YIT OYJ YIT Corporation Stock exchange release
YIT's Half-year report January-
Satisfactory quarter driven by good housing results. Group adjusted operating profit at
- YIT's adjusted operating profit improved to
EUR 30 million (5). - Good results in the housing businesses.
- Infrastructure's adjusted operating profit at loss due to margin reductions on certain projects.
-
Solid operating cash flow after investments of
EUR 109 million (247). -
Net interest-bearing debt decreased to
EUR 353 million (715). Gearing continued to improve reaching 35% (73).
- Strong residential sales continued. Number of unsold completed apartments at a low level.
-
Housing start-ups in
Finland and CEE increased substantially to 1,878 (889). -
YIT signed a committed
EUR 300 million revolving credit facility linked to sustainability targets. - Measures to improve performance progressed at a fast pace. Focus on project management, operating model and Infrastructure business.
Ilkka Tomperi appointed as Executive Vice President of the Partnership properties segment as ofAugust 2021 .Pasi Tolppanen appointed as Executive Vice President of the Infrastructure segment as ofAugust 2021 .-
Tuomas Mäkipeska appointed as Chief Financial Officer as of beginning of
February 2022 at the latest.
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 |
Nordic paving and mineral aggregates businesses sold on
Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.
"YIT's second quarter was satisfactory in many ways. We swiftly took immediate measures to improve our performance, and the progress has been promising. Regarding the business performance, our cash flow was solid resulting in a lower net debt of
I am proud of the excellent work the organisation has done in responding to strong housing demand by boosting sales and margins in all regions. Supported by the strong balance sheet, we have accelerated our housing start-ups significantly and expect this trend to continue throughout the year. With this, we are answering to customer needs and ensuring our solid market position also for next year.
In Business premises, performance improvement continued. Last year, our profitability was burdened by certain financial settlements, and the positive adjusted operating profit in this year's second quarter is evidence that we are moving in the right direction. We are still finalising some old projects, but apart from these, Business premises' project portfolio is healthy.
In Infrastructure, we took control of the business and went through the entire project portfolio in detail and found several areas for improvement where management attention was needed. This led to margin reductions in some of the projects and consequently, Infrastructure's second quarter adjusted operating profit was negative. We expect challenges in Infrastructure to continue for the rest of the year while we are defining new direction for this business.
As Infrastructure strategy work has progressed, we have at this point made several important conclusions. First and foremost, we see that the Infrastructure business will continue to have a strategic role in the
However, as the performance of this segment has not been satisfactory, changes are needed. Going forward, our focus will be on our core capabilities, such as rock tunnelling, foundation engineering, rail & tram and urban bridges & marine. We will take a look at our offering to become more competitive and efficient and in particular, be more selective in projects. Our future Infrastructure business will be somewhat smaller than today, but clearly more predictable and profitable.
Parallel to the Infrastructure strategy efforts, we have taken swift measures in project management and our operating model. The work is progressing according to our plans, and we expect to communicate the outcomes over the next couple of months. While actions are still needed, I am confident that we have all it takes to achieve steady operational performance with an efficient cost structure which will be the key for our future success."
Results
April-June
At the end of the second 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-June
The Group's revenue was
The Group's adjusted operating profit amounted to
YIT's operating profit was
Guidance for 2021
In Housing Finland and CEE, housing completions in 2021 are expected to decrease compared to 2020 and volatility between the quarters is expected to be high. In the third quarter, the number of completions is estimated to decrease to approx. 300 units compared to 874 units in the third quarter of 2020, which is expected to have an approx.
For the full year, Housing Russia's solid underlying performance is estimated to continue. In Business premises, the stabilising development is expected to continue. The infrastructure segment is expected to be impacted by certain low performing projects during the second half of the year. In Partnership properties, portfolio development is expected to continue.
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.
Supported by the strong balance sheet, YIT has answered to market demand by significantly increasing its apartment start-ups. This is expected to tie up capital as the year progresses.
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: 42034878#.
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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