Lemminkäinen lowers the provision related to the asphalt cartel damages and simultaneously records write-downs in the fourth quarter result
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE DAY MONTH 2016 AT 9:20 A.M.
LEMMINKÄINEN LOWERS THE PROVISION RELATED TO THE ASPHALT CARTEL DAMAGES AND SIMULTANEOUSLY RECORDS WRITE-DOWNS IN THE FOURTH QUARTER RESULT
Lemminkäinen lowers the provisions related to the asphalt cartel damages and simultaneously records write-downs related to non-core businesses in its fourth quarter result. These items will have a EUR 3.4 million positive impact on the fourth quarter operating profit.
On 20 October 2016, the Helsinki Court of Appeal gave its decisions in the legal proceedings concerning the damages related to the asphalt cartel. In addition to these claims, Lemminkäinen has been served summons regarding 21 claims for damages. For these claims, Lemminkäinen had earlier made a provision based on the District Court’s decisions. The capital amount of these claims is approximately EUR 26 million and based on the Helsinki Court of Appeal’s decisions given in October 2016 Lemminkäinen lowers the provision by EUR 8.3 million, from EUR 13.4 million to EUR 5.1 million.
Lemminkäinen will record write-downs related to non-core businesses in the fourth quarter worth EUR 4.9 million. These write-downs are related to the impaired value of Lemminkäinen’s only plot in Russia as well as the divestments of the Lemcon Networks businesses in 2013 and 2014 from which the company has doubtful receivables.
These items do not have an impact on Lemminkäinen’s guidance for 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