Lemminkäinen Financial Statements Bulletin

LEMMINKÄINEN CORPORATION FINANCIAL STATEMENTS BULLETIN 4 FEBRUARY 2016 AT 8:00 A.M.

LEMMINKÄINEN FINANCIAL STATEMENTS BULLETIN
1 January  – 31 December 2015

October–December 2015 (10–12/2014)

  • Order inflow was EUR 296.0 million (128.6).
  • Net sales totalled EUR 528.5 million (608.3).
  • Operating profit amounted to EUR 18.9 million (0.1), or 3.6% (0.0) of net sales.
  • Profit for the period was EUR 9.9 million (-6.3). Profit for the period in continuing operations was EUR 9.9 million (-6.2).
  • Earnings per share were EUR 0.33 (-0.42). Earnings per share in continuing operations were EUR 0.33 (-0.41).
  • Cash flow from operating activities totalled EUR 30.5 million (-1.1).
  • Equity ratio at the end of the review period was 40.6% (37.1) and gearing 33.6% (51.8).
  • Interest-bearing net debt at the end of the review period was EUR 126.8 million (213.6).

January–December 2015 (1–12/2014)

  • Order book at the end of period amounted to EUR 1,180.3 million (1,456.1).
  • Net sales totalled EUR 1,879.0 million (2,044.5).
  • Operating profit was EUR 37.3 million (36.3) or 2.0% (1.8) of net sales.
  • Profit for the period was EUR 7.2 million (18.1). The 2014 figure includes the capital gain from the sale of technical building services business. Profit for the period in continuing operations was EUR 7.2 million (-5.0).
  • Earnings per share were EUR -0.15 (0.40). Earnings per share in continuing operations were EUR -0.15 (-0.68).
  • Cash flow from operating activities totalled EUR 106.6 million (-48.4).
  • The Board of Directors proposes to the AGM that for the financial year that ended on 31 December 2015, the company will distribute a per-share dividend of EUR 0.12 (0.00).

Profit guidance for 2016

Lemminkäinen estimates that its net sales in 2016 will be on the level of EUR 1.8 billion. Operating profit (IFRS) in 2016 is expected to improve as compared to 2015 (EUR 37.3 million).

Key figures, IFRS   10-12/
2015
10-12/
2014
Change

1-12/
2015
1-12/
2014
Change

Net sales M€ 528.5 608.3 -79.8 1,879.0 2,044.5 -165.5
   Paving M€ 203.9 236.2 -32.3 874.5 907.5 -33.0
   Infra projects M€ 76.0 73.4 2.6 263.1 286.0 -22.9
   Building construction,
   Finland
M€ 176.1 165.9 10.2 537.8 539.0 -1.2
   Russian operations M€ 70.0 82.0 -12.0 136.7 196.1 -59.4
   Other operations
   and Group
   eliminations
M€ 2.4 50.7 -48.3 66.8 115.9 -49.1
Operating profit M€ 18.9 0.1 18.8 37.3 36.3 1.0
   Paving M€ -3.4 5.2 -8.6 16.9 32.2 -15.3
   Infra projects M€ 3.6 1.5 2.1 11.8 7.2 4.6
   Building construction,
   Finland
M€ 11.4 -2.9 14.3 12.9 9.3 3.6
   Russian
   operations
M€ 10.9 10.2 0.7 2.9 19.7 -16.8
   Other operations M€ -3.7 -13.9 10.2 -7.2 -32.2 25.0
Operating margin % 3.6 0.0   2.0 1.8  
   Paving % -1.7 2.2   1.9 3.5  
   Infra projects % 4.8 2.1   4.5 2.5  
   Building
   construction,
   Finland
% 6.5 -1.8   2.4 1.7  
   Russian
   operations
% 15.6 12.4   2.1 10.1  
Pre-tax profit M€ 13.7 -7.7 21.4 16.7 -1.7 18.4
Profit from continuing operations M€ 9.9 -6.2 16.1 7.2 -5.0 12.2
Profit for the period M€ 9.9 -6.3 16.2 7.2 18.1 -10.9
Earnings per share, continuing operations 0.33 -0.41 0.74 -0.15 -0.68 0.53
Earnings per share for the period 0.33 -0.42 0.75 -0.15 0.40 -0.55
Cash flow from operating activities1) M€ 30.5 -1.1 31.6 106.6 -48.41) 155.0

1)      Cash flow from operating activities includes EUR 59.7 million of damages paid in Q1/2014 related to asphalt cartel.

