TietoEnator’s preliminary Q1 EBIT margin lower than expected
13 April 2006, According to preliminary information TietoEnator’s first-quarter net sales total EUR 440 million representing a total growth of around 8%. Organic growth is expected to be 3% and growth from acquisitions 5%. TietoEnator guided for 4% acquisitive and at minimum 4% organic growth in connection with TietoEnator’s 2005 full year financial statements on 2 February 2006.
TietoEnator’s first-quarter operating profit (EBIT) amounted to around EUR 30 million corresponding to a margin of close to 7%, while the guided range was 8-11%. The margin excludes the earlier announced capital gain of EUR 4.8 million.
The lower than expected growth and profitability are mostly due to some underperforming projects and higher than expected restructuring expenses. Restructuring expenses totalled over EUR 6 million mostly in Telecom & Media and were higher than the expected EUR 5 million. The expenses related to the underperforming projects in several of TietoEnator’s business areas totalled around EUR 6 million for the Group.
TietoEnator will publish further information including the outlook for the rest of the year in its first quarter interim report on 27 April 2006 at 8.00 am EET/ 7.00 am CET.
TietoEnator is among the leading architects in building a more efficient information society and one of the largest IT services providers in Europe. TietoEnator specializes in consulting, developing and hosting its customers’ business operations in the digital economy. The Group’s services are based on a combination of deep industry-specific expertise and the latest information technology. TietoEnator has over 15 000 experts in more than 25 countries.
- Contact Information
- Päivi Lindqvist
- Senior Vice President, Communications and IR
- TietoEnator Corporation
- Contact via E-mail
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