Guidance for 2018
Guidance for 2018 (IFRS) unchanged
Published on October 25, 2018 in connection with January–September Interim Report 2018
On June 27, 2018, YIT’s Board of Directors decided to give numerical guidance for year 2018 concerning the development of both the Group pro forma revenue and adjusted pro forma operating profit. The guidance is unchanged.
The Group pro forma revenue 2018 is estimated to decrease by -2% – -6% from pro forma revenue 2017 (pro forma 2017: EUR 3,862.5 million).
In 2018, the adjusted pro forma operating profit1 is estimated to be in the range of EUR 130–160 million (pro forma 2017: EUR 138.9 million).
The guidance for 2018 is based on, among others, the estimated timing of completions of residential projects under construction and the company’s solid order backlog. At the end of September, 62% of the order backlog was sold. YIT estimates that in 2018, approximately 5,100 apartments in Finland and CEE*, and approximately 3,000 apartments in Russia will be completed for consumers.
During the year, YIT has signed several significant, long-term lease agreements and the estimate regarding the adjusted operating profit1 includes the divestment of several of the business premises in the Helsinki metropolitan area during the fourth quarter. In the fourth quarter, the adjusted pro forma operating profit1 is expected to be clearly better than last year.
* The figure for CEE includes projects sold to YCE housing fund I.
Factors affecting the guidance
The most significant factors with which YIT can answer the market demand are sales and pricing, project and project risk management, product development and the product offering, measures to reduce production costs, cost management and measures affecting the capital efficiency.
Factors outside of YIT’s sphere of influence are mainly related to global economic development, the
functionality of financing markets and the interest rate, the political environment, economic development in areas of operation, changes in demand for apartments and business premises, the availability of resources such as key persons, the functionality of the labour markets, changes in public and private sector investments and changes in legislation, permit and authorisation processes and the duration thereof, as well as the development of foreign exchange rates.
Due to the long-term nature of construction and urban development projects, the changes in demand may be quicker than the company's ability to adapt its offering.