Questions and answers related to Interim Review January-March 2016
Apr 27, 2016
Why did the profitability (EBITA %) increase y-o-y? (Compared to Q1 2015)
Profitability improved due to the higher level of net sales in Paper and Services business lines, improved gross profit, and the acquisition of Automation
Why did the profitability (EBITA %) decrease q-o-q? (Compared to Q4 2015)
Lower business volumes especially in stable business
In Automation, Q1 is typically the weakest quarter
Was Automation loss-making in Q1/2016, like in Q1/2015?
No, we are satisfied with Automation’s development in Q1/2016
Why was the cash flow so weak in Q1/2016, only EUR 3 million?
Payment schedules of large capital projects have significant impact on net working capital development: large payments to suppliers in Q1/2016.
Why did orders received in Services increase by 7%?
Orders received increased in China and South America, and remained stable compared to the comparison period in EMEA, North America and Asia-Pacific.
Orders received increased in Mill Improvements, Performance Parts and Fabrics, remained stable compared to the comparison period in Rolls, and decreased in Energy and Environmental.
Key issues to grow services are related to increase long term agreements and being close to customers
Which are the most active areas from geographical point of view in Services?
Orders received increased in China and South America, and remained stable compared to the comparison period in EMEA, North America and Asia-Pacific.
SG&As increased to EUR 130 million (EUR 104 million Q1/2015), how much was related to Automation?