The Jaakko Pöyry Group's net sales for the period under review were EUR 234.3 (206.3 in the same period 2003) million. Profit before extraordinary items was EUR 12.0 (21.6) million. The profit for 2003 included a gain of EUR 11.0 million from the sale of Jaakko Pöyry Group Oyj's headquarter property.
The Group's consolidated balance sheet is healthy. The equity ratio was 46.2 (50.7) per cent and the net debt/equity ratio (gearing)
-29.0 (-20.5) per cent.
The Jaakko Pöyry Group's earnings per share were EUR 0.50 (1.03) and the return on investment 18.7 (34.5) per cent.
The Group's order stock was EUR 391.0 million. It increased by EUR 55.3 million during the period under review.
Consolidated net sales will increase clearly during 2004. Profit before extraordinary items is estimated to improve in 2004, if the capital gain of EUR 11 million from the sale of the head office property in 2003 is disregarded in the comparison.
Prospects
In late 2003 and early 2004 the world economy has shown signs of recovery, especially in North America. Continued economic growth presumes that no new major political or other uncertainties emerge.
The Jaakko Pöyry Group's market position has strengthened in recent years. The Group's order stock increased by EUR 55.3 million during the review period, amounting to EUR 391.0 million. The Group's balance sheet position and liquidity are also good.
Investment activity in the forest industry has remained low. Demand for forest industry consulting services has also been slack. If economic growth picks up during 2004 according to expectations, activities to prepare and implement investments can be expected to increase. Taking into account the market situation, the Forest Industry business group's earnings development during the review period has been good and the order stock is stable. The business group's operating profit will increase slightly during 2004 compared with 2003.
The economic recovery in East Asia, China and to some degree in Europe, together with the expanding EU, creates good opportunities for growth in demand for energy-related services. This applies in particular to renewable energy, plant refurbishments and management consulting services. The business group's earnings development has been good and its order stock has grown. The business group will clearly improve its operating profit for 2004 compared with 2003.
Demand prospects for the Infrastructure & Environment business group are variable. Demand for traffic system expertise will remain good in Latin America and Asia. In Western Europe, especially in Germany, investments in traffic systems are declining, which has been reflected in the business group's activities. A weakening market situation may lead to further streamlining of operations. In the water and environment sector, demand is expected to remain unchanged. Demand for building services is still focused on renovation building. The business group's order stock is good. The operating profit will decline in 2004 compared with 2003.
The general market situation and economic growth are recovering. Economic growth is expected to strengthen during 2004. The Jaakko Pöyry Group's order stock, balance sheet structure and market position are good. Consolidated net sales will increase clearly during 2004. Profit before extraordinary items is estimated to improve in 2004, if the capital gain of EUR 11 million from the sale of the head office property in 2003 is disregarded in the comparison.
Vantaa, July 28, 2004
JAAKKO PÖYRY GROUP OYJ
Board of Directors
JAAKKO PÖYRY GROUP OYJ
Erkki Pehu-Lehtonen Teuvo Salminen
President and CEO Deputy to President and CEO
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