Tieto

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Tieto Q1 net profit plummets

Source: Tieto

Highlights - January-March

Net sales totalled EUR 438.0 (468.3) million, down 6%. Main part of the sales decline is attributable to exchange rates. In local currencies, net sales declined by 2%.
Operating profit amounted to EUR 4.9 (24.6) million.
Operating profit, excluding one-off costs related to the Performance Improvement Programme, amounted to EUR 21.3 (37.7) million, representing an operating margin of 4.9% (8.1).
Profit after taxes was EUR 1.0 (16.3) million.
Net cash flow from operations amounted to EUR 42.0 (64.6) million.
Good flow of new outsourcing agreements including Fonecta, Ruukki and Nokia Siemens Networks.
Tieto expects the IT services market to decline in 2009 and tough market conditions to continue. Therefore Tieto expects its full-year net sales and operating profit to decline from last year. In the Nordic countries, the company sees good prospects in outsourcing.

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