2017-02-09 07:00:27 CET
2017-02-09 07:00:27 CET
REGULATED INFORMATION
Lemminkäinen - Financial Statement Release
Lemminkäinen Financial Statements Bulletin 1 January - 31 December 2016
LEMMINKÄINEN CORPORATION FINANCIAL STATEMENTS BULLETIN 9 FEBRUARY 2017 AT 8:00
A.M.
LEMMINKÄINEN FINANCIAL STATEMENTS BULLETIN 1 JANUARY – 31 DECEMBER 2016
October‒December 2016 (10‒12/2015)
· Order inflow was EUR 212.5 million (296.0).
· Order book at the end of the period amounted to EUR 1,265.2 million
(1,180.3).
· Net sales totalled EUR 477.3 million (528.5).
· Operating profit amounted to EUR 35.0 million (18.9), or 7.3% (3.6) of
net sales. The operating profit includes EUR 19.4 million of reimbursements
and EUR 8.3 million of lowered provisions related to the Helsinki Court of
Appeal’s decisions regarding the asphalt cartel as well as write-downs
related to non-core businesses worth EUR 4.9 million. Without these items
the operating profit would have been EUR 12.5 million and operating
margin 2.6%.
· Profit for the period was EUR 22.9 million (9.9).
· Earnings per share were EUR 0.83 (0.33).
· Cash flow from operating activities totalled EUR 38.5 million (30.5).
· Equity ratio at the end of the review period was 39.5% (40.6) and
gearing 24.3% (33.6).
· Interest-bearing net debt at the end of the review period was
EUR 81.1 million (126.8).
January‒December 2016 (1‒12/2015)
· Order inflow was EUR 1,347.2 million (1,417.4).
· Net sales totalled EUR 1,682.7 million (1,879.0).
· Operating profit amounted to EUR 67.6 million (37.3), or 4.0% (2.0) of
net sales. The operating profit includes EUR 19.4 million of
reimbursements and EUR 8.0 million of lowered provisions related to
the Helsinki Court of Appeal’s decisions regarding the asphalt cartel
as well as write-downs related to non-core businesses worth EUR 4.9 million.
Without these items the operating profit would have been EUR 45.1 million
and operating margin 2.7%.
· Profit for the period was EUR 38.0 million (7.2).
· Earnings per share were EUR 1.27 (-0.15).
· Cash flow from operating activities totalled EUR 131.7 million (106.6).
· The Board of Directors proposes to the AGM that for the financial year
that ended on 31 December 2016, Lemminkäinen will distribute a per-share
dividend of EUR 0.66 (0.12).
Profit guidance for 2017
Lemminkäinen estimates that its net sales in 2017 will grow from 2016 (EUR
1,682.7 million). Operating profit (IFRS) in 2017 is expected to improve from
EUR 45.1 million which reflects the operational performance in 2016.
+---------------------+--+------+------+------+-------+-------+------+
|Key figures, IFRS | |10-12/|10-12/|Change| 1-12/| 1-12/|Change|
| | | 2016| 2015| | 2016| 2015| |
+---------------------+--+------+------+------+-------+-------+------+
|Net sales |M€| 477.3| 528.5| -51.2|1,682.7|1,879.0|-196.3|
+---------------------+--+------+------+------+-------+-------+------+
| Paving |M€| 179.3| 180.8| -1.5| 757.6| 796.2| -38.6|
+---------------------+--+------+------+------+-------+-------+------+
| Infra projects |M€| 88.7| 99.2| -10.5| 317.1| 341.4| -24.3|
+---------------------+--+------+------+------+-------+-------+------+
| Building |M€| 196.0| 176.1| 19.9| 581.2| 537.8 | 43.4|
| construction,
Finland | | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
| Russian operations |M€| 15.2| 70.0| -54.8| 54.5| 136.7 | -82.2|
+---------------------+--+------+------+------+-------+-------+------+
| Other operations |M€| -1.9| 2.4| -4.3| -27.7| 66.8| -94.5|
| and Group | | | | | | | |
| eliminations | | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
|Operating profit |M€| 35.0| 18.9| 16.1| 67.6| 37.3| 30.3|
+---------------------+--+------+------+------+-------+-------+------+
| Paving |M€| 0.6| -2.8| 3.4| 25.8| 19.8| 6.0|
+---------------------+--+------+------+------+-------+-------+------+
| Infra projects |M€| 4.3| 3.1| 1.2| 7.6| 8.9| -1.3|
+---------------------+--+------+------+------+-------+-------+------+
| Building |M€| 10.7| 11.4| -0.7| 17.2| 12.9| 4.3|
| construction,
Finland | | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
| Russian operations |M€| -4.4| 10.9| -15.3| -3.8| 2.9| -6.7|
+---------------------+--+------+------+------+-------+-------+------+
| Other operations |M€| 23.9| -3.7| 27.6| 20.9| -7.2| 28.1|
+---------------------+--+------+------+------+-------+-------+------+
|Operating margin | %| 7.3| 3.6| | 4.0| 2.0| |
+---------------------+--+------+------+------+-------+-------+------+
| Paving | %| 0.3| -1.6| | 3.4| 2.5| |
+---------------------+--+------+------+------+-------+-------+------+
