TietoEnator recorded major improvement in growth, first quarter net sales grew 8%

TietoEnator Corporation Press Release 27 April 2007 at 8.00 am EET
This is a press release without tables. You can download the complete version using this link:
Q1 2007 report

After several years of modest growth, TietoEnator’s net sales in the first quarter of 2007 grew 8% to EUR 442.2 (409.8) million. Organic growth was at the good level of 10%. Profitability also improved. Operating profit stood at EUR 34.5 (29.8) million and earnings per share totalled EUR 0.33 (0.27) for the quarter.

TietoEnator’s net sales grew 8% to EUR 442.2 (409.8) million. Organic growth of 10% was higher than total growth as divestments reduced net sales more than acquisitions added. All of TietoEnator’s business areas grew organically. The markets are active in all customer industries. In most areas prices are either stable or slightly higher than the year before.

Operating profit was EUR 34.5 (29.8) million and operating profit excluding capital gains EUR 32.8 (25.1) million, 31% higher than the year before. Operating margin excluding capital gains reached 7.4% (6.1). There were no material restructuring expenses nor new material project overruns in the first quarter. In the first quarter of 2006 these costs totalled around EUR 13 million. The underlying operating profit was slightly higher than the year before at EUR 33 (32) million.

Profit before taxes stood at EUR 32.4 million compared with EUR 29.6 million in 2006. EPS totalled EUR 0.33 (0.27).

TietoEnator’s Deputy CEO Åke Plyhm comments on the first quarter performance:

“We were able to reach growth numbers we have not seen for a long time, which we are of course happy about. The work we have done to improve our growth is finally paying off. I am especially glad to see the growth we were able to achieve in our telecom business, which is quite an improvement compared to last year. On the profitability side we still need to continue our efforts on several fronts; that work is not yet complete.”

TietoEnator expects its full-year organic growth in 2007 to be higher than the 2006 level of 2%. The operating profit of the underlying business is expected to exceed the level of 2006 (EUR 124 million).