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Etteplan Q2: Profitability improved

Stock exchange release – Published: 13.08.2014 14:00:00



Review period April-June 2014

– The Group’s revenue decreased by 1.5% and was EUR 33.7 million
  (4-6/2013: EUR 34.2 million).
– EBITDA improved by 10.9% and was EUR 2.9 million (EUR 2.6 million).
– Operating profit (EBIT) improved by 16.3% and was EUR 2.3 million (EUR 2.0 million).
– The profit for the review period was EUR 1.8 million (EUR 1.6 million).
– Operating cash flow improved and was EUR 3.1 million (EUR 1.0 million).
– Earnings per share were EUR 0.09 (EUR 0.08).
– The Group had 1, 843 employees at the end of the period (1, 742).
– Etteplan keeps its financial guidance unchanged and adjusts the estimate of
  its market outlook.

Review period January-June 2014

– The Group’s revenue decreased by 2.4% and was EUR 67.0 million 
  (1-6/2013: EUR 68.7 million).
– EBITDA declined by 7.1% and was EUR 4.7 million (EUR 5.1 million).
– Operating profit (EBIT) decreased by 7.6% and was EUR 3.4 million (EUR 3.7 million).
– The profit for the review period was EUR 2.6 million (EUR 2.7 million).
– Operating cash flow improved and was EUR 1.4 million (EUR -0.9 million).
– Earnings per share were EUR 0.13 (0.13).

Outlook 2014

Market outlook

The most important factor in the development of Etteplan’s business is the development of the machinery and metal industry. Despite increased new orders from the machinery and metal industry, the market has become more uncertain and business less predictable.

Financial guidance

We expect the revenue and operating profit for the year 2014 to grow compared to 2013. 

Previous estimate of outlook

Market outlook

The most important factor in the development of Etteplan’s business operations is the development of business operations in the machinery and metal industry. At the beginning of 2014, the revenues and order books of the machinery and metal industry were at a lower level than in the corresponding period in 2013. However, new orders increased on average. The demand for engineering design services showed signs of recovery at the end of the review period, but the full-year development remains uncertain.    

Financial guidance

We expect the revenue and operating profit for the year 2014 to grow compared to 2013.

Key figures

Juha Näkki, President and CEO of Etteplan Oyj comments on the interim report:

“Due to our strong market position and the recovery in demand at the end of the first quarter we were able to turn our business back to growth in the end of the review period. Our operating profit improved compared to the second quarter of 2013 and nearly doubled compared to the first quarter of 2014. Our cash flow improved significantly. Our revenue ceased to decrease and was slightly better than in the comparison period at comparable exchange rates. The number of temporary layoffs continued to decrease in Finland in the second quarter. Sales to key customers developed more favorably than other business operations.

In Europe, the demand for engineering design services and technical documentation improved in the review period, particularly in the projects of forest industry equipment manufacturers, while also showing signs of improvement in other sectors. Overall demand improved slightly in Finland and the Netherlands. In Sweden, demand recovered faster than in Finland and the Netherlands, but the competitive situation remained tight.    

In China, the engineering design service market continued to develop favorably. During the review period, we managed to increase the number of working hours invoiced in the Chinese market by nearly 170 per cent, and our number of employees in China exceeded 200. Our acquisition of Elomatic’s engineering business in China and the outsourcing of MacGregor’s engineering design operations had a positive effect on our operations in China. Offshoring services outside China continued to grow as well. I am very pleased with the development in China in the first half of 2014, and we will continue to carry out measures to maintain growth.

The implementation of our business strategy is progressing as planned. High value-added Managed Services constituted more than one-third of our revenue. Our service products, offering cost savings to customers, are ideal for the prevailing market situation, and we received significant orders during the review period. In technical documentation, the earlier outsourcing carried out by Fortum Värme was followed by the outsourcing of technical documentation by Fortum Hydro to Etteplan in Sweden. Interest in our technical documentation and outsourcing solutions has clearly increased, and we are negotiating outsourcing cases with several customers.   

During the review period, Etteplan adjusted its growth target upward to 15 per cent. The target includes both organic growth and acquisitions. We are back on the growth track, and the market situation is favorable for acquisitions. With determined work, I believe we will reach our new growth target in 2015.

Despite slow growth and the uncertainty in Europe created by the situation in Russia, our financial guidance for 2014 remains unchanged.”

Disclosure procedure

Etteplan follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Etteplan’s January-June 2014 interim report. The complete interim report is attached to this stock exchange release in pdf format and is also available on Etteplan’s website at Investors are advised to review the complete interim report with tables.

Conference call and live webcast today, August 13, 2014

Etteplan’s President and CEO Juha Näkki will present Company’s results for January-June 2014 in a conference call and a live webcast for analysts and investors, held in English language, on August 13, 2014 starting at 3.30 p.m. Finnish time (EET).

To participate in the conference call please dial 5-10 minutes prior to the start of the conference to +358 9 2319 5437, event password is Etteplan2014. Questions can be asked in English after President and CEO’s presentation only through conference call connection.

Juha Näkki’s presentation can be followed as a live webcast through a link at Etteplan’s homepage at The live webcast starts at 3.30 p.m. Finnish time (EET).

A recording of the webcast will be later available at the same address.

Vantaa, August 13, 2014

Etteplan Oyj

Board of Directors

Additional information:
Juha Näkki, President and CEO, tel. +358 400 606 372

The information presented herein has not been audited.

Releases and other corporate information are available on Etteplan’s Web site at

Major media

Etteplan provides engineering planning services and technical product information solutions to the world’s leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers’ products and engineering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can be seen in numerous industrial solutions and everyday products.

In 2013, Etteplan had a turnover of EUR 128.6 million. The company has more than 1, 800 professionals in Finland, Sweden, the Netherlands and China. Etteplan’s shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.