Tikkurila's Interim Report for January-March 2014 - Strong start to the year

Tikkurila Oyj
Stock Exchange Release
May 8, 2014 at 9:00 a.m. (CET+1)
 
Tikkurila's Interim Report for January-March 2014
- Strong start to the year

January-March 2014 highlights

Revenue for the first quarter increased by 2.2 percent to EUR 141.5 million (1-3/2013: EUR 138.4 million).Operating profit (EBIT) excluding non-recurring items was EUR 13.0 (10.1) million, i.e. 9.2 (7.3) percent of revenue.Operating profit (EBIT) was EUR 13.8 (10.2) million, i.e. 9.8 (7.4) percent of revenue. EPS was EUR 0.17 (0.15).

Revenue and EBIT estimates for 2014 intact

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level.  Key figures(EUR million)1-3/20141-3/2013Change %1-12/2013Income statement Revenue 141.5 138.4 2.2% 653.0 Operating profit (EBIT), excluding non-recurring items 13.0 10.1 28.5% 72.6 Operating profit (EBIT) margin,
excluding non-recurring items, % 9.2% 7.3% 11.1% Operating profit (EBIT) 13.8 10.2 35.0% 71.5 Operating profit (EBIT) margin, % 9.8% 7.4% 10.9% Profit before taxes 11.8 10.5 12.7% 67.0 Net profit 7.3 6.6 11.2% 50.1 Other key indicators EPS, EUR 0.17 0.15 11.2% 1.14 ROCE, %, rolling 25.4% 22.6% 23.5% Cash flow after capital expenditure -4.8 -13.7 64.8% 66.9 Net interest-bearing debt at period-end 53.8 94.0 -42.8% 48.6 Gearing, % 30.6% 45.5% 23.4% Equity ratio, % 39.1% 43.4% 50.1% Personnel at period-end 3,186 3,231 -1.4% 3,133

 

Comments by Erkki Järvinen, President and CEO:

"Our year got off to a good start, we achieved a strong result in the challenging market situation. Our profitability was improved by not only the increased revenue but also by the determined streamlining of our operations, improvement of productivity, and strict cost management.

Our euro-denominated revenue grew slightly from the comparison period despite the negative exchange rates development of the key currencies. The good development was based on higher sales volumes, favorable development of the sales mix, and the sales price increases implemented in Russia. Moreover, the early arrival of spring had a positive effect on demand.

The crisis in Ukraine increased uncertainty associated with economic development, and this resulted in considerable cuts in Russian growth forecasts. Despite the crisis, our sales volumes grew from the comparison period in Russia, as well. The majority of our paints sold in Russia are manufactured locally, and a considerable portion of raw materials is also procured from local suppliers. The ruble risks are especially associated with products exported from Finland to Russia and raw materials procured from the West.

We will continue to further develop our operations, and simultaneously we will increase investments in sales and marketing especially in Russia. Slight positive signs could be seen in the macroeconomic development in Sweden, Poland, and the Baltic countries. On the other hand, the exchange rates relevant to Tikkurila are generally expected to remain at a weak level, which will have a negative effect particularly on our revenue development also during the remainder of the year."

Outlook for 2014

Tikkurila reiterates its guidance for 2014.

The economic situation in Europe is expected to improve moderately in 2014. Considerable regional differences are forecasted between Tikkurila's different markets in private consumption and construction volumes in 2014, but overall growth is estimated to remain low. No considerable change is expected in the demand for Tikkurila's products compared to last year. Cost Inflation is expected to continue, and investments in sales, marketing and innovation activities are forecasted to increase the fixed cost level. Raw material prices are forecasted to remain stable.

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level.

Disclosing procedures of financial reviews

Tikkurila Oyj follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and discloses relevant information (i.e. information likely to have a material effect on the value of Tikkurila's share price) related to its Interim Report with this Stock Exchange Release. Tikkurila's Interim Report for January-March 2014 is attached to this release and is also available on company's website at www.tikkurilagroup.com.

Press conference and webcast

Tikkurila will hold a press conference regarding the Interim Report for January-March 2014 for the media and analysts today on May 8, 2014, at 12:00 p.m. (CET+1) in the Akseli Gallén-Kallela Cabinet at the Hotel Kämp, (address Pohjoisesplanadi 29, 00100 Helsinki). The conference will be held in Finnish language. Attendees will be served lunch at the conference premises starting at 11:30 (CET+1). The result will be presented by Erkki Järvinen, President and CEO, and Jukka Havia, CFO.

A live webcast, conducted in English, will be organized on May 8, 2014 at 3:00 p.m. The live webcast will be available at www.tikkurilagroup.com. The participants can also join a telephone conference that will be arranged in conjunction with the live webcast. The telephone conference details are set out below:

+358 9 2313 9201 (Finnish callers)
+44 20 7162 0077 (UK callers)
+1 334 323 6201 (US callers)
Participant code: 943094
 
An on-demand version of the webcast will be available at www.tikkurilagroup.com/investors later during the same day.

The Interim Report and presentation materials will be available before the event at www.tikkurilagroup.com/investors.

Tikkurila Oyj
Erkki Järvinen, President and CEO

For further information, please contact:

Erkki Järvinen, President and CEO
Mobile +358 400 455 913, erkki.jarvinen@tikkurila.com

Jukka Havia, CFO
Mobile +358 50 355 3757, jukka.havia@tikkurila.com

Minna Avellan, Manager, Investor Relations
Mobile +358 40 533 7932, minna.avellan@tikkurila.com

For 150 years already, Tikkurila has provided consumers and professionals with user-friendly and sustainable solutions for surface protection and decoration. Tikkurila wants to be the leading paint company in the Nordic area as well as in Russia and other selected Eastern European countries. - Tikkurila inspires you to color your life.

www.tikkurilagroup.com

Tikkurila Interim Report Q1/2014


This announcement is distributed by Nasdaq OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Tikkurila Oyj via Globenewswire
HUG#1783523