Ukraine crisis hits YIT profits
By Sarah Ann McCay29 April 2014
Finnish contractor YIT has felt the impact of political instability in Europe, reporting a decline in revenue of 11% for the first quarter of 2014 to €403.1 million, compared to €452 million in Q1, 2013.
In its first quarterly report following its demerger in 2013, YIT also saw its operating profit slip 25% to €26.9 million, from 2013’s €35.9 million.
However, the contractor’s backlog held steady at €2.7 billion, comparable with figures at the end of 2013.
Kari Kauniskangas, president and CEO said, “The market situation remained challenging in the first quarter, and the Ukrainian crisis increased the uncertainty in our operating environment.
"In Russia, our housing sales were boosted in February to March by consumers looking to shift their assets to fixed property. Prolongation and potential escalation of the crisis would probably have a negative effect on our business operations.
“With respect to the Housing segment, we can be satisfied with our strong growth in the number of apartments sold in the first quarter in Russia, the Baltic countries and Central Eastern Europe. The result we achieved in Finland was fair considering the prevailing market environment.”
For 2014, Kauniskangas said that YIT was focussed on cost-efficiency and improving cash flow as well as capital efficiency.