Ovako publishes its report for the first quarter 2017

First quarter 2017 (2016)  

• Order intake increased by 35 percent compared to the previous year
• Sales volume was 11 percent higher than in the previous year and
  revenue rose by 16 percent
• EBITDA before restructuring costs improved considerably to EUR 32 (18) million, mainly due to higher volumes and reduced costs from the restructuring program
• Operating profit (EBITA) amounted to EUR 24 (10) million before restructuring costs of EUR 1 (1) million
• Cash flow from operating activities amounted to EUR -3 (2) million, including payment of restructuring costs of EUR 1 (2) million
• Ovako’s restructuring program continues to be ahead of plan. It contributed
  EUR 6 million in the form of lower costs during the quarter 

“The year started strongly, with higher order intake, increased deliveries and improved earnings while our focused safety efforts continued to pay off. We saw clear positive effects both from our enhanced commercial efforts, where we continue to attract new customers and take new business, and from our restructuring program, which is improving our competitiveness through reduced structural costs. In addition, we saw a positive effect from generally stronger demand in the market”, says Marcus Hedblom, President and CEO at Ovako. “There is still uncertainty about the long-term development for the industry. Ovako will continue to monitor its development and are fully prepared to adapt our capacity to changes in demand.”   

Short-term outlook

In the second quarter, we expect to continue to see generally good market conditions, a positive contribution from new business, lower costs deriving from our restructuring program, and a positive effect from base price increases. Our assessment is that sales volumes in the second quarter will be higher than for the corresponding period of the previous year.

Group KPIs

			2017 Q1	2016 Q1	2016 Full year
Sales volumes	Kton		204	184		708
Net revenue	EURm		233	201		781
EBITDA before restructuring cost	EURm		32	18		57
EBITDA	EURm		31	17		50
Adjusted EBITDA margin			13.7 %	8.8 %		7.3 %
EBITDA margin			13.3 %	8.4 %		6.4 %
Operating profit (EBITA) before restructuring cost	EURm		24	10		25
Operating profit (EBITA)	EURm		23	9		18
Adjusted operating margin (EBITA)			10.3 %	4.8 %		3.2 %
Operating margin (EBITA)			9.9 %	4.4 %		2.3 %
EBIT	EURm		21	7		9
Net profit/loss	EURm		11	1		-12
Cash flow from operating activities	EURm		-3	2		35
Full time employees at end of period (FTE)	No.		2,839	2,848		2,773

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