Tieto's fourth-quarter net sales declined by 10% and amounted to EUR 440.6 (492.0) million. Outsourcing activity was strong, but net sales from new projects remained at a low level. Net sales dropped in most customer industries. The public and retail sectors performed well and their net sales continued to grow in the fourth quarter.
Fourth-quarter operating profit amounted to EUR 33.7 (23.6) million. Operating profit included a net amount of EUR 4.8 million (negative) in one-off items related to streamlining actions. Operating profit excluding one-off items amounted to EUR 38.5 (42.4) million, representing a margin of 8.7% (8.6). The trend in the margin in all country segments remained positive compared with the first three quarters of 2009. Profit before taxes totalled EUR 32.2 (6.6) million and earnings per share amounted to EUR 0.36 (0.02) in the fourth quarter.
The company has restructured its operations during the year and increased its resources in offshore locations substantially in 2009. From the beginning of 2009, the number of employees in the global delivery centres has increased by 20% and amounted to about 5 100 (4 280), or 30% (25) of the year-end headcount. Global operations have grown fast especially in India and China. As a result of efficient implementation of streamlining actions, the company achieved its EUR 70 million savings target, exclusive of currency effects.
The outsourcing market and the demand for new service models are expected to remain robust in 2010. The market for larger, new IT projects is expected to pick up, but only during the second half of 2010. In Finland, the utilities, healthcare and welfare sectors are anticipated to drive growth, whereas in Sweden, new outsourcing-related opportunities have opened up especially in the finance and public sectors. In 2010,Tieto expects its net sales to develop in line with the IT services market relevant to Tieto and its operating profit to be higher than in 2009.
News within the industry of pulp and paper, May, 09 2025
