Lemminkäinen - The best way to build
Lemminkäinen is known for its expertise in building construction, infrastructure construction and technical building services. Finland is our main market, but we also operate in the other Nordic countries, Russia and Baltic countries. With a hundred years of experience we create conditions that make living, working and travelling easy, safe and healthy. In the future, we will be seeking growth from renovation, Russian residential construction and Nordic infrastructure construction in particular.
Lemminkäinen Fact Sheet >>
Our main goals for the strategic period 2010–2013 are to enhance our business operations, improve our financial position and create one united Lemminkäinen through restructuring and harmonized working methods. Using this approach, we are seeking average annual net sales growth of 10 per cent, a return on investment of 18 per cent and an equity ratio of 35 per cent. We also aim for a stable distribution of dividends in which at least 40% of the result for the financial year is distributed as dividends to the shareholders.
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In 2010 Lemminkäinen´s net sales totalled EUR 1.9 billion, of which operations outside Finland accounted for 30 %. The Group had about 8,300 employees in 2010.
Group key figures »
Lemminkäinen Corporation’s share is listed on NASDAQ OMX Helsinki.
Lemminkäinen´s share monitor >>
Lemminkäinen´s business operations are organised into four business sectors:
| | Building construction
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| Infrastructure construction Lemminkäinen is Finland's biggest constructor of infrastructure. The business sector offers paving, mineral aggregates, civil and foundation engineering, geotechnical engineering, concrete products and engineering as well as road, street and rail network construction and maintenance. The company specialises in demanding foundation, rock and concrete constructions – with a focus on growth centres – as well as rock engineering projects for mines. Infrastructure Construction produces stable results independent of the economic climate. |
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| International operations On 1 January 2012, Lemminkäinen's international operations were grouped into a separate business sector. In addition to Finland, Lemminkäinen's main market areas comprise neighbouring regions of Russia, the other Nordic countries and the Baltic countries. In St Petersburg, Lemminkäinen focuses on residential construction. The aim is to start up the construction of about 1,000 residential units annually. In Sweden Lemminkäinen is a well-established provider of geotechnical engineering services, while in Norway and Denmark the company is best known for its paving business. In 2010 Lemminkäinen was the second largest paving contractor in the Northern countries.. In the Baltic countries, Lemminkäinen is one of the biggest infrastructure constructors. International operations currently account for approximately a third of Lemminkäinen's turnover. The aim is to increase this share to 40 per cent. |
Lemminkäinen's financial situation subject to quarterly fluctuation
Lemminkäinen's business is subject to seasonal fluctuation. The most strongly affected segment is paving, where work starts in spring and comes to a standstill in winter. In Norway and Denmark, however, the paving season is usually longer than in Finland, sometimes even continuing throughout the year. Paving accounts for roughly a quarter of Lemminkäinen's total business (financial statement 2010).
Seasonal fluctuation is reflected in Lemminkäinen's quarterly reports. Typically, a loss is posted for the first quarter, while the third quarter results are above average. At this point, the total profit for the financial year is usually clearly positive. Due to seasonal fluctuation, the share of invested capital and interest-bearing liabilities is usually at its largest during the first half of the year. Only the key figures in the financial statement for the entire year provide an appropriate description of the company's financial situation.
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Updated 16.1.2012