Revenue gains for YIT
By Sarah McCay27 July 2014
Finnish contractor YIT posted improved figures for the second quarter of 2014, after a slow start to the year which was largely as a result of the political crisis in Ukraine.
The firm reported a 5% increase in revenue, up to €451.4 million for the second quarter of 2014 compared with €430.9 million for the same period in 2013. Operating profit dropped back slightly, from €34.7 million for the second quarter of this year, compared with €38.3 million for the first quarter of 2013.
However, strong gains in backlog have helped bolster YIT, as it posted an 8% increase in backlog to €2.9 billion.
Revenue for the first half of 2014 decreased 3% to €845.5 million, from €882.9 million for the first half of 2013. Meanwhile, operating profit for the first half dropped €12.7 million, from €74.2 million for the first half of 2013 down to €61.5 million for the first half of this year.
Kari Kauniskangas, president and CEO, said, “I am satisfied with the result we achieved in the second quarter, taking into account the continued challenging market situation in Finland and the impact of capital release on profitability.
“In the housing segment, revenue grew in Finland, the Baltic countries and Central Eastern Europe, and also in Russia at comparable exchange rates, although the growth slowed down in Russia after the exceptionally strong beginning of the year,” he said.
“The result of the business premises and infrastructure segment improved, as expected, from the weak level seen in the first quarter after infrastructure projects regained full speed.”
According to Kauniskangas, YIT targets a positive cash flow for its full-year figures, and will continue to focus on cost-efficiency, cash flow and capital efficiency to achieve this.