(Interim Report 1-9/2008)
Lemminkäinen estimates that the full-year profit before taxes for 2008 will weaken. The Company's net sales and balance sheet will both be stronger than last year.
The results of the building construction and infrastructure construction business sectors will be weaker than in 2007. The results of the technical building services and building products business sectors will remain unchanged or improve.
(Stock exchange release: Profit warning)
Lemminkäinen is amending the outlook reported in its interim financial review for the period 1.1.-30.6.2008. The Company now estimates that full-year earnings for 2008 will fall short of last year's level. Net sales and the balance sheet will both grow.
Lemminkäinen reported earlier that net sales were expected to be higher than last year, and that earnings would remain at the 2007 level. The Company's financial position was expected to remain unchanged.
In Finland the outlook has been weakened by a sharp decline in demand for
housing as well as the cancellation of some already agreed commercial property
deals due to financial difficulties experienced by the buyers. In infrastructure construction full-year earnings will be depressed by increased input costs and the poor market situation in the Baltic States.
The outlook for Lemminkäinen's technical building services and building products business sectors is still good.
(Interim Report 1-6/2008)
Lemminkäinen's order book still stands at a record-high level. The Group's full-year net sales are expected to be higher than last year, but profits are forecast to remain at the 2007 level. The Company's financial position is expected to remain unchanged.
(Interim Report 1-3/2008)
In Finland the market for commercial, industrial and logistics construction is still good. In Russia building construction continues to be brisk and the outlook for Lemminkäinen is promising. The Company is actively involved in Finnish industry's plant building projects around the world, most notably in Poland, China and India.
In Finland Lemminkäinen's on-going transport infrastructure projects will ensurea reasonably good order book for infrastructure construction in 2008 and 2009. Demand for mineral aggregates and ready-mix concrete is particularly good. The markets for rock engineering in Sweden and road construction in the Baltic states continue to grow.
Demand for maintenance, servicing and repair of technical building and facility systems is expected to remain brisk in Finland. The market for building materials will continue to be good in the near future.
The Group's record-breaking order book and the better profit margin of its content create the prerequisites for favourable business development in 2008.
(Financial Statements 2007)
Commercial, office and logistics construction in Finland will continue to be quite active, but may slow down towards the end of the year. The number of own-development housing starts will decline and selling times of housing units will become longer. The construction projects started by Lemminkäinen in 2007 and already planned for 2008 will keep the company's construction volume at a good level in 2008.
In Russia, demand for industrial, residential and commercial construction is still good and the outlook for Lemminkäinen in the country over the next few years is promising.
In infrastructure construction in Finland, 2008 is not expected to be as busy as last year due mainly to reduced activity in the rock engineering segment. The postponement of some major projects will weaken the market situation. Lemminkäinen's ongoing, long-term road projects will ensure that the Company has a reasonable stock of work for 2008 and 2009.
The volume of asphalt-paving work is expected to remain at the same level as in 2007. Demand for crushing contracting and ready-mix concrete is expected to remain good due to ongoing infrastructure projects and the sustained level of relatively active building construction. Infrastructure construction activity in the Baltic Rim region will continue to be brisk.
Demand for servicing, maintenance and repair work in technical building services business area is expected to remain high in Finland. Demand for industrial maintenance services is expected to increase both in Finland and abroad.
The market situation for building materials will remain good on the whole in the near future, although the slowdown in housing production will contribute towards weaker demand for products and services. Urban environment construction will grow steadily.
The outlook for other international operations, e.g. in Poland, India and China, is expected to remain good. Major forest-industry projects that are of interest to Lemminkäinen are being planned in various parts of the world. Demand for 3G-network construction will continue to grow.
The Group's order book as a whole is good, and the prerequisites for favourable business development in 2008 are in place.