Profitability improvement continued in the fourth quarter
(Thomson Reuters ONE) - Tieto CorporationPress release 10 February 2010 at 08.05 am EETThis is a press release without tables. You can download the complete versionusing this link (pdf):http://hugin.info/3114/R/1382208/341389.pdfTieto's fourth-quarter net sales declined by 10% and amounted to EUR 440.6(492.0) million. Outsourcing activity was strong, but net sales from newprojects remained at a low level. Net sales dropped in most customer industries.The public and retail sectors performed well and their net sales continued togrow in the fourth quarter.Fourth-quarter operating profit amounted to EUR 33.7 (23.6) million. Operatingprofit included a net amount of EUR 4.8 million (negative) in one-off itemsrelated to streamlining actions. Operating profit excluding one-off itemsamounted to EUR 38.5 (42.4) million, representing a margin of 8.7% (8.6). Thetrend in the margin in all country segments remained positive compared with thefirst three quarters of 2009. Profit before taxes totalled EUR 32.2 (6.6)million and earnings per share amounted to EUR 0.36 (0.02) in the fourthquarter.The company has restructured its operations during the year and increased itsresources in offshore locations substantially in 2009. From the beginning of2009, the number of employees in the global delivery centres has increased by20% and amounted to about 5 100 (4 280), or 30% (25) of the year-end headcount.Global operations have grown fast especially in India and China. As a result ofefficient implementation of streamlining actions, the company achieved its EUR70 million savings target, exclusive of currency effects.The outsourcing market and the demand for new service models are expected toremain robust in 2010. The market for larger, new IT projects is expected topick up, but only during the second half of 2010. In Finland, the utilities,healthcare and welfare sectors are anticipated to drive growth, whereas inSweden, new outsourcing-related opportunities have opened up especially in thefinance and public sectors. In 2010,Tieto expects its net sales to develop inline with the IT services market relevant to Tieto and its operating profit tobe higher than in 2009.President and CEO Hannu Syrj?:"The final quarter of 2009 was two-folded for Tieto - we improved ourprofitability from the previous three quarters, but at the same time our netsales continued to decline as a result of lower volumes and price pressure. Weachieved an EBIT margin of 7.6% in the fourth quarter due to disciplinedimplementation of planned streamlining measures. Going forward, profitabilityimprovement will continue to be high on our agenda, but we are starting to focusmore on growth.On the whole, year 2009 was exceptionally challenging. We implemented a newoperating model and business structure and at the same time we tackled theimpacts of lower demand for our services. Despite the tough market environment,we reached many of the goals set for 2009. In addition to cutting costs andimproving the efficiency of our onshore operations, we increased our offshoringaccording to our plans. By the end of 2009, we had achieved the EUR 70 millionsavings target and our offshoring rate, i.e. share of personnel in globaldelivery centres, was at 30%.As a result of the work done in the past two years,Tieto is now a much stronger company and well positioned for the future."For further information, please contact:Hannu Syrj?, President and CEO, tel.+358 2072 68729, hannu.syrjala(at)tieto.com
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 10.02.2010 - 01:06 Uhr
Sprache: Deutsch
News-ID 1010164
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
Helsinki
Phone:
Kategorie:
Business News
Anmerkungen:
Diese Pressemitteilung wurde bisher 76 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Profitability improvement continued in the fourth quarter
"
steht unter der journalistisch-redaktionellen Verantwortung von
Tieto Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
