Lemminkäinen changes its profit guidance for 2013
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 19 APRIL 2013 AT 9.30 A.M.
LEMMINKÄINEN CHANGES ITS PROFIT GUIDANCE FOR 2013
Lemminkäinen is lowering its full-year profit guidance that was issued in February in conjunction with the publication of Lemminkäinen's 2012 Financial Statements bulletin. Lemminkäinen estimates that its net sales and operating profit for 2013 will remain at the same level as in 2012. Lemminkäinen's previous profit guidance estimated that its net sales would remain at the same level as in 2012, and that its operating profit would improve on 2012. In 2012, the company's net sales totalled EUR 2,268 million and its operating profit EUR 50 million.
In St Petersburg, delays in authorities' permit processing have further postponed the start of new residential projects. Lemminkäinen estimates that the project scheduled for completion this year will not be recognised as income in 2013.
In Lemminkäinen's main markets in Northern Europe, the launch of the paving season has been delayed by an average of six weeks. The order intake has been good, but there have been delays in starting work. Lemminkäinen's result for the January–March period will fall noticeably short of the 2012 comparison period.
Lemminkäinen has also decided to divest part of its telecommunications business. The company expects to recognise a loss of about EUR 6 million from the divestment in 2013, of which about half was recognised during the first quarter.
Although the EUR 50 million efficiency programme that Lemminkäinen has launched in Finland and the corrective measures initiated in Norway are progressing according to the plan, the effects are not expected to compensate for the above-mentioned weaker performance.
Lemminkäinen's Interim Report for January–March 2013 will be published on Wednesday, 8 May 2013. A briefing for the media, analysts and investors will be arranged in conjunction with the interim report.
Timo Kohtamäki, President & CEO
tel. +358 2071 53263
Robert Öhman, Chief Financial Officer
tel. +358 2071 53515
NASDAQ OMX Helsinki
Lemminkäinen Group operates in all areas of the construction sector. The Group's business segments are building construction, infrastructure construction, technical building services and international operations. Net sales in 2012 were about EUR 2.3 billion, of which international operations accounted for roughly 40 per cent. The Group employs an average of 8,200 people. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com