OUTOTEC OYJ STOCK EXCHANGE RELEASE 17 DECEMBER 2008 AT 8.30 AM
Outotec revises its order backlog guidance for 2008: year-end order backlog to be approximately EUR 1,200 million, sales and operating profit guidance unchanged
Increased uncertainty in general financial conditions in October and November have significantly hindered Outotec's customers' ability to arrange financing. Several customers have put on hold large investments until the market exhibits a pattern of stability before they continue with their final decision-making. As a result of this situation Outotec's management expects that the company's year-end 2008 order backlog will be approximately EUR 1,200 million. Previous guidance was that the closing order backlog for 2008 is estimated to exceed that of the previous year-end (2007: EUR 1,317.2 million). The guidance for sales and operating profit remains unchanged.
In October and November Outotec has received new orders worth EUR 78 million, which includes additional orders from Southern Peru Copper Corporation for the Tía María project in Peru announced in July 2008. In December, Outotec announced an order for the Siilinjärvi phosphate concentrator expansion (EUR 28 million) for Yara in Finland.
Outotec's order backlog is solid, which gives a strong platform for 2009. There have been a negligible number of order cancellations so far. In a few projects, there are ongoing negotiations regarding the timing of the project execution and delivery times. At the end of November 2008 order backlog included 25 projects with a value in excess of EUR 10 million, accounting for 62% of the total backlog. Mining and metallurgical companies, which are developing their first processing plant, account for roughly 3% of Outotec's backlog.
Revised outlook for 2008
- Sales are estimated to be approximately EUR 1,200 million (2007: EUR 1,000.1 million).
- Operating profit is estimated to be approximately EUR 120 million (2007: EUR 96.1 million).
- The closing order backlog for 2008 is estimated to be approximately EUR 1,200 million (2007: EUR 1,317.2 million).
Outotec will give more accurate information on the 2009 outlook on Friday, January 30, 2009 in connection with the financial statements review for January-December 2008.
For more information, please contact:
Vesa-Pekka Takala, CFO
tel. +358 20 529 211, mobile +358 40 5700074
Rita Uotila, Vice President - Investor Relations
tel. +358 20 529 2003, mobile +358 400 954141
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, mobile +358 400 817198
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