TietoEnator's Q2 net sales grow 11.5%
According to preliminary information TietoEnator expects its second quarter net sales growth to amount to around 11.5%, which is higher than the 7-10% guidance communicated in connection with the company's first quarter interim report.
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Operating margin (EBIT) is expected to be around 9.5%, within the guided range of 7-10%. The margin excludes the capital gains from the divestment of Dotcom and the transactions with Alma Media. Capital gains totalled EUR 15 million.
The better than expected net sales performance has mostly taken place in TietoEnator's business areas Telecom & Media, Banking & Insurance and Production & Logistics. Performance based rewards from Telecom & Media's partnership contracts had a positive impact of around EUR 6 million on the business area's net sales and of around EUR 5 million on its operating profit in the second quarter. The consolidation process costs in Processing & Network had an around EUR 2 million negative impact on its operating profit in the second quarter.
TietoEnator will publish further information including the outlook for the rest of the year in its second quarter interim report on 22 July 2005 at 8.00 am EET.