October 23, 2006
Outokumpu Technology's Interim Report January-September 2006
OUTOKUMPU TECHNOLOGY OYJ STOCK EXCHANGE RELEASE OCTOBER 23, 2006 AT 12.30 PM
Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.
JANUARY-SEPTEMBER 2006 INTERIM REPORT
High investment activity in mining and metals industries resulted in record high order intake and backlog Highlights of the reporting period (Q1-Q3) and the third quarter (Q3) (unaudited):
- Order intake in January-September 2006 doubled compared to the previous year totaling EUR 796.9 million (Q1-Q3/2005: EUR 418.7 million). The third quarter order intake of EUR 371.0 million (Q3/2005: EUR 140.7 million) was all-time high.
- Order backlog strengthened further to EUR 878.6 million at the end of September (September 30, 2005: EUR 524.5 million).
- Sales for Q1-Q3 grew by 43% from comparison period in 2005 and amounted to EUR 500.9 million (Q1-Q3/2005: EUR 349.8 million) with EUR 179.9 million attributable to the third quarter (Q3/2005: EUR 133.1 million).
- Operating profit improved to EUR 28.6 million (Q1-Q3/2005: EUR 2.1 million) with EUR 14.5 million generated in the third quarter (Q3/2005: EUR 5.5 million). Profit before taxes amounted to EUR 33.2 million (Q1-Q3/2005: EUR 4.3 million). Earnings per share were EUR 0.48 during the reporting period (Q1-Q3/2005: EUR 0.03).
- Net cash flow from operating activities totaled to EUR 20.4 million (Q1-Q3/2005: EUR -3.9 million).
- OTE1V - Outokumpu Technology's share was listed on the pre-list of the Helsinki Stock Exchange on October 10, 2006 and on the Nordic List on October 13, 2006.
CEO, Tapani Järvinen:
"The market situation has continued to be favorable for us, which is evidenced by many record high figures. Last twelve month sales climbed over 700 million euros and our operating profit topped 50 million euros resulting in operating profit margin of over 7%. In addition to better market conditions, our margin improvement is a result of a three-year internal efficiency improvement program started in 2003, which focused on improving resourcing and procurement. We see how the unprecedented demand for metals is led by high population economies such as China and India. In addition to building new plants, our customers are continuously looking at new technologies in order to expand their facilities and further develop their processes. We have been working hard and succeeded in capturing the momentum, and will continue to be a proactive player on the market."
"The market situation has continued to be favorable for us, which is evidenced by many record high figures. Last twelve month sales climbed over 700 million euros and our operating profit topped 50 million euros resulting in operating profit margin of over 7%. In addition to better market conditions, our margin improvement is a result of a three-year internal efficiency improvement program started in 2003, which focused on improving resourcing and procurement. We see how the unprecedented demand for metals is led by high population economies such as China and India. In addition to building new plants, our customers are continuously looking at new technologies in order to expand their facilities and further develop their processes. We have been working hard and succeeded in capturing the momentum, and will continue to be a proactive player on the market."
Summary of key figures
SHORT TERM OUTLOOK
Following a high order intake during the reporting period, the whole year sales and operating profit will be clearly better than in 2005. Profitability is expected to improve also in the last quarter of 2006. However, the fourth quarter operating profit of 2006 will settle somewhat below the fourth quarter of 2005, which included significant license fees and back-ended project completions. Furthermore, Outokumpu Technology's strong order backlog and order intake provide a solid basis for a good financial performance in 2007.
For further information, please contact:
Outokumpu Technology Oyj
Tapani Järvinen, CEO
tel. +358 20 529211
tel. +358 20 529211
Vesa-Pekka Takala, CFO
tel. +358 20 529211, mobile +358 40 5700074
tel. +358 20 529211, mobile +358 40 5700074
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 5292004, mobile +358 400 817198
tel. +358 20 5292004, mobile +358 400 817198
Rita Uotila, Vice President - Investor Relations
tel. +358 20 5292003, mobile +358 400 954141
e-mail: firstname.lastname (at) outokumputechnology.com
tel. +358 20 5292003, mobile +358 400 954141
e-mail: firstname.lastname (at) outokumputechnology.com
INVITATION TO ANALYST AND MEDIA BRIEFING
Analysts and media are invited to a briefing, at which CEO Tapani Järvinen and CFO Vesa-Pekka Takala will present the third quarter 2006 results.
Date: Monday, 23 October 2006
Time: 2.00 pm (GMT +2)
Venue: Hotel Kämp, Akseli Gallen-Kallela Room, Pohjoisesplanadi 29, Helsinki
Time: 2.00 pm (GMT +2)
Venue: Hotel Kämp, Akseli Gallen-Kallela Room, Pohjoisesplanadi 29, Helsinki
AUDIO WEB CAST
Outokumpu Technology will host a live audio webcast at
https://www.outokumpu.com/en
TELECONFERENCE
The briefing may be joined also by telephone. To register as a participant for the teleconference, please email your name and company details to ir(at)outokumputechnology.com.
The information is gathered for registration purposes only, and will not be used for commercial purposes.
Welcome!
Outokumpu Technology Oyj
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