Etteplan releases a profit warning and lowers its guidance for 2024
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
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www.etteplan.com