Itella Corporation Interim Report Q1/2013
|Key figures of Itella Group||1-3/2013||1-3/2012||2012|
|Net sales, MEUR||496.0||485.3||1,946.7|
|Operating result (Non-IFRS), MEUR *)||12.4||22.8||53.2|
|EBIT margin (Non-IFRS), % *)||2.5||4.7||2.7|
|Operating result (EBIT), MEUR||10.8||21.0||39.0|
|EBIT margin, %||2.2||4.3||2.0|
|Result before income tax||7.7||19.3||30.8|
|Result for the financial period, MEUR||4.7||11.6||14.1|
|Return on equity (12 months), %||1.0||-1.9||2.1|
|Return on invested capital (12 months), %||3.5||2.0||4.6|
|Equity ratio, %||46.7||46.7||46.2|
|Gross capital expenditure, MEUR||11.0||21.7||134.7|
|Personnel on average||27,561||27,202||27,460|
|*) Non-IFRS = excluding non-recurring items|
Return on equity and return on invested capital is disclosed in the table as a rolling 12-month figure.
President and CEO Heikki Malinen:
"The net sales of Itella as a whole grew during the first quarter, largely due to VR Transpoint's groupage logistics business being integrated into Itella Logistics. Still, the company's operating result declined to nearly half of what is was during the corresponding period in 2012. This was attributable to the declining letter and magazine volumes of Itella Mail Communications as well as the logistics market, in which competition has become increasingly fierce.
The postal sector is undergoing a transition on the global scale and there are clear indications that digitization will have a substantial impact on volumes during the current decade.Consumer confidence in terms of personal finances seems to have deteriorated during early 2013. This is reflected indirectly in freight volumes and the turnover rates in the logistics of consumables. Competition in the logistics sector has furthermore increased. The growth in internet sales continued, having a positive effect on Itella's business. We continued our investment in the expansion of the network of automatic parcel terminals.
Itella's financial performance must be improved for the company to be able to carry out its long-term change processes, to finance investments that are essential in terms of its competitiveness, and to maintain the level of its services. With these needs and the challenges of the economic environment in mind, Itella's Board of Directors has specified the Group's long-term financial goals. The main focus of operations is shifting from growth to the improvement of profitability and maintenance of Group's good solvency.
As a related measure, we started a new performance improvement program aiming to increase efficiency in 2013 and 2014. The goal of the updated program is to achieve cost savings in the amount of EUR 100 million. A part of this program involves measures with which we strive to streamline our operations within, for instance, administration and other support functions. In addition, we are in the process of renewing our ICT operating model, in relation to which some ICT operations are being outsourced to IBM. In March, we made the decision to sell the entire share capital of Itella Bank Ltd to Savings Banks. This transaction was completed recently."
Itella's full Interim Report
President and CEO Heikki Malinen and CFO Sari Helander, tel. +358 20 452 3366 (MediaDesk)
NASDAQ OMX Helsinki
FINANCIAL CALENDAR 2013
Interim Report Q2/2013, July 24
Interim Report Q3/2013, October 30
PHOTOGRAPHS AND LOGOS
Itella Group provides solutions for managing information and product flows. Itella operates in the fields of mail communications, logistics, and financial management in Europe and Russia. Net sales in 2012 amounted to EUR 1,947 million. The number of staff is approximately 27,500. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. Further information is available online at www.itella.com.Itella_Q1-2013_Interim_Report.pdf