Etteplan Oyj, Stock Exchange Release/Insider information, October 15, 2024 at
8.00 a.m. EEST
Etteplan releases a profit warning and lowers its guidance for 2024
The revenue is expected to be EUR 355-370 million and the operating profit
(EBIT) about EUR 18-22 million
In its profit warning published on August 28, 2024, Etteplan estimated its
revenue for 2024 to be EUR 360-375 (2023: 360.0) million and the operating
profit (EBIT) to be EUR 24-27 (2023: 25.5) million.
Etteplan is lowering its previous estimate of revenue and operating profit
(EBIT) for 2024 due to the market demand and the restructuring of our business
and organization. According to the new estimate, the revenue is estimated to be
EUR 355-370 million and operating profit (EBIT) to be EUR 18-22 million.
The negative development of Etteplan's outlook is affected by the continued
weakening of the demand situation in Europe and particulary in Germany.
Customers' decision-making on new investments is still cautious, and new
investments start very slowly. As customers' order backlogs have decreased, the
demand for engineering solutions related to project deliveries has also
continued to decrease.
"Etteplan's business is suffering from the current investment slump. The
manufacturing industry's investments in new products and production are
currently very low, and decision-making remains slow, and projects are not
starting as we had expected. We have already implemented adaptation measures
across all our service areas to improve operational efficiency in Finland and
elsewhere in Europe during the third quarter. In addition, the result of the
third quarter is negatively affected by the correction of an unfortunate
accounting error in Sweden. If necessary, we are preparing to continue
restructuring and adaptation measures throughout the rest of the year. The
measures will cause significant costs, but we want to ensure operational
efficiency in the prevailing difficult market situation while also improving our
ability to implement our new strategy that is being prepared,” says President
and CEO Juha Näkki, Etteplan Oyj.
Due to the difficult market situation, adaptation measures have been implemented
in almost all European operating countries. These measures are also a
preparation for the new strategic period of 2025-2027. The goal of these
measures is to strengthen the ability to implement the new strategy. The
strategy for 2025-2027 will be published in December 2024.
The adaptation measures will cause significant non-recurring costs in 2024. In
Germany, due to the further weakened demand situation, Etteplan has decided to
terminate its Building Technology business, which will cause costs and project
write-downs. In addition, the correction of an accounting error in the 2024
salary entries in Sweden will have a negative impact on the third quarter
result.
Etteplan's interim report for the third quarter will be released on Thursday,
October 31, 2024.
Espoo, October 15, 2024
Board of Directors
Additional information
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com
Etteplan in brief
Etteplan is a growing technology service company with the purpose of bringing
people and technologies together to change things for the better. Together with
our customers, we are building a world where every system, process, and product
can be made smarter, more efficient, and more sustainable. Our customers include
world's leading companies in the manufacturing industry.
In 2023, we had a turnover of EUR 360.0 million and around 4,000 professionals
in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China.
Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker.
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