YIT Corporation Stock exchange release
YIT's Interim report January-
Good profitability progress continued in the third quarter. Group third quarter adjusted operating profit improved to
- YIT's third quarter adjusted operating profit improved to
EUR 18 million (16). -
Solid profitability in both housing segments with Housing Finland and CEE reaching adjusted operating profit of
EUR 17 million (16) and Housing Russia posting adjusted operating profit ofEUR 6 million (7). -
Business premises' adjusted operating profit improved significantly to
EUR 2 million (-19). -
Infrastructure's adjusted operating profit remained positive at
EUR 3 million (10) despite margin reductions in certain old projects. -
Net interest-bearing debt at
EUR 411 million (740), gearing at 40% (84).
- Strong residential sales continued. Number of unsold completed apartments at a low level.
-
Housing start-ups in
Finland and CEE continued to increase to 2,025 (1,634). -
Plot reserve stood at
EUR 787 million (852) at the end of the quarter.
-
Co-operation negotiations concluded in
Finland , allowing YIT to align its organisation with a renewed operating model. The estimated number of personnel reductions is a maximum of 230 employees throughoutYIT Group out of which a maximum of 190 employees inFinland . -
Tuomas Mäkipeska takes up position as Chief Financial Officer on
1 November 2021 .
Key figures
EUR million | 4-6/21 | 4-6/20 | 1-6/21 | 1-6/20 | 1-12/20 |
Revenue | 733 | 700 | 1,339 | 1,407 | 3,069 |
Operating profit | 25 | 0 | 40 | -4 | 35 |
Operating profit margin, % | 3.5 | 0.0 | 3.0 | -0.3 | 1.1 |
Adjusted operating profit | 30 | 5 | 51 | 13 | 85 |
Adjusted operating profit margin, % | 4.1 | 0.7 | 3.8 | 0.9 | 2.8 |
Result before taxes | 17 | -8 | 23 | -25 | -6 |
Result for the period, continuing operations | 11 | -9 | 15 | -18 | -8 |
Result for the period, including discontinued operations | 11 | 45 | 15 | 13 | 27 |
Earnings per share, EUR | 0.05 | 0.22 | 0.06 | 0.06 | 0.13 |
Operating cash flow after investments | 109 | 247 | 178 | 199 | 336 |
Net interest-bearing debt | 353 | 715 | 353 | 715 | 628 |
Gearing ratio, % | 35 | 73 | 35 | 73 | 68 |
Equity ratio, % | 41 | 33 | 41 | 33 | 33 |
Return on capital employed, % (ROCE, rolling 12 months) | 8.0 | 9.5 | 8.0 | 9.5 | 5.2 |
Order book | 3,890 | 4,074 | 3,890 | 4,074 | 3,528 |
Combined lost time injury frequency (LTIF, rolling 12 months) | 10.2 | 10.0 | 10.2 | 10.0 | 9.8 |
Customer satisfaction rate (NPS) | 51 | 53 | 51 | 53 | 51 |
"YIT's good progress in improving profitability continued in the third quarter. The Group's adjusted operating profit was
This good performance is the result of solid earnings development in the housing segments, as well as our rigorous work to stabilise performance in Business premises. Our housing market presence is solid in the selected cities in which we operate in
In the third quarter, our housing completions reached their low point based on the decision to momentarily cease start-ups during the spring 2020 in the midst of the COVID-19 pandemic. Despite this, the Housing Finland and CEE segment's third quarter adjusted operating profit was firmly positive, which reflects improved margins, a more favourable sales mix and better overall efficiency. At the same time, Housing Russia continued its stable performance with a satisfactory adjusted operating profit.
Business premises posted yet another positive quarter and improved its profitability significantly from last year's third quarter. However, the earnings level is not yet satisfactory due to some old low-margin projects which are still being finalised, but profitability is expected to gradually improve as the segment continues its work in completing those projects. Infrastructure's third quarter adjusted operating profit was negatively impacted by margin reductions in certain projects; however, despite these, the result remained positive. This demonstrates that the underlying business which is based on our core competencies is healthy and, while certain old low-margin projects are impacting our profitability, the outlook for the business is positive.
Our focus to significantly improve our project management, as well as our operating model renewal continued in the third quarter. We concluded co-operation negotiations in
Simultaneously, we have worked on our new strategy. We will announce the new strategy and objectives prior to our Capital Markets Day which will be held on 23 November."
Results
July-September
At the end of the third quarter 2021, YIT's order book amounted to
The Group's revenue was
The Group's adjusted operating profit amounted to
YIT's operating profit was
January-September
The Group's revenue was
The Group's adjusted operating profit amounted to
YIT's operating profit was
Guidance for 2021
In the fourth quarter, housing completions in Housing Finland and CEE are expected to be at a high level. Housing
YIT expects its full-year 2021 adjusted operating profit to be higher than in 2020 (EUR 85 million).
The result is dependent on certain project completions and contract closings towards the end of the year. Temporary shutdowns or slower progress on construction sites and delayed completions due to the COVID-19 pandemic could lead to the postponement of revenue and profit from one quarter or year to another. Changes in market yields or estimated future cash flows may have impacts on the fair value of the investments.
YIT aims at transferring increased construction material costs into contracting and housing prices. Thus, YIT expects it to have only minor impact on its earnings during the rest of the year.
Supported by a strong balance sheet, YIT has answered to market demand by significantly increasing its apartment start-ups in
News conference for investors and media
YIT will arrange a news conference on Friday,
The news conference can be participated also through a conference call. Questions can be asked via the conference call and should be asked in English. At the end of the event, the media has the opportunity to ask questions also in Finnish.
Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at
- Participants from
Finland +358 (0)9 8171 0310 -
Participants from
Sweden +46 (0)8 5664 2651 -
Participants from
UK and outside of Nordic countries +44 (0)33 3300 0804 - Participants from US +1 (0)63 1913 1422
The participants will be asked to provide the following confirmation code: 57113104#.
The event is targeted for analysts, portfolio managers and the media. Welcome!
For further information:
YIT Corporation
Vice President, Investor Relations
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and a significant North European urban developer and construction company. Our goal is to create more sustainable, functional and attractive cities and living environments. We develop and build apartments, business premises and entire areas. We also specialise in demanding infrastructure construction. We own properties together with our partners, which supports the implementation of our significant development projects. We also provide our customers with services that increase the value of properties. We employ approximately 7,400 professionals in ten countries:
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