The strong performance of the major profit contributors Telecom & Media and Processing & Network was insufficient to offset the negative impact of the loss in certain other business areas.

Net sales grew by 10% to EUR 404.7 (369.4) million in the third quarter. Organic growth of 12% exceeded total growth as divestments reduced net sales more than acquisitions added to it. Third-quarter operating profit declined to EUR 20.7 (27.7) million. The negative impact of loss-making projects was about EUR 8 million in the third quarter, mainly coming from the Banking & Insurance business area. Additionally, Government, Manufacturing & Retail's operating profit was burdened by project overruns, mainly from one underperforming project.

Lower operating profit was reflected in profit before taxes, which totalled EUR 17.8 (27.4) million and earnings per share amounted to EUR 0.15 (0.26) in the third quarter.

TietoEnator's 'Profit 2007' programme launched at the beginning of February includes plans to divest or restructure loss-making businesses and cut costs. Third-quarter operating profit included restructuring costs of EUR 4.7 million. Operating profit of underlying business (excluding restructuring costs and capital gains and losses) stood at EUR 25.3 (28.4) million. The cost savings have developed according to plan.

On 16 October, TietoEnator published its revised strategy, which aims at restoring the company's profitability and securing a sustainable basis for future growth. TietoEnator will speed up performance improvement programmes with the aim of gaining substantially bigger efficiency improvements than with the current 'Profit 2007' programme. Accelerating quality and productivity improvement is in the key position. The improvement potential and restructuring costs will be quantified later during 2007.

TietoEnator has redefined its global and regional strategies. According to the regional strategy, the aim is to further strengthen the company's leading position as a full-scale IT service provider for Nordic-based core customers in their main markets, including Russia. Globally, the company will be more focused in the future. The product and service portfolios, mainly in the Banking & Insurance and Healthcare & Welfare business areas will be refocused.

TietoEnator's Interim CEO Åke Plyhm comments on the strategy: "Our global business will be even more focused than before with Telecom R&D, Forest and Oil & Gas being the spearheads. All the other industries will mainly have a more regional approach in the Nordic countries and Baltic Rim area."

The positive market situation is expected to continue. TietoEnator expects that its full-year organic growth in 2007 will exceed the earlier forecast of more than 2% and that full-year underlying operating profit will not reach the 2006 level of EUR 124 million.

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