Lemminkäinen Interim Report 1 January – 30 September 2016
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 27 OCTOBER 2016 AT 8:00 A.M.
LEMMINKÄINEN INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2016
July‒September 2016 (7‒9/2015)
- Order inflow was EUR 351.4 million (312.2).
- Order book at the end of the period amounted to EUR 1,406.6 million (1,268.5).
- Net sales totalled EUR 531.6 million (568.8).
- Operating profit amounted to EUR 42.8 million (20.9), or 8.0 % (3.7) of net sales.
- Profit for the period was EUR 30.7 million (12.0).
- Earnings per share were EUR 1.27 (0.43).
- Cash flow from operating activities totalled EUR 86.0 million (50.1).
- Equity ratio at the end of the review period was 34.3% (35.0) and gearing 23.7% (41.7).
- Interest-bearing net debt at the end of the review period was EUR 82.0 million (154.4).
January‒September 2016 (1‒9/2015)
- Order inflow was EUR 1,134.7 million (1,121.5).
- Net sales totalled EUR 1,205.4 million (1,350.5).
- Operating profit amounted to EUR 32.6 million (18.4), or 2.7 % (1.4) of net sales.
- Profit for the period was EUR 15.1 million (-2.7).
- Earnings per share were EUR 0.44 (-0.48).
- Cash flow from operating activities totalled EUR 93.2 million (76.2).
Profit guidance for 2016
Lemminkäinen updated its profit guidance for 2016 on 20 October 2016. According to the new profit guidance 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 clearly as compared to 2015 (EUR 37.3 million).
|Key figures, IFRS||7-9/
|Building construction, Finland||M€||131.1||103.4||27.7||385.1||361.7||23.4||537.8|
|Other operations and Group eliminations||M€||-15.7||24.8||-40.5||-25.8||64.5||-90.3||66.8|
|Building construction, Finland||M€||3.5||-2.3||5.8||6.5||1.5||5.0||12.9|
|Building construction, Finland||%||2.7||-2.2||1.7||0.4||2.4|
|Profit for the period||M€||30.7||12.0||18.7||15.1||-2.7||17.8||7.2|
|Earnings per share for the period||€||1.27||0.43||0.84||0.44||-0.48||0.92||-0.15|
|Cash flow from operating activities||M€||86.0||50.1||35.9||93.2||76.2||17.0||106.6|
|Key figures, IFRS||30 Sep 2016||30 Sep 2015||Change 9/16 vs 9/15||30 June 2016||Change 9/16 vs 6/16||31 Dec 2015|
|Balance sheet total||M€||1,156.7||1,235.6||-78.9||1,055.5||101.2||1,035.5|
|Interest-bearing net debt||M€||82.0||154.4||-72.4||165.2||-83.2||126.8|
|Equity ratio 1)||%||34.3||35.0||33.8||40.6|
|Return on capital employed, rolling 12 months||%||8.3||2.5||4.6||5.3|
1) Equity ratio, if hybrid bonds were treated as debt: 9/2016: 27.4%, 9/2015: 24.5% and 12/2015: 28.6%.
2) Gearing, if hybrid bonds were treated as debt: 9/2016: 54.6%, 9/2015: 102.8% and 12/2015: 89.6%.
President and CEO Casimir Lindholm:
“Our third quarter operating profit improved year-on-year in all business segments except in Infra projects,” says Casimir Lindholm, President and CEO. “Overall the Paving segment has improved its performance. Especially, the measures we have taken to improve the operations in Norway are proceeding as planned. We have identified operational challenges in Sweden, which we need to address. In Building construction, Finland, housing sales especially in the Helsinki metropolitan area supported the segment’s result. In Russian operations, our operating profit last year was weakened by a write-down related to our decision to withdraw from the planned Ilmatar project. In Infra projects, declined margins in individual projects in Sweden and Finland weakened the operating profit.”
“Our financial position has strengthened year-on-year. Our operating capital decreased from EUR 486 million to EUR 395 million. The number of unsold completed housing units at the end of September dropped from 304 to 191 units in Building construction, Finland. Our interest-bearing net debt decreased from EUR 154 million to EUR 82 million. In addition, our cash flow from operations during the third quarter was very strong, EUR 86 million.”
“Our order book developed positively. In Paving, the order book grew year-on-year even though the fallen price of bitumen has decreased unit prices. In Building construction, Finland, the segment’s strong order book was supported by the start-ups of six new residential development projects. In Russia, we won two new negotiated building construction contracts. In Infra projects, the market outlook is positive especially in Scandinavia but our order inflow is still too weak.”
“After the review period, the Helsinki Court of Appeal published its decisions regarding the damages related to the asphalt cartel. The Court of Appeal ordered us to pay less damages than the District Court did and we are entitled to receive refunds in total approximately EUR 19 million consisting of capital as well as interest and legal expenses. We are satisfied with the decisions of the Court of Appeal to the extent our appeals were accepted. The reimbursements will be recorded as income in our fourth-quarter result.”
“With the support from our solid order book and strong financial position, we continue to improve our operational result and competitiveness in all operations. In addition, we seek profitable growth from infra projects especially in Sweden and Norway, where states continue to invest in long-term urban infrastructure development.”
A Finnish-language briefing for analysts and the media will be held at 12:00 noon on Thursday 27 October at Lemminkäinen’s head office. The street address is Salmisaarenaukio 2, Helsinki, Finland. Lemminkäinen's President and CEO Casimir Lindholm will present the Interim Report. The 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 are 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
Casimir Lindholm, President and CEO, tel. +358 2071 53304
Ilkka Salonen, CFO, tel. +358 2071 53304
Nasdaq Helsinki Ltd
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