Key figures, IFRS   31 Dec
2015
31 Dec
2014
Change
12/15
vs. 12/14
30 Sep
2015
Change 12/15
vs.
9/15
Order book M€ 1,180.3 1,456.1 -275.8 1,268.5 -88.2
Operating capital M€ 474.8 590.4 -115.6 486.1 -11.3
Balance sheet total M€ 1,035.5 1,257.8 -222.3 1,235.6 -200.1
Interest-bearing net debt M€ 126.8 213.6 -86.8 154.4 -27.6
Equity ratio1) % 40.6 37.1   35.0  
Gearing2) % 33.6 51.8   41.7  
Return on investment, rolling 12 months3) % 10.2 13.5   9.2  
Return on capital employed,
rolling 12 months4)
% 5.3 4.5   2.5  

1)        Equity ratio, if hybrid bonds were treated as debt: 12/2015: 28.6% and 12/2014: 24.6%.

2)        Gearing, if hybrid bonds were treated as debt: 12/2015: 89.6% and 12/2014: 128.4%.

3)        Includes the effect of discontinued operations

4)        Calculation: Operating profit, rolling 12 months / (Total equity (quarterly average) + interest-bearing liabilities (quarterly average)) x 100

President and CEO Casimir Lindholm:

“In 2015, we focused on improving our financial position and streamlining our business portfolio. This can be seen in our balance sheet, which is clearly lighter than a year ago and in our cash flow from operating activities, which has remained positive throughout the year,” says Casimir Lindholm, President and CEO. “Our financial position has strengthened. We carried out a partial repurchase of our first hybrid bond (EUR 27 million) in the second quarter, our interest-bearing net debt decreased from EUR 214 million to EUR 127 million and our operating capital from EUR 590 million to EUR 475 million.”

“Our 2015 operating profit improved from the comparison period. Infra projects and Building construction, Finland, performed better than in the comparison year. Considering the market situation, our housing sales proceeded well both in Finland and in Russia where our Tapiola 2 project was completed as planned during the fourth quarter. In Paving, the overall result declined due to a weaker year-on-year result in Norway, the divestment of the road maintenance business in Norway as well as declining margins in individual earthworks projects in Finland.”

“During the year, we divested the building construction business in Sweden and the road maintenance business in Norway. In addition, we decided to withdraw from the Ilmatar project in Russia. The streamlining of our portfolio resulted  in more than EUR 20 million write-downs in the 2015 result, but these actions support the implementation of our strategy, improve our competitiveness and financial position in the long run.”

“We are now a more financially stable company than two years ago. Overall, we are proceeding as planned and in the coming years we will continue to focus on improving our operational result and competitiveness in all of our operations. We will improve our financial performance one step at a time while maintaining a moderate risk level. We seek growth especially in infra projects in Scandinavia where ongoing and planned infrastructure development programmes extend over governmental election cycles.”

Briefing

A Finnish-language briefing for analysts and the media will be held at 10:00 a.m. on Thursday 4 February at Lemminkäinen’s head office. The street address is Salmisaarenaukio 2, Helsinki, Finland. Lemminkäinen's President and CEO Casimir Lindholm will present the Financial Statements Bulletin. Presentation material can be found in Finnish and English at the company’s website, www.lemminkainen.com/investors.

Financial reporting in 2016

In 2016, financial reports will be published as follows:

4 February 2016            Financial Statements Bulletin 2015

Week 9                          Annual Report 2015

28 April 2016                 Interim Report 1 Jan – 31 March 2016

28 July 2016                  Interim Report 1 Jan – 30 June 2016

27 October 2016            Interim Report 1 Jan – 30 Sep 2016

LEMMINKÄINEN CORPORATION
Corporate Communications

ADDITIONAL INFORMATION:
Casimir Lindholm, President and CEO, tel. +358 2071 53378
Ilkka Salonen, CFO, tel. +358 2071 53378
 

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.lemminkainen.com

Lemminkäinen is an expert in complex infrastructure construction and building construction in Northern Europe and one of the largest paving companies in its market. Together with our customers and 4,800 professionals we employ, we build a sustainable society. In 2015, our net sales were EUR 1.9 billion. Lemminkäinen Corporation’s share is quoted on Nasdaq Helsinki Ltd. www.lemminkainen.com

ATTACHMENT
Financial bulletin 2015 pdf