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Outlook

Tikkurila's disclosed estimates on the outlook for 2018

Financial Statement Release on February 13, 2018: Outlook for 2018

The market outlook for the current year is relatively good, although uncertainty has increased in the Swedish housing market in recent months. Economic growth is anticipated to continue in Tikkurila’s key markets and consumer confidence is high. The identified problems with the deployment of the ERP system have mostly been resolved, and inventory levels have been significantly raised in order to ensure deliveries.

The prices of raw materials and packaging materials are anticipated to continue rising throughout the year. Some challenges with availability may also still occur. In order to compensate for increased costs, Tikkurila will continue to raise its sales prices and to take action to boost profitability.

The ongoing organizational and structural change may cause indirect costs or otherwise negatively affect the company’s operations. 

Tikkurila’s revenue is expected to remain at last year’s level and adjusted operating profit to improve. 

Tikkurila's disclosed estimates on the outlook for 2017

Half Year Report on August 4, 2017: Outlook for 2017

Among Tikkurila’s key markets in Sweden and Poland, the fairly strong economic growth is expected to continue in 2017. The economies of Finland and Russia are also anticipated to grow slightly. Demand for paint is predicted to moderately increase in Tikkurila’s operational area during the current year. The importance of the professional segment is growing, which affects the sales structure of the Tikkurila Group.  

The problems related to the introduction of the new ERP system and the availability of raw materials meant that Tikkurila could not fully meet market demand during the first half of 2017. The problems related to the ERP system has been solved to a large extent but they will still affect our operations in the second half.  

Raw material prices are expected to rise, but Tikkurila will aim to compensate for this impact by intensifying its raw material procurement, increasing local purchasing in Russia, and by increasing its sales prices. Furthermore, there are risks related to the availability of titanium dioxide. 

Additional costs will be generated by restructuring activities and the introduction of the new ERP system. 

Stock Exchange Release on July 13, 2017: Tikkurila lowers its guidance for 2017

Tikkurila expects its revenue to remain at last year’s level and adjusted operating profit for the financial year 2017 to remain below the 2016 level.

Financial Statement Release on February 9, 2017: Outlook for 2017

Among Tikkurila’s key markets in Sweden and Poland, the fairly strong economic growth is expected to continue in 2017. The economies of Finland and Russia are also anticipated to grow slightly. Demand for paint is predicted to moderately increase in Tikkurila’s operational area during the current year. The importance of the professional segment is growing, which affects the sales structure of the Tikkurila Group. 

Raw material prices are expected to rise, but Tikkurila will aim to compensate for this impact by intensifying its raw material procurement, increasing local purchasing in Russia, and by increasing its sales prices. Furthermore, there are risks related to the availability of titanium dioxide. 

Tikkurila's disclosed estimates on the outlook for 2016


New guidance announced on December 14, 2016:

Tikkurila expects its revenue for the financial year 2016, with exchange rates as of the publication date of the financial statement release, to be at the same level as in 2015. Adjusted operating profit is expected to be below the 2015 level.

Half Year Report on August 4, 2016: Outlook for 2016

Growth in the EU region is forecasted to be steady but fairly low. The importance of the Western markets, particularly Sweden and Poland, is expected to increase further. The weak economic situation in Russia and the low level of ruble will make the operating environment difficult in 2016. In Russia, paint demand is expected to decrease and the relative market share of the lower price and quality grade products is expected to grow. Tikkurila is planning to increase its prices primarily in Russia, as well as to increase local manufacturing and raw material purchasing. Sales and marketing investments will continue in the previous years' manner in order to strengthen the market position. At the same time, increased operational efficiency and cost savings will be actively sought in all operations.  

Tikkurila expects its revenue for the financial year 2016, with exchange rates as of the publication date of the financial statement release, to be at the same level as in 2015. Adjusted operating profit is expected to stay at 2015 level.

