ETTEPLAN Q2 2019 published: Growth continued and profitability exceeded the target level

ETTEPLAN News release August 13, 2019

Etteplan’s Half Year Financial Report for January – June 2019 has been published. You can find the Report and the related presentation materials at https://www.etteplan.com/investors/reports-presentations.

Join our webcast today August 13th at 2.30 EEST at http://bit.ly/2ZF3tYB.  A recording of the webcast can be found through the same link after the live event.

President and CEO Juha Näkki:

“In the second quarter of the year, the market situation remained generally good and our business developed favorably. The share of revenue represented by Managed Services grew, which boosted our profitability beyond our target level. Cash flow was also strong. Our revenue grew for the 23rd consecutive quarter. Growth slowed down slightly though, as the Easter holidays fell entirely in the second quarter.  

The operational performance of the Engineering Solutions service area was very strong. Excellent operational efficiency and successes in projects increased profitability. 

The development of the Software and Embedded Solutions service area was stable. Profitability was slightly affected by a slow start to certain software projects and by changes in the demand situation of a customer in Poland. 

The Technical Documentation Solutions service area also developed favorably. The postponement of software sales to the upcoming quarters and the continued challenges in Germany burdened the service area’s profitability. Nevertheless, we believe the situation of our German business will improve toward the end of the year as a result of the measures we have taken. As strong progress continues in the digitalization of technical documentation, we have also continued to develop our service solutions and we will launch new digital services during the second half of the year. 

In the latter part of the review period, we accelerated our growth again and acquired Devex Mekatronik AB in Sweden in June and EMP Engineering Alliance in Germany in July. With these acquisitions we strengthened our position as an international operator in the engineering services market. Although market uncertainty has increased in the prevailing political situation, which affects demand, we expect our business to continue to develop favorably during the second half of the year. Supported by the acquisitions we have made, we raised our financial guidance and we now expect our revenue and operating profit (EBIT) to grow significantly compared to 2018.” 

Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302