Lemminkäinen lowers its profit guidance for 2013
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 18 JULY 2013 AT 8.30 A.M.
LEMMINKÄINEN LOWERS ITS PROFIT GUIDANCE FOR 2013
Lemminkäinen lowers its profit guidance for 2013. The new guidance is: "On the basis of the order book and the short-term outlook for demand, net sales in 2013 are expected to be on a par with 2012. Operating profit for 2013 is expected to fall short of 2012. In 2012, Lemminkäinen's net sales totalled EUR 2,268 million and its operating profit amounted to EUR 50 million."
The earlier profit guidance, issued on 19 April 2013, was: "Lemminkäinen estimates that its net sales and operating profit for 2013 will remain at the same level as in 2012. This estimate is based on the assumption that Lemminkäinen's efficiency programme will continue to progress according to plan and that the general market situation in construction will not significantly weaken compared to early 2013."
The market situation in construction has weakened. Furthermore, the full-year earnings trend in the paving business is burdened by the late start of the paving season in all of Lemminkäinen's main market areas. The paving business accounts for about 35 per cent of the company's operations.
Lemminkäinen intends to accelerate its current efficiency-boosting measures and to start new actions to improve competitiveness in the challenging market. Additional information will be provided in the January-June interim report, which will be published on 8 August 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, CFO
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