Financial Statement Release on February 9, 2016: Outlook for 2016

Growth in the EU region is forecasted to be steady but fairly low. The importance of the Western markets, particularly Sweden and Poland, is expected to increase further. The weak economic situation in Russia and the low level of ruble will make the operating environment difficult in 2016. In Russia, paint demand is expected to decrease and the relative market share of the lower price and quality grade products is expected to grow. Tikkurila is planning to increase its prices primarily in Russia, as well as to increase local manufacturing and raw material purchasing. Sales and marketing investments will continue in the previous years' manner in order to strengthen the market position. At the same time, increased operational efficiency and cost savings will be actively sought in all operations.  

Tikkurila expects its revenue for the financial year 2016, with exchange rates as of the publication date of the financial statement release, to be at the same level as in 2015. EBIT excluding non-recurring items is expected to stay at 2015 level.

Tikkurila's disclosed estimates on the outlook for 2015

Interim Report on November 5, 2015: Outlook for 2015

The geopolitical tensions, low oil prices and the weak ruble will make a difficult operating environment for 2015. The Russian economy is anticipated to weaken considerably, and the EU region is expected to see a slow recovery. The demand for paint is anticipated to reduce in Russia, with a relative increase expected in the market share of the lower price and quality grade products. Demand in the EU region is expected to remain close to last year’s level. As in the previous years, Tikkurila will continue investing in sales and marketing in order to strengthen its market position. The level of costs is being continuously monitored.

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2015 to be below the 2014 level.

Interim Report on August 4, 2015: Outlook for 2015

The geopolitical tensions, low oil prices and the weak ruble will make a difficult operating environment for 2015. The Russian economy is anticipated to weaken considerably, and the EU region is expected to see a slow recovery. The demand for paint is anticipated to reduce in Russia, with a relative increase expected in the market share of the lower price and quality grade products. Demand in the EU region is expected to remain close to last year’s level. Tikkurila will increase sales prices mainly in Russia to partly, not fully, compensate for the effects of the weak ruble. As in the previous years, Tikkurila will continue investing in sales and marketing in order to strengthen its market position. The level of costs is being continuously monitored. 

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2015 to be below the 2014 level.

Interim Report on April 29, 2015: Outlook for 2015

The geopolitical tensions, low oil prices and the weak ruble will make a difficult operating environment for 2015. The Russian economy is anticipated to weaken considerably, and the EU region is expected to see a slow recovery. The demand for paint is anticipated to reduce in Russia, with a relative increase expected in the market share of the lower price and quality grade products. Demand in the EU region is expected to remain close to last year’s level. Tikkurila will increase sales prices mainly in Russia to partly, not fully, compensate for the effects of the weak ruble. As in the previous years, Tikkurila will continue investing in sales and marketing in order to strengthen its market position. The level of costs is being continuously monitored. 

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2015 to be below the 2014 level.

Financial Statement Release on February 10, 2015: Outlook for 2015

The geopolitical tensions, low oil prices and the weak ruble will make a difficult operating environment for 2015. The Russian economy is anticipated to weaken considerably, and the EU region is expected to see a slow recovery. The demand for paint is anticipated to reduce in Russia, with a relative increase expected in the market share of the lower price and quality grade products. Demand in the EU region is expected to remain close to last year's level. Tikkurila will increase sales prices mainly in Russia to partly, not fully, compensate for the effects of the weak ruble. As in the previous years, Tikkurila will continue investing in sales and marketing in order to strengthen its market position. The level of costs is being continuously monitored.

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2015 to be below the 2014 level.

Tikkurila's disclosed estimates on the outlook for 2014

Stock Exchange Release on November 14, 2014: Tikkurila lowers its guidance for 2014

The depreciation of the Russian ruble has accelerated in the past few weeks, which has a significant negative impact on Tikkurila's euro-denominated revenue for 2014. In addition, the weakened economic situation has clearly reduced the demand for paint during the last few weeks in Russia, in particular. The decrease in revenue and weak foreign exchange rates will have a negative impact also on the operating profit for 2014.

