Caverion Corporation lowers its guidance announced in January 2014 regarding EBITDA for 2014. Caverion now estimates that the Group’s EBITDA for 2014 excluding non-recurring items will be below the previous guidance and will remain at the previous year's level (EBITDA excluding non-recurring items in 2013: EUR 81.7 million). The company repeats its previous guidance regarding revenue.
Turnaround of the business after the demerger has taken a longer time than expected and is still partly ongoing. Projects in Norway and Denmark have continued to dilute the profitability in April−June 2014. Furthermore, Caverion has reviewed the project business more closely in all the divisions and revised the cost estimates and provisions relating to some low-performing projects in the overall project portfolio.
There are no changes to the previously communicated market outlook. The profitability of the Norwegian project business is expected to improve during the second half of 2014. The target to reach negative working capital by the end of 2016 is progressing according to plan.
Caverion estimates that the Group’s revenue with comparable exchange rates and EBITDA excluding non-recurring items for 2014 will remain at the previous year's level.
In 2014 the targeted EBITDA level will be reached by improving the operational efficiency, growing the service and maintenance business as well as increasing the project business in Germany. The potential changes in general macroeconomic environment nonetheless may have an effect on Caverion’s business and customers.
Previous guidance announced on January 28, 2014:
Caverion estimates that the Group’s revenue for 2014 with comparable exchange rates will remain at the previous year's level and EBITDA for 2014 excluding non-recurring items will grow clearly to EUR 90–110 million.
In 2014 the EBITDA increase will be executed by improving the operational efficiency, growing the service and maintenance business as well as increasing the project business in Germany. The potential changes in general macroeconomic environment nonetheless may have an effect on Caverion’s business and customers.
Additional information will be provided in the Interim Report for January−June 2014, which will be published on July 22, 2014. A briefing for the media, analysts and investors will be arranged in conjunction with the interim report.
For additional information, please contact:
Antti Heinola, Chief Financial Officer, Caverion Corporation, tel. +358 40 352 1033, firstname.lastname@example.org
Milena Hæggström, Head of Investor Relations, tel. +358 40 5581 328, email@example.com
Distribution: NASDAQ OMX, principal media, www.caverion.com
Caverion designs, builds, operates and maintains user-friendly and energy-efficient technical solutions for buildings and industries. Our services are used in offices, retail properties, housing, public premises, industrial plants and infrastructure, among other places. We aim to be a leading European provider of advanced and sustainable life cycle solutions. Our strengths include technological competence and comprehensive services, covering all technical disciplines throughout the life cycle of the property and industrial plant. Caverion was established through the demerger of Building Services and Industrial Services businesses from YIT Group in June 2013. Our revenue for 2013 amounted to approximately EUR 2.5 billion. Caverion has nearly 18,000 employees in 13 countries in Northern and Central Europe. Caverion’s shares are listed on NASDAQ OMX Helsinki. www.caverion.com