YIT Corporation Stock exchange release
YIT's Interim report January-
Solid quarter driven by strong performance in Housing.
- Adjusted operating profit increased to
EUR 22 million (15). - Adjusted operating profit margin improved to 4.2% (2.7).
- Housing continued its strong performance.
- In Business Premises and Infrastructure, transformation progressed according to plan.
-
Result for the period, including discontinued operations, was
EUR -133 million (4), negatively impacted by an impairment ofEUR 152 million following the held for sale classification of the Russian businesses. -
Balance sheet remained strong. Net interest-bearing debt was at
EUR 338 million (439) and gearing at 41% (44). -
Strong order book of
EUR 3,756 million (31 Dec 2021 : 3,847). - Land bank amounted to 2,173,000 sqm, which enables the construction of approx. 32,000 new homes.
-
YIT announced after the reporting period on 1 April that it is selling its businesses in
Russia . The closing process is progressing but been slower than anticipated. The sale is expected to be closed during the second quarter of 2022. - Combined lost time injury frequency decreased to 10.5 (12.2)
Katja Ahlstedt was appointed as Executive Vice President, Human Resources. Katja joined the company on 1 April.-
Teemu Helppolainen, Executive Vice President, Housing Russia, leaves the company once the sale of YIT's businesses in
Russia has been completed.
Key figures
EUR million | 1-3/22 | 1-3/21 | 1-12/21 |
Revenue | 518 | 562 | 2,652 |
Operating profit | 22 | 10 | 56 |
Operating profit margin, % | 4.2 | 1.7 | 2.1 |
Adjusted operating profit | 22 | 15 | 85 |
Adjusted operating profit margin, % | 4.2 | 2.7 | 3.2 |
Result before taxes | 14 | 0 | 22 |
Result for the period, continuing operations | 12 | -1 | 6 |
Result for the period, including discontinued operations | -133 | 4 | 4 |
Earnings per share, continuing operations, EUR | 0.05 | 0.00 | 0.01 |
Operating cash flow after investments | -41 | 70 | 288 |
Net interest-bearing debt | 338 | 439 | 303 |
Gearing ratio, % | 41 | 44 | 30 |
Equity ratio, % | 34 | 37 | 40 |
Return on capital employed, % (ROCE, rolling 12 months) | 7.6 | - | 6.8 |
Order book | 3,756 | 3,506 | 3,847 |
Combined lost time injury frequency (LTIF, rolling 12 months) | 10.5 | 12.2 | 11.0 |
Customer satisfaction rate (NPS) | 53 | 50 | 51 |
From the first quarter of 2022 onwards, YIT has four reportable segments: Housing, Business Premises, Infrastructure and
Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.
Markku Moilanen, President and CEO
"YIT's first quarter was solid. The beginning of the year tends to be a low point in our industry, but with our focused strategy, we were able to utilise our capabilities successfully. As a result, our adjusted operating profit increased markedly from the previous year to
Our Housing business continued its very strong performance. Apartment completions decreased from last year's first quarter reflecting cautious start-up levels at the beginning of the COVID-19 pandemic. This had a negative impact on the revenue of the business during the first quarter. Nevertheless, the Housing segment's adjusted operating profit increased during the period. This reflects not only the improved sales mix but also the rigorous work the segment has done to improve efficiency and focus on its core capabilities.
In Business Premises and Infrastructure, the transformation is progressing according to plan. Both segments posted positive adjusted operating profits in the first quarter demonstrating that our decisive actions in these businesses are well under way.
Overall, the first quarter was highlighted by the escalation of the geopolitical situation. This quarter will be remembered for the human distress and suffering we have all witnessed in
At YIT, our highest priority has been to ensure the health and safety of our employees. At the same time, we accelerated the strategic review of our businesses in
The crisis in
While the near-term outlook is subdued, the mid- and long-term prospects for our industry remain positive. Urbanisation continues and the need for more sustainable living is increasing. These megatrends will support the market over the cycle, and our strategy is spot-on when it comes to meeting higher demand and the changing needs of society.
Our strategy is the right one. Actions to improve efficiency and reduce costs will help us to stay competitive even if the market weakens. For us, the main priority is to continue focusing on our profitable core and execute our strategy to deliver predictable, market-leading results."
Results
January-March
YIT's order book amounted to
The Group's revenue decreased by 8% to
The Group's adjusted operating profit increased to
YIT's operating profit was
Guidance for 2022
In Housing, completions of consumer apartments are expected to decrease compared to 2021. In Business Premises, operational performance will continue to improve. Infrastructure will gradually improve, while still impacted by certain legacy low-margin projects. In
YIT expects its Group adjusted operating profit for continuing operations to be higher than in 2021 (2021:
Temporary shutdowns or slower progress on construction sites and delayed completions due to the COVID-19 pandemic or construction material and labour availability could lead to the postponement of revenue and profit from one quarter or year to another. YIT aims to mitigate the impact of increased construction material costs by actively managing its customer relations, contracts, and procurement. Due to increased number of apartments under construction, YIT expects to tie up more 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.
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: 26752930#.
The event is targeted for analysts, portfolio managers and the media. Welcome!
For further information:
YIT Corporation
Vice President, Investor Relations
Distribution: Nasdaq
YIT is the largest Finnish and a significant North European development and construction company. For 110 years, we have been creating better living environments for our customers: functional homes for sustainable living, future-proof public and commercial buildings and infrastructure for smoother flow of people, businesses and society. We employ 5,500 professionals in nine countries:
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