VTT's turnover rises and its profitability improves
VTT's turnover rose three per cent to 225 million euro during 2005. The profitability of activities improved somewhat. The overall result was a surplus of 5.4 million euro, and the result from commercial activities alone was 6.3 million euro.
Profitability improved mainly due to the growth of activities funded by basic funding and good cost management. Functional profitability improved by approximately one million euro compared to last year. The result from commercial activities was clearly better than the cost correlation goal set for VTT in the state budget (+2 million euro). External income from the domestic public sector fell. Tekes income was at the same level as last year, 31 million euro. Income from domestic and foreign private sectors was a total of 77 million euro, which accounted for 34% of turnover and was nearly the same result as the year before.
Income from abroad same as last year
Income from abroad was 31 million euro and made up 14% of turnover. Sixty per cent of foreign income came from the EU.
Challenging economic outlook for technology and research
The economic outlook for Finnish businesses is quite good at the moment. The demand for research and development services also increased during 2005. However, it is predicted that Finland's as well as VTT's future will be full of challenges this year, if companies transfer their research activities abroad.
VTT changed its functional structure at the beginning of the year by improving the availability of comprehensive expertise, competence and services for customers. New procedures and sales and marketing streamlining actions will in the future create preconditions for the growth of VTT's commercial activities. The possibility to achieve the set objective of 4% growth in external income still exists. However, this requires that VTT's order book will expand notably and quickly.