Lemminkäinen reduces its full-year profit guidance



Lemminkäinen reduces its full-year profitability guidance given in August in
connection with the January-June interim review. Full year 2010 pre-tax profit
is estimated to be positive but below the 2009 profitability level. The
comparative figures do not include the infringement fine imposed by SAC.  The
2010 net sales are estimated to be at the 2009 level. Earlier Lemminkäinen
estimated that pre-tax profit for 2010 will be at the 2009 level. 

Despite the good season in Finland, the infrastructure construction business
will not be able to compensate the weak result caused by the severe winter. In
all Baltic countries the overall volumes of infrastructure construction have
dropped, and due to the harsh competition, the profitability is poor. In
building construction, increased cost levels and poorer than estimated end-user
demand for commercial and office buildings have decreased the margins in
Finland. In addition, the income recognition of a few building construction
projects has been delayed till 2011. In technical building services and
building products businesses, the competitive situation has remained
challenging, which has weakened their profitability. 

In line with its strategy, Lemminkäinen continues its profitability improvement
program. The Infrastructure construction business sector is improving its
operating efficiency and decreasing its cost structure, especially in the
Baltic countries. The Building construction business sector has initiated
measures to improve the efficiency of project management. Lemminkäinen further
seeks cost-efficiency by unifying its operating methods, improving its
procurement practices and streamlining its structure.  In Finland, Lemminkäinen
commenced last week statutory co-determination negotiations concerning an
estimated reduction of 100 employees. The decision is a part of Lemminkäinen's
initiative to adopt a more centralized and efficient operating model for its
internal support services. 

Lemminkäinen estimates that in 2011 its net sales will increase and pre-tax
profit will clearly improve on 2010. The estimate is based on the initiated
profitability improvement program, improved order book and on the expectation
that the overall market situation will remain stable. Lemminkäinen's order book
in the end of September 2010 was EUR 1,230 million, i.e. 12 percent higher than
in the end of September 2009. 

Corporate Communications

Additional information:
President & CEO Timo Kohtamäki
Lemminkäinen Corporation
Tel. +358 2071 53263

NASDAQ OMX Helsinki Ltd
Key media

Lemminkäinen Group operates in all areas of the construction sector. The
Group's business sectors are Building Construction, Infrastructure
Construction, Technical Building Services, and Building Products. Net sales in
2009 were approx. EUR 2.0 billion, of which international operations accounted
for over a quarter. The Group employs about 8,600 people. Lemminkäinen
Corporation's share is quoted on NASDAQ OMX Helsinki Ltd. www.lemminkainen.com