New guidance:
Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to be below the 2013 level.

Interim Report on November 6, 2014: Outlook for 2014

For the last months of 2014, the economic growth is expected to be weak in Tikkurila's key market areas. Considerable regional differences are forecasted between Tikkurila's different markets in private consumption and construction volumes in 2014, but overall growth is estimated to remain low. No considerable change is expected in the demand for Tikkurila's products compared to last year. Cost inflation is expected to continue, and investments in sales, marketing and innovation activities are forecasted to increase the fixed cost level. Raw material prices are forecasted to remain stable.

Tikkurila reiterates its guidance for 2014.

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level.

Interim Report on July 25, 2014: Outlook for 2014

Tikkurila reiterates its guidance for 2014. 

The economic situation in Europe is expected to improve moderately in 2014. Considerable regional differences are forecasted between Tikkurila's different markets in private consumption and construction volumes in 2014, but overall growth is estimated to remain low. No considerable change is expected in the demand for Tikkurila's products compared to last year. Cost inflation is expected to continue, and investments in sales, marketing and innovation activities are forecasted to increase the fixed cost level. Raw material prices are forecasted to remain stable. 

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level.

Interim Report on May 8, 2014: Outlook for 2014

Tikkurila reiterates its guidance for 2014. 

The economic situation in Europe is expected to improve moderately in 2014. Considerable regional differences are forecasted between Tikkurila's different markets in private consumption and construction volumes in 2014, but overall growth is estimated to remain low. No considerable change is expected in the demand for Tikkurila's products compared to last year. Cost inflation is expected to continue, and investments in sales, marketing and innovation activities are forecasted to increase the fixed cost level. Raw material prices are forecasted to remain stable.

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level.

Financial Statement Release on February 10, 2014: Outlook for 2014

The economic situation in Europe is expected to improve moderately in 2014. Considerable regional differences are forecasted between Tikkurila's different markets in private consumption and construction volumes in 2014, but overall growth is estimated to remain rather weak. The GDPs in Tikkurila's key markets, i.e. Russia, Sweden, Finland, and Poland, are expected to grow approximately two percent, on average, in 2014. Based on these estimates, no considerable change is expected in the demand for Tikkurila's products compared to last year. Cost inflation is expected to continue, and investments in sales, marketing and innovation activities are forecasted to increase the fixed cost level. Raw material prices are forecasted to remain stable. 

Tikkurila expects its revenue and EBIT excluding non-recurring items for the financial year 2014 to remain at the 2013 level.
 

Tikkurila's disclosed estimates on the outlook for 2013

Interim Report on November 7, 2013: Outlook for 2013

Tikkurila reiterates its guidance for 2013.

Economic development in Europe is expected to be weak in 2013. The overall uncertainty and increasing unemployment are expected to have a negative impact on consumers' willingness to purchase and on the demand for Tikkurila's products. The outlook of the economic development of Russia, which is one of the key markets of Tikkurila, has weakened in comparison to the publishing date of Tikkurila's Financial Statement Release. The average GDP growth of Russia, Sweden, Finland, and Poland, is estimated to be slightly over one percent in 2013. Raw material prices are estimated to remain stable or to decrease slightly.

Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for the financial year 2013 to remain on 2012 level.

Interim Report on July 25, 2013: Outlook for 2013

Tikkurila reiterates its guidance for 2013.

Economic development in Europe is expected to be weak in 2013. The overall uncertainty and increasing unemployment are expected to have a negative impact on consumers’ willingness to purchase and on the demand for Tikkurila’s products. The outlook of the economic development of Russia, which is one of the key markets of Tikkurila, has weakened in comparison to the publishing date of Tikkurila’s Financial Statement Release. The average GDP growth of Russia, Sweden, Finland, and Poland, is estimated to be slightly over one percent in 2013. Raw material prices are estimated to remain stable or to decrease slightly.

Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for the financial year 2013 to remain on 2012 level. 

Interim Report on April 24, 2013: Outlook for 2013

Tikkurila reiterates its guidance for 2013. 

Economic development in Europe is expected to be weak in 2013. The overall uncertainty and increasing unemployment are expected to have a negative impact on consumers' willingness to purchase and on the demand for Tikkurila's products. The outlook of the economic development of Russia, which is one of the key markets of Tikkurila, has weakened in comparison to the publishing date of Tikkurila's Financial Statement Release. The average GDP growth of Russia, Sweden, Finland, and Poland, is estimated to be slightly over one percent in 2013. Raw material prices are estimated to remain stable or to decrease slightly. 

Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for the financial year 2013 to remain on 2012 level.  

Financial Statement Release on February 15, 2013: Outlook for 2013

Economic development in Europe is expected to be weak in 2013. The overall uncertainty and increasing unemployment are expected to have a negative impact on consumers’ willingness to purchase and on the demand for Tikkurila’s products. The GDPs in Tikkurila’s key markets, in other words Russia, Sweden, Finland, and Poland, are estimated to grow an average of approximately two percent in 2013. Raw material prices are estimated to remain stable or to decrease slightly.

Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for the financial year 2013 to remain on 2012 level. 

Tikkurila's disclosed estimates on the outlook for 2012

Interim Report on November 7, 2012: Outlook for 2012

Tikkurila reiterates its outlook for 2012.

Stock Exchange Release on September 11, 2012: Outlook for 2012

Tikkurila upgrades its profit estimate 

Due to favorable development during the first eight months of the year Tikkurila upgrades its profit estimate for 2012, as well as adjusts its estimate on the revenue development.

Tikkurila expects reported EBIT to exceed EUR 65 million (2011: EUR 61.2 million) and EBIT excluding non-recurring items to exceed EUR 70 million (EUR 62.7 million). Reported revenue is expected to exceed EUR 660 million (EUR 644 million). The estimates include the effect of foreign exchange rate fluctuations.

Interim Report on August 2, 2012: Outlook for 2012

Tikkurila reiterates its outlook for 2012.

Interim Report on April 26, 2012: Outlook for 2012

Tikkurila reiterates its outlook for 2012.

Financial Statement Release on February 16, 2012: Outlook for 2012

In 2012, the GDP is expected to remain close to the 2011 levels or the GDP growth is expected to be low in the key market areas of Tikkurila. Further raw material cost increases are predicted, even though it is assumed that the raw material and packaging material cost inflation will be clearly lower than in 2011.

In 2012, Tikkurila expects the revenue growth to exceed the average GDP growth in Tikkurila's main market areas. As far as the profitability is concerned, Tikkurila expects EBIT in euro to stay at the same level as in 2011.

The estimates presented above are based on internal assessment reflecting management's most recent forecasts for full-year 2012 financial performance. These estimates are based on the assumption that foreign exchange rates would stay at the same level as the actual exchange rates on December 31, 2011. The estimates are also based on Tikkurila's current distribution network and business structure. The main market areas referred above include Russia, Sweden, Finland and Poland. Moreover, as announced during the fourth quarter of 2011, a group-wide efficiency program aiming at increasing competitiveness was launched in 2011 and it will be continued in 2012, and therefore the impact of the non-recurring expenses linked to the implementation of the efficiency program or of any potential major restructuring actions, regardless of their timing, are not taken into account in the guidance.

Tikkurila's disclosed estimates on the outlook for 2011

Interim Report October 27, 2011: Short-term outlook

The economic outlook and confidence indicators rapidly weakened during the autumn, predicting a slowdown in growth for many markets. The GDP growth in Tikkurila's main market areas in the last quarter of 2011 is expected to be slower than previously estimated. In addition, raw material costs, as well as salary and other expenses, are expected to continue to rise. 

