YIT reduces its guidance for the year 2013 regarding operating profitHelsinki, Finland, 2013-06-25 13:00 CEST --
YIT CORPORATION STOCK EXCHANGE RELEASE 25 June 2013 at 2:00 pm
YIT REDUCES ITS GUIDANCE FOR THE YEAR 2013 REGARDING OPERATING PROFIT
YIT Corporation is reducing its guidance regarding operating profit for the year 2013. YIT Corporation now estimates that the revenue and operating profit based on segment reporting for 2013 will remain at the level of year 2012. In its guidance issued in connection with the financial statements bulletin for 2012 (February 5, 2013), YIT estimated that the Group revenue based on segment reporting will remain at the level of 2012 and the operating profit will grow in 2013.
EARLIER GUIDANCE: The Group revenue based on segment reporting for 2013 to remain at
last year's level and operating profit to grow in 2013
NEW GUIDANCE: Revenue and operating profit based on segment reporting will in the year 2013 remain at the level of the year 2012
The development of operating profit has in the Building Systems -operations, which will be transferred to Caverion Corporation in the partial demerger of YIT, has been weaker than expected during the second quarter of the year due to lower than expected capacity utility rate particularly in service and maintenance.
The guidance does not take into account non-recurring expenses related to the demerger.
GUIDANCE FOR THE CONTINUING OPERATIONS OF YIT: Revenue and operating profit to remain at the previous year’s level
YIT repeats the estimate announced on 4 June 2013, according to which the revenue and operating profit of the Group’s continuing operations based on segment reporting for 2013 will remain at the level of 2012, excluding non-recurring items. YIT’s Construction Services business will form the continuing operations.
The guidance is based on the non-IFRS information released on 21 May 2013 and does not include non-recurring costs associated with the demerger.
Increased uncertainty about general macroeconomic development is impacting YIT's business operations and customers.
GUIDANCE FOR THE SECOND HALF OF 2013 FOR CAVERION CORPORATION, A COMPANY TO BE ESTABLISHED IN THE PARTIAL DEMERGER OF YIT
Caverion repeats the estimate announced on 4 June 2013, according to which the Group’s revenue for the second half of 2013 is more than EUR 1.3 billion and EBITDA more than EUR 50 million.
The guidance does not take into account the non-recurring expenses related to the demerger, nor the expenses related to any potential mergers or acquisitions.
The partial demerger of YIT
The Extraordinary General Meeting of YIT has on 17 June 2013 decided on the partial demerger of YIT so that all assets and liabilities related to YIT’s Building Services business are transferred to a new company, named Caverion Corporation, to be formed in the demerger. YIT’s Construction Services business will remain with YIT.
NASDAQ OMX Helsinki Ltd has on 18 June 2013 approved the listing application concerning Caverion’s shares. Caverion’s shares will to be entered into public trading on Monday 1 July 2013.
YIT will no longer after the implementation of the demerger be preparing or updating result guidance for the operations it had prior to the demerger but will do so only for the operations continuing after the demerger. The preparation or updating of the result guidance for the operations to be transferred to Caverion will after the implementation of the demerger be the responsibility of Caverion.
The registration document according to the Finnish Securities Markets Act, which includes information on Caverion and its business and financial position, as well as the securities note and summary (together with the registration document the “Prospectus”) related to the partial demerger disclosed by YIT on 5 February 2013 and the shares to be given as demerger consideration in connection with the partial demerger, have been available as of 5 June 2013 on YIT’s website at www.yit.fi/sijoittajat. The unofficial English translation of the Prospectus has been available as of 5 June 2013 on YIT’s website at www.yitgroup.com/investors. YIT shall supplement the Prospectus as a result of this release.
YIT CORPORATION
Juhani Pitkäkoski
President and CEO
For further information, please contact:
Timo Lehtinen, CFO, YIT Oyj, tel. +358 45 670 0626, timo.lehtinen@yit.fi
Hanna-Maria Heikkinen, Vice President, Investor Relations, YIT Oyj, tel. +358 40 826 2172, hanna-maria.heikkinen@yit.fi
Antti Heinola, future CFO, Caverion, tel +358 40 352 1033, antti.heinola@yit.fi
Sakari Toikkanen, future Senior Vice President, Business Development, Caverion, tel +358 40 532 2174, sakari.toikkanen@yit.fi
Distribution: NASDAQ OMX Helsinki Ltd, principal media, www.yitgroup.com
DISCLAIMER
This announcement is not an offer of securities for sale in any jurisdiction. No securities are being registered under the US Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. No public offering of securities is being made 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.
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