at the end of the 32.1 25.1 29.5
period
Commitments and contingent liabilities June 30, June 30, December 31,
EUR million 2009 2008 2008
Pledges 1.8 1.6 3.0
Guarantees for commercial commitments 192.7 178.1 166.5
Minimum future lease payments on 66.1 43.2 68.7
operating 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 4.9 million at June 30, 2009 (June 30, 2008: EUR 4.3
million and at December 31, 2008: EUR 8.5 million) and for commercial
guarantees including advance payment quarantees EUR 328.2 million at
June 30, 2009 (June 30, 2008: EUR 415.6 million and at December 31,
2008: EUR 353.8 million).
Derivative instruments
Currency forwards June 30, June 30, December 31,
EUR million 2009 2008 2008
Fair values, net -6.0*) 17.5**) -12.7***)
Nominal values 345.5 382.1 378.3
*) of which EUR -2.8 million designated as cash flow hedges.
**) of which EUR 13.6 million designated as cash flow hedges.
***) of which EUR -5.1 million designated as cash flow hedges.
+------------------------------+
| Related party transactions |
|------------------------------|
| |
|------------------------------|
| Balances with key management |
+------------------------------+
At June 30, 2009, there was no outstanding loan payble to the
President of Auburn Group (December 31, 2008: EUR 2.2 million). The
payable was related to payment terms of Auburn Group acquisition. The
final loan payable was paid to the President of Auburn Group
according to acquisition contract during the second quarter of
2009.
Transactions and balances with associated companies Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2009 2008 2008
Trade and other receivables - 0.1 -
+-----------------------------+
| Business Combinations |
|-----------------------------|
| Acquisition of Auburn Group |
+-----------------------------+
Outotec acquired Auburn Group, on October 10, 2008. The company
provides maintenance and technical services for the mining and metals
industries mainly in Canada and Chile.
In 2008, the sales of Auburn Group was approximately EUR 20.0 million
(CAD 31.2 million) and the operating profit approximately EUR 0.1
million. The sales of the acquired Auburn Group for October 10, 2008
- December 31, 2008 totaled EUR 3.0 million and the operating profit
EUR -0.2 million. Outotec Auburn is reported in Other Businesses
segment.
The acquisition price was EUR 10.3 million (CAD 15.8 million). The
total acquision cost EUR 10.8 million includes also acquisition
related costs of EUR 0.5 million.
Fair values Carrying amounts
EUR million recorded on prior to
acquisition acquisition
Trademarks and patents (included in 0.7 -
intangible assets)
Customer contract and customer 0.6 -
relationships (included in intangible
assets)
Property, plant and equipment 2.3 2.3
Inventories 0.6 0.6
Trade and other receivables 3.9 3.9
Cash and cash equivalents 0.4 0.4
Total assets 8.5 7.2
Interest-bearing liabilities 0.9 0.9
Deferred tax liabilities 0.4 -
Trade and other payables 3.4 3.4
Total liabilities 4.7 4.2
Net assets 3.8 3.0
Acquisition cost 10.8
Goodwill 7.0
Acquisition cost, paid 10.8
Cash and cash equivalents in 0.4
subsidiaries acquired
Cash outflow on acquisition 10.4
Effect of Auburn Group acquisition on Outotec Group's sales and
operating profit in 2008
Outotec's sales for January 1, 2008 - December 31, 2008 would have
been EUR 1,234.9 million and operating profit EUR 120.5 million if
the acquisition carried out during the period had been completed on
January 1, 2008.
Segments' sales and operating profit by quarters
EUR million Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
Sales
Minerals 64.6 72.7 110.5 60.1 92.7 122.0 144.8 84.5 91.1
Processing
Base Metals 64.5 64.1 85.6 60.1 72.0 76.9 86.4 44.8 29.6
Metals 100.9 113.0 120.8 104.6 109.2 116.9 163.9 97.2 103.4
Processing
Other 8.9 11.1 11.1 9.1 16.7 11.4 18.8 18.3 20.0
Businesses
Unallocated
items *) and -11.7 -15.0 -12.5 -8.3 -15.0 -9.2 -15.1 -13.2 -6.5
intra-group
sales
Total 227.1 245.9 315.5 225.6 275.5 318.1 398.8 231.6 237.6
Operating
profit
Minerals 3.3 3.6 16.3 4.1 3.2 3.1 12.1 6.1 7.9
Processing
Base Metals 13.2 12.1 9.3 6.3 11.9 13.3 17.2 4.3 -0.4
Metals 10.5 11.5 11.5 12.3 11.8 14.9 22.1 8.9 9.3
Processing
Other 0.6 1.3 0.3 0.4 1.2 1.7 0.7 -0.4 -0.1
Businesses
Unallocated and
intra-group -4.1 -2.5 -4.4 -2.2 -5.1 -4.1 -4.6 -2.7 -2.7
items **)
Total 23.4 26.0 33.0 21.0 22.9 28.9 47.5 16.3 13.9
*) 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-JUNE 2009 BRIEFING
A briefing, at which CEO Tapani Järvinen and CFO Vesa-Pekka Takala
will present the interim report January-June 2009, will be held in
Helsinki, Finland.
BRIEFING
Date: Friday, July 24, 2009
Time: 2:00-3:00pm (EEST)
Venue: Hotel Kämp, Akseli Gallen-Kallela meeting room,
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: +1 877 491 0064
Password: Outotec
In addition, an instant replay service of the conference call will be
available until July 29, 2009 midnight on the following numbers:
UK: +44 20 7031 4064
US: 1 954 334 0342
Access code: 840286
The contact information is gathered for registration purposes only
and it is not used for commercial purposes.
FINANCIAL REPORTING SCHEDULE FOR 2009
Outotec will publish the following financial reports in 2009:
Interim Report for January-September 2009 on October 23
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main media
www.outotec.com
Downloads
| Name | |
|---|---|
| Outotecs Interim Report January-June 2009 | Download |