ITELLA CORPORATION STOCK EXCHANGE RELEASE FEBRUARY 11, 2010, AT 10 A.M.
Itella's Financial Statements Bulletin 2009: Building foundations for the future
Year 2009
- Itella Group's net sales amounted to EUR 1,819.7 million (EUR 1,952.9
million). Net sales fell by 6.8% and comparable net sales excluding the impact
of the previous year's acquisitions and divestments shrank by 11.4%.
International operations accounted for 30% of net sales.
- Consolidated operating profit including non-recurring items was EUR 46.7
million (EUR 69.0 million), or 2.6% (3.5%) of net sales. Operating profit
before non-recurring items amounted to EUR 86.3 million (EUR 95.1 million),
representing 4.7% (4.9%) of net sales.
- Personnel-related restructuring costs of EUR 29.0 million represented the
most significant non-recurring item. An impairment of EUR 10.6 million was
recorded on the goodwill of Itella Logistics' Russian business.
- The profitability of Itella Mail Communication declined. The volume of
addressed letters fell by 7%. A new sorting technology and carbon neutral
Itella Green delivery services were introduced.
- Itella Information's profitability improved and business operations were
expanded in Central Europe and in Russia.
- Itella Logistics' performance was negatively affected by the sharp fall in
volumes, reflecting the general trend in the industry.
- Itella's investments totaled EUR 144.9 million and they focused primarily on
postal services in Finland. This was the last year of major investments in
Itella Mail Communication's development program.
- The Board of Directors proposes that no dividend be paid.
- In connection with its financial statements, Itella will publish a Corporate
Governance report.
October-December 2009
- Net sales totaled EUR 491.0 million (EUR 561.4 million).
- Operating profit before non-recurring items amounted to EUR 39.4 million (EUR
27.0 million), representing 8.0% (4.8%) of net sales. The Group's operating
profit including non-recurring items was EUR 24.6 million (EUR 0.9 million), or
5.0% (0.2%) of net sales. Profit before taxes was EUR 22.2 million (EUR -26.8
million).
- Itella Corporation issued a EUR 150 million domestic bond, which was listed
on the Helsinki Stock Exchange maintained by NASDAQ OMX Helsinki Oy on December
17, 2009.
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| Key figures of Itella Group | 2009 | 2008 | 2007 |
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| Net sales, MEUR | 1,819.7 | 1 952.9 | 1 710.6 |
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| Operating profit (EBIT), MEUR | 46.7 | 69.0 | 101.8 |
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| EBIT margin, % | 2.6 | 3.5 | 6.0 |
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| Operating profit (EBIT), MEUR *) | 86.3 | 95.1 | 101.8 |
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| EBIT margin, % *) | 4.7 | 4.9 | 6.0 |
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| Profit before tax, MEUR | 19.6 | 46.6 | 109.5 |
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| Return on equity, % | -0.7 | 2.6 | 11.1 |
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| Return on investment, % | 5.8 | 12.4 | 15.6 |
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| Equity ratio, % | 48.5 | 51.1 | 65.9 |
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| Gearing, % | 19.7 | 14.8 | -36.4 |
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| Personnel on average | 30,217 | 28,163 | 25,623 |
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| Capital expenditure, MEUR | 144.9 | 351.5 | 94.2 |
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| Dividends, MEUR | - | 10.0 | 39.0 |
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| *) Excl. non-recurring items | | | |
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Jukka Alho, President and CEO:
"In 2009, we focused on building a competitive business for the future and on
adjusting operations to changes in demand. Despite the challenging market
situation, our profitability excluding non-recurring items was nearly on
previous year's level. Full-year earnings were taxed by significant
personnel-related non-recurring costs. In the final quarter, our efficiency
enhancement measures began to take effect and operative profitability
strengthened from the reference period a year earlier. All in all, Itella has
emerged from the economic slump as a financially sound company. This could be
attributed to our healthy cash flow, which remained steady despite the economic
turmoil.
Itella Information's business saw particularly positive development, and
profitability showed a marked improvement from the previous year. Itella Mail
Communication's net sales fell by 2.1 per cent. Even though the digitization of
invoicing and other transaction communication is now well and truly under way,
the impact of this trend on Itella's letter deliveries has been surprisingly
small. The delivery volume decline was very moderate considering the low
economic cycle. Itella Logistics' business depends heavily on industrial imports
and exports as well as on consumer goods trade. Volume reductions in the
logistics business have varied between 10 and 30 per cent, depending on the
business area.
According to the customer survey, consumers are more satisfied with Posti than
ever. 83 per cent evaluated Posti's service "good" or "excellent".
We are taking determined efforts to prepare Itella for the enforcement of the
new Postal Services Act at the beginning of 2011. For several years, we have
invested in the modernization of mail processing machinery and in measures to
boost our operational efficiency. NetPosti - our response to the digitization of
consumer transactions - has gained an established position in the market.
NetPosti will be equipped with the eInvoice receiving feature, which will make
it a unique service, even by international standards. We are in a position to
build such a service thanks to Itella IPS Oy (Itella Payment Services). IPS Oy
was established in 2009, and it was licensed by the Financial Supervisory
Authority to act as a payment institution and equipped with the necessary
technical production facilities in record time. We can now offer customers, both
businesses and consumers, more flexibility in their online transactions."
APPENDICES
Itella's full financial statements bulletin
Corporate Governance report
FINANCIAL CALENDER 2010
Annual Report 2009 will be published in week 11 (Finnish) and week 12 (Swedish,
English)
Interim Report Q1 on Friday, April 30
Interim Report Q2 on Wednesday, July 28
Interim Report Q3 on Wednesday October 27
FURTHER INFORMATION
Jukka Alho, President and CEO, tel. +358 20 451 5600,
jukka.alho@itella.com
Tuija Soanjärvi, CFO, tel. +358 20 45 20907,
tuija.soanjarvi@itella.com
http://www.itella.fi/group/english/financials
PHOTOS AND LOGOS
http://www.itella.fi/group/english/media/
Itella Group provides solutions for managing information and product flows.
Itella operates in mail communication, information logistics and logistics in
northern and central Europe, and in Russia. The Group employs some 30,000 staff
and reported net sales of EUR 1,820 million in 2009. Corporate services are
delivered under the Itella brand, while the Posti brand is used for services
targeted at consumers in Finland. More information on the Group is available at
www.itella.fi/group/english.
cg_report_2009_eng.pdf
itella_financial_statements_bulletin_2009.pdf
