YIT files modest third quarter results

Finnish contractor YIT saw results hold steady for the third quarter ended September 30, 2013, despite weakened residential sales in its domestic market.

The firm saw revenue drop 3% to €455 million from €470 million for the third quarter 2012. Construction Services Finland reported a drop of 7% while International Construction Services increased 7%.

Operating profit decreased 29% to €37.4 million, down from €52.5 million in 2012.

Overall, YIT’s backlog increased 2% to € 2.8 billion, up from €2.7 billion at the same point in 2012.

Year-to-date figures for the nine months to September 30, 2013 saw revenue down 5% to €1.3 billion from €1.4 billion at September 30, 2012.

However, revenue for YIT’s international construction services division increased by 9%.

Total operating profit for the nine months declined by 16% to €111.6 million, down from €133.1 million.

Kari Kauniskangas, president and CEO, said a weakened sales mix in residential sales and the low revenue from the business premises division impaired the profitability of its construction services Finland business.

“With continued macroeconomic uncertainty in the third quarter, our focus is currently particularly on sales as well as improving cash flow, cost- and capital efficiency.

"In the short term, we aim to reduce the level of completed unsold apartments and complete the sales of business premises projects currently under construction,” he added.