Lemminkäinen will record non-recurring items in the fourth quarter result
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 20 DECEMBER 2013 AT 9:30 A.M.
LEMMINKÄINEN WILL RECORD NON-RECURRING ITEMS IN THE FOURTH QUARTER RESULT
Lemminkäinen will record approximately EUR 64 million as expenses from the damages related to the asphalt cartel as well as EUR 30 million other non-recurring items in its fourth quarter result in 2013.
On 28 November 2013, the District Court of Helsinki ordered Lemminkäinen and other asphalt industry companies to pay to 35 plaintiffs' damages due to the asphalt cartel. Lemminkäinen's share of the damages is approximately EUR 48 million, which consists of damages ordered to only Lemminkäinen and Lemminkäinen's share of the damages ordered to it and other asphalt industry companies to be paid jointly and severally as well as costs related to them. Lemminkäinen estimates that some of the other defendants, who were ordered to pay damages jointly and severally by the District Court, will not be able to pay their shares. Therefore Lemminkäinen will pay approximately EUR 10 million worth damages and costs related to the damages that were ordered to the other defendants.
In addition to the claims which the District Court has decided on, 14 claims against Lemminkäinen and other asphalt companies for damages are pending a main proceeding. Their capital amounts to approximately EUR 8 million. Of these, Lemminkäinen will make a provision worth EUR 6 million. The estimate is based on the decisions given by the District Court of Helsinki on 28 November 2013. The amount includes also interest and legal expenses related to the damages.
In addition, Lemminkäinen will record non-recurring items in the fourth quarter worth EUR 30 million. Of these, approximately EUR 20 million stems mainly from the impairment of commercial properties, and EUR 10 million stems from the efficiency improvement program started in 2013.
According to the profit guidance issued on 28 November 2013, Lemminkäinen's result in 2013 will be clearly negative.
Timo Kohtamäki, President & CEO
tel. +358 2071 53263
Robert Öhman, CFO
tel. +358 2071 53515
NASDAQ OMX Helsinki
Together with our customers we create conditions that make living, working and travelling functional, safe and healthy. We operate in northern Europe and employ about 8,200 experts. In 2012, our net sales were about EUR 2.3 billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com