Tikkurila reiterates its revenue growth and EBIT margin guidance for the financial year 2011. In 2011, Tikkurila expects revenue growth to exceed the average GDP growth in Tikkurila's main market areas.  Tikkurila expects EBIT margin as a percentage of revenue to stay at the same level as in 2010, although it would seem to be that the previously estimated gradual strengthening of growth in the economies in Tikkurila's operating area will not be achieved in many markets for the last months of 2011. These estimates are based on the assumption that foreign exchange rates would stay close to the end of 2010 level. The estimates are also based on Tikkurila's current business structure, when the impact of mergers, acquisitions or divestments carried out in 2011 is excluded. In order to enhance profitability and competitiveness, Tikkurila has decided to continue to increase its sales prices as well as to implement additional measures to increase efficiency and decrease expenses.

Interim Report on August 11, 2011: Outlook for 2011

Tikkurila reiterates its outlook for the financial year 2011.

After the review period financial uncertainty has gained momentum, and therefore it is more difficult to forecast the development during the rest of the year. The purchase behavior of Tikkurila's customers and their customers might change due to the prevailing uncertainty in the international markets. GDP growth is expected to continue in the key market areas of the Tikkurila Group in 2011, but regional and country-specific variances might increase. Further raw material cost increases are predicted. The suppliers for the paint industry will probably not be able to fully match the increasing demand, due to some of the capacity shutdowns carried out during the recession.

Tikkurila reiterates its revenue growth and EBIT margin guidance for the financial year 2011. In 2011, Tikkurila expects revenue growth to exceed the average GDP growth in Tikkurila's main market areas. In spite of the rising raw material prices, Tikkurila expects EBIT margin as a percentage of revenue to stay at the same level as in 2010. These estimates are based on the assumption that foreign exchange rates would stay close to the end of 2010 level and that the gradual economic recovery of Tikkurila's key markets would continue. The estimates are also based on Tikkurila's current business structure, when the impact of mergers, acquisitions or divestments carried out in 2011 is excluded. In order to enhance profitability and competitiveness, Tikkurila has decided to continue to increase sales prices as well as to implement additional measures to increase efficiency and decrease expenses.

Interim Report on May 6, 2011: Outlook for 2011

Tikkurila reiterates its outlook for the financial year 2011.

GDP growth is expected to continue in the key market areas of the Tikkurila Group in 2011. Further raw material cost increases are predicted. The suppliers for the paint industry will probably not be able to fully match the increasing demand, due to some of the capacity shutdowns carried out during the recession.

In 2011, Tikkurila expects revenue growth to exceed the average GDP growth in Tikkurila's main market areas. In spite of the rising raw material prices, Tikkurila expects EBIT margin as a percentage of revenue to stay at the same level as in 2010. These estimates are based on the assumption that foreign exchange rates will stay close to the end of 2010 level and that the gradual economic recovery of Tikkurila's key markets will continue. The estimates are also based on Tikkurila's current business structure.

The contemplated acquisition of the business of Serbian Zorka Color, if and when concluded, will not affect the 2011 financial guidance.

Financial Statement Release on February 11, 2011: Outlook for 2011

GDP growth is expected to continue in the key market areas of the Tikkurila Group in 2011. Further raw material cost increases are predicted. The suppliers for the paint industry will probably not be able to fully match the increasing demand, due to some of the capacity shutdowns carried out during the recession.

In 2011, Tikkurila expects revenue growth to exceed the average GDP growth in Tikkurila's main market areas. In spite of the rising raw material prices, Tikkurila expects EBIT margin as a percentage of revenue to stay at the same level as in 2010. These estimates are based on the assumption that foreign exchange rates will stay close to the end of 2010 level and that the gradual economic recovery of Tikkurila's key markets will continue. The estimates are also based on Tikkurila's current business structure.