YIT to issue a guidance, strategy and financial targets for continuing operations
Helsinki, Finland, 2013-06-04 08:02 CEST (GLOBE NEWSWIRE) --
YIT Corporation STOCK EXCHANGE RELEASE June 4, 2013 at 9:02 a.m.
YIT TO ISSUE A GUIDANCE, STRATEGY AND FINANCIAL TARGETS FOR CONTINUING OPERATIONS
In its meeting held on June 3, 2013, YIT Corporation’s Board of Directors ratified the 2013 guidance, strategy and financial targets for continuing operations for 2014–2016. YIT’s Construction Services business will form the continuing operations.
Guidance for continuing operations: revenue and operating profit to remain at the previous year’s level
YIT estimates the revenue and operating profit of the Group’s continuing operations based on segment reporting for 2013 to remain at the level of 2012, excluding non-recurring items.
The guidance is based on the non-IFRS information released on May 21, 2013, and does not include non-recurring costs associated with the planned demerger.
Increased uncertainty about general macroeconomic development is impacting YIT's business operations and customers.
Well-managed, profitable growth as a strategy
YIT’s strategy is well-managed, profitable growth, which is targeted focusing on its own development projects, in all business operations (housing, business premises, infra) and within all of its current geographic regions (Finland, Russia, Baltic countries and Central Eastern Europe). In particular, growth is being pursued in emerging markets and residential construction. The focus is being placed on improved resistance to economic cycles and widening financial operating space, as well as accelerated reform.
“The demerger focuses our operations increasingly on more selected business areas and allows the company to improve its ability to develop more quickly,” says Kari Kauniskangas, future President and CEO of YIT. “We will increase the share of our own-development production within all of our business areas. Our aim is to improve the resistance of our own-development production to economic cycles: we will release capital, use our capital more efficiently and utilise new financing sources alongside the current ones.”
In the future, some two thirds of the Group’s revenue will come from consumer sales, and YIT’s objective is to strengthen the YIT brand. “We will improve our quality and customer service further, and continuously introduce innovative new housing solutions to consumers,” Kari Kauniskangas says in emphasis.
Financial targets for continuing operations
YIT has ratified its financial targets for continuing operations:
Annual revenue growth above 10 per cent on average
Return on investment of 20 per cent
Operating cash flow after investments sufficient for paying dividends and reducing debt
Equity ratio of 40 per cent (previously 35 per cent)
Dividend payout of 40 to 60 per cent of net profit for the period
The target levels are based on figures reported by the company on the basis of the percentage of completion and in accordance with the current emphasis. When determining the target levels, the assumption was made that economic growth in YIT’s market areas will continue.
YIT’s strategy and financial targets will be presented in more detail at the YIT Capital Market Day to be held in Moscow on September 19, 2013. More information and registration instructions for the Capital Market Day are available on YIT’s investor page at http://www.yitgroup.com/investors.
Decisions of the Board of Directors have been made with the assumption that YIT will be demerged as planned so that all assets and liabilities associated with the operations of YIT Building Systems will be transferred to the company named Caverion Corporation, to be established during the demerger. YIT’s Construction Services business will form the continuing operations.
The demerger will become effective once YIT's Extraordinary General Meeting on June 17, 2013, has approved the demerger and its implementation has been recorded in the Finnish Trade Register. The planned registration date is June 30, 2013, after which the shares of Caverion will be available for public trading on NASDAQ OMX Helsinki Ltd.
For further information, please contact:
Timo Lehtinen, Chief Financial Officer, YIT Corporation, tel. +358 45 670 0626, firstname.lastname@example.org
Hanna-Maria Heikkinen, Vice President, Investor Relations, YIT Corporation, tel. +358 20 433 2635, email@example.com
Vice President, Investor Relations
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT is a leading European service company in building systems, construction services and services for industry. Our 25,000 professionals serve customers in 14 countries in the Nordic and Baltic countries, Russia and Central Europe. For over one hundred years we have grown together with our customers and developed our services in line with the changes taking place in different societies. We intend to continue on that track. Our vision is to lead the way in creating and maintaining good living environments. In 2012, YIT’s revenue was approximately EUR 4.7 billion. YIT’s shares are listed on the NASDAQ OMX Helsinki. www.yitgroup.com
The information contained herein shall not constitute an offer to sell or the solicitation
of an offer to buy the securities referred to herein in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration, exemption from registration or
qualification under the securities laws of any such jurisdiction.
This document is not an offer for sale of securities in the United States. Securities may
not be offered or sold in the United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. YIT Corporation and
Caverion Oyj have not registered, and do not intend to register, any offering of the
Caverion shares in the United States. There will be no public offering of the Caverion
shares in the United States.
This release includes forward-looking statements. These forward-looking statements include,
but are not limited to, all statements other than statements of historical facts contained
in this communication, including, without limitation, those regarding the demerger plan and
its execution. By their nature, forward looking statements involve known and unknown risks,
uncertainties and other factors because they relate to events and depend on circumstances
that may or may not occur in the future. Such statements are based on numerous assumptions
and may differ materially from (and be significantly more negative than) those made in, or
suggested by, the forward-looking statements contained in this release.