Lemminkäinen withdraws from its role as a developer in Ilmatar housing construction project in Russia
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 31 MARCH 2015 AT 9:15 A.M.
LEMMINKÄINEN WITHDRAWS FROM ITS ROLE AS DEVELOPER IN ILMATAR HOUSING CONSTRUCTION PROJECT IN RUSSIA
Lemminkäinen has decided to withdraw from its role as developer in a planned project with Lipsanen & Co. Group in Vasily Island in St Petersburg, including 2,000 apartments. The decision is impacted by the uncertainties in the operating environment and weakened economic situation in Russia as well as the risk level of the project for Lemminkäinen. Lemminkäinen and Lipsanen & Co. Group made a framework agreement regarding the project in February 2011. The companies are negotiating alternative ways to carry out the project.
“Our building construction and paving businesses continue in Russia and our ongoing projects in St Petersburg and Moscow proceed as planned,” says Casimir Lindholm, President and CEO at Lemminkäinen.
At the end of year 2014, Lemminkäinen had 755 employees in its Russian operations and the net sales were EUR 196 million. In Lemminkäinen’s strategy review in July 2014, the company estimated that it does not expect its net sales in Russia to increase significantly in the next few years.
Lemminkäinen will keep its profit guidance for 2015 intact: Lemminkäinen estimates that its net sales in 2015 will not increase as compared to 2014 (EUR 2,044.5 million). Operating profit (IFRS) in 2015 is expected to improve as compared to 2014 (EUR 36.3 million).
Lemminkäinen announced on 10 February 2011 the Ilmatar project.
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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 5,600 professionals. In 2014, our net sales were about EUR 2.0 billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com