Lemminkäinen's Interim Report 1 January - 30 September 2013

LEMMINKÄINEN CORPORATION             INTERIM REPORT      7 NOVEMBER AT 8:00 A.M.

 

LEMMINKÄINEN'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2013:
An all-time high quarter after a challenging start to the period


July - September 2013 (7 - 9/2012)

• July - September net sales grew by 5% and totalled EUR 751.0 million (716.6).
• New orders received totalled EUR 603.5 million.
• Operating profit was EUR 61.8 million (40.4), with an operating margin of 8.2% (5.6).
• Pre-tax profit was EUR 54.0 million (36.6).
• Earnings per share for continuing operations were EUR 2.02 (1.59).
• Cash flow from operations totalled EUR 108.5 million (29.5).

January - September 2013 (1 - 9/2012)

• January - September net sales were EUR 1,578.7 million (1,599.0).
• Order backlog was EUR 1,993.4 million (1,659.1).
• Operating profit was EUR 11.2 million (26.4), or 0.7 per cent (1.7) of net sales.
• Pre-tax profit was EUR -8.4 million (14.4).
• Earnings per share for continuing operations were EUR -0.61 (0.57).
• Cash flow from operations totalled EUR 30.2 million (38.7).
• Equity was 29.2% (34.4) and gearing was 74.3% (63.4).
• Interest-bearing net debt totalled EUR 304.4 million (276.2).

Profit guidance for 2013

Lemminkäinen reiterates the profit guidance for the current year that it published on 8 August 2013. Net sales in 2013 will be on a par with last year but the 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.

  

Key figures *   7-9/
2013
7-9/
2012
Change   1-9/
2013
1-9/
2012
Change 1-12/
2012

Net sales
EUR million
751.0

716.6

5%
 
1,578.7

1,599.0

-1%

2,267.6

EBITDA
EUR million
77.5

54.6

42%
 
45.5

56.2

-19%

91.4

Operating profit  
EUR million
61.8

40.4

53%
 
11.2

26.4

-58%

50.4
Operating margin % 8.2 5.6     0.7 1.7   2.2

Pre-tax profit
EUR million
54.0

36.6

48%
 
-8.4

14.4
 
29.1

Profit for the period
EUR million
41.2

30.3
 
36%
 
-7.7

11.3
   
20.4

Earnings per share
    
EUR

2.02

1.59
   
-0.61

0.57
 
0.83

Cash flow from operations
EUR million
108.5

29.5
over 100  
30.2

38.7

-22%

57.8

 

*) do not include the effect of divested concrete business in 2012

  

 

Key figures   30 September
2013
30 September
2012
Change 31 December
2012

Order backlog
EUR million
1,993.4

1,659.1

20%

1,443.9

Balance sheet total
EUR million
1,632.0

1,442.5

13%

1,303.5

Interest-bearing net debt
EUR million
304.4

276.2

10%

277.3
Equity ratio % 29.2 34.4   37.2
Gearing % 74.3 63.4   62.8
Return on investment, rolling 12 months % 5.8 9.0   10.8

   

President & CEO's view

"Our third quarter result reached an all-time high level, and also our cash flow was strong." says Timo Kohtamäki, President & CEO. "Infrastructure construction in particular did a fine job in improving its results and offsetting the impact of the delayed start to the season. In building construction in Finland, profitability also improved nicely from the comparison period, thanks to steady housing sales."

According to Kohtamäki, the efficiency improvement measures have enhanced Lemminkäinen's competitiveness especially in Finland where the market situation as a whole continues to be challenging. In Sweden, Norway and Russia, the market situation is brighter. "Our net sales have grown most strongly in these markets. Results have also developed in the right direction."

"In the near future, the improvement of profitability and the enhancement of operational efficiency are our main priorities. We will continue to improve our cost structure and procurement efficiency in all of our operating countries. We are constantly seeking new practices to decrease the impact of seasonality. In addition, we have paid particular attention to project management."  Kohtamäki says.


Market outlook

In Finland, the overall market situation in construction is estimated to still remain quiet this year and next year. The volume of infrastructure construction is declining for the third year in a row, and this trend is not expected to change significantly in the near future. Demand for new apartments will focus more intensely on small apartments in urban growth centres. In St Petersburg, Russia, demand for comfort-class apartments is still strong, and infrastructure construction is boosted by several road projects across Russia. In Sweden and Norway, the market situation in infrastructure construction continues to be strong. 
 

Briefing

A Finnish-language briefing for analysts and the media will be held at 1:00 p.m. on Thursday, 7 November at Lemminkäinen's head office. The street address is Salmisaarenaukio 2, Helsinki, Finland. President & CEO Timo Kohtamäki will present the Interim Report. Presentation materials can be found in Finnish and English at the company's website, www.lemminkainen.com.

 

LEMMINKÄINEN CORPORATION
Corporate Communications

Additional information:
Timo Kohtamäki, President & CEO, tel. +358 2071 53263
Robert Öhman, CFO, tel. +358 2071 53515
Katri Sundström, Vice President, Investor Relations, tel. +358 2071 54813

 

ATTACHMENT Interim report Q3/2013