Outlook improved, demand recovering
Net sales of Tekla Group for January-June 2010 totaled 27.32 (24.05) million euros, increasing by 13.6%. The operating result was 3.58 (2.22) million euros, 13.1% (9.2%) of net sales. Earnings per share were 0.15 (0.08) euros.
Net sales for the second quarter amounted to 14.48 (11.86) million euros, increasing by approximately 22%. The operating result for the quarter was 2.10 (0.98) million euros, or 14.5% (8.3%) of net sales.
Ari Kohonen, President and CEO, comments on the reporting period:
- Net sales and operating result for the second quarter increased considerably, which seems to be a continuation of the favorable trend observed in the first quarter. Net sales and especially operating result for the first half of the year increased clearly. Our future outlook is positive after several rather challenging quarters.
- Our main business area, Building & Construction, increased its net sales by nearly 16 percent during the reporting period, and its operating result was twice as high as for the comparison period in 2009. The growth of license sales was approximately 30 percent. The business area's net sales increased considerably in the second quarter, while its operating result tripled. The growth of license sales in the quarter was boosted by additional sales to existing customers.
- Asia and the Nordic countries were the most successful market areas. The United States continues as Tekla's largest individual market, but the gap to the next ones narrowed during the first half of the year. India, Saudi Arabia and Japan are examples of successful markets.
- Net sales of the Infra & Energy business area increased by 8 percent during the reporting period, but its operating result decreased slightly. I&E's full-year outlook continues to be better than last year.
- During the second quarter, the number of personnel increased by 19 persons, amounting to 473 at the end of the reporting period. Compared to the beginning of the year, we had seven more employees at the end of June.
The Board of Directors is increasing its full-year net sales and operating result outlook. Net sales are expected to increase by approximately 15 percent on the year before and the operating result percentage to be 15 to 20 percent. The previous outlook issued in February expected a moderate increase in net sales and operating result in 2010.