| Infra projects | %| 4.9| 3.1| | 2.4| 2.6| |
+---------------------+--+------+------+------+-------+-------+------+
| Building | %| 5.4| 6.5| | 3.0| 2.4| |
| construction,
Finland | | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
| Russian operations | %| -29.2| 15.6| | -7.0| 2.1| |
+---------------------+--+------+------+------+-------+-------+------+
|Pre-tax profit |M€| 30.2| 13.7| 16.5| 49.2| 16.7| 32.5|
+---------------------+--+------+------+------+-------+-------+------+
|Profit for the period|M€| 22.9| 9.9| 13.0| 38.0| 7.2| 30.8|
+---------------------+--+------+------+------+-------+-------+------+
|Earnings per share | €| 0.83| 0.33| 0.50| 1.27| -0.15| 1.42|
|for the period, basic| | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
|Earnings per share | €| 0.82| 0.33| 0.49| 1.26| -0.15| 1.41|
|for the period, | | | | | | | |
|diluted | | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
|Cash flow from |M€| 38.5| 30.5| 8.0| 131.7| 106.6| 25.1|
|operating activities | | | | | | | |
+---------------------+--+------+------+------+-------+-------+------+
+--------------------+--+-------+-------+--------+-------+--------+
|Key figures, IFRS | | 31 Dec| 31 Dec| Change| 30 Sep| Change|
| | | 2016| 2015|12/16 vs| 2016|12/16 vs|
| | | | | 12/15| | 9/16|
+--------------------+--+-------+-------+--------+-------+--------+
|Order book |M€|1,265.2|1,180.3| 84.9|1,406.6| -141.4|
+--------------------+--+-------+-------+--------+-------+--------+
|Operating capital |M€| 388.2| 474.8| -86.6| 394.6| -6.4|
+--------------------+--+-------+-------+--------+-------+--------+
|Balance sheet total |M€| 968.0|1,035.5| -67.5|1,156.7| -188.7|
+--------------------+--+-------+-------+--------+-------+--------+
|Interest-bearing net|M€| 81.1| 126.8| -45.7| 82.0| -0.9|
|debt | | | | | | |
+--------------------+--+-------+-------+--------+-------+--------+
|Equity ratio 1) | %| 39.5| 40.6| | 34.3| |
+--------------------+--+-------+-------+--------+-------+--------+
|Gearing 2) | %| 24.3| 33.6| | 23.7| |
+--------------------+--+-------+-------+--------+-------+--------+
|Return on capital | %| 11.3| 5.3| | 8.3| |
|employed, rolling 12| | | | | | |
|months | | | | | | |
+--------------------+--+-------+-------+--------+-------+--------+
1) Equity ratio, if hybrid bonds were treated as debt: 12/2016: 35.4% and
12/2015: 28.6%.
2) Gearing, if hybrid bonds were treated as debt: 12/2016: 38.8% and 12/2015:
89.6%.
President and CEO Casimir Lindholm:
“Our 2016 operating profit improved year-on-year,” says Casimir Lindholm,
President and CEO. “In Paving, our performance improved. In Building
construction, Finland, housing sales were strong especially during the second
half of the year. In Infra projects, operating profit was weakened by lower
volumes as well as declining margins in individual projects in Sweden and
Finland. In Russian operations, operating profit decreased due to lower volumes
in building construction. During 2016, we have shifted our focus in Russia from
residential development to negotiated contracting in building construction.”
“A major part of the result improvement comes from the reimbursements and
lowered provisions related to the Helsinki Court of Appeal’s decisions regarding
the asphalt cartel given in October 2016, totalling EUR 27 million. After the
decisions we settled the case with 17 municipalities, and in January 2017 also
with the State of Finland. The case may still continue in the Supreme Court with
those 19 municipalities with whom we have not settled.”
“Our financial position has developed favourably throughout the year. Year-on
-year, our operating capital has decreased from EUR 475 million to EUR 388
million and our interest-bearing net debt has declined from EUR 127 million to
EUR 81 million. In addition, we reduced the nominal amount of outstanding hybrid
bonds by EUR 78 million."
“Our order book improved year-on-year. However, we have not succeeded in growing
the Infra project’s order book as planned. During 2016, the segment renewed its
operating model and strengthened its local organisation especially in Sweden. We
have also started measures to improve our paving operations in Sweden.”
“We have now completed the first stage of our strategy for 2014-2019 which was
the strengthening of our balance sheet. We have lightened our balance sheet,
streamlined our business portfolio and decreased our debts significantly. We
will continue to manage the balance sheet and cash flow, and our aim is to
increase our plot investments in growth centres in building construction in
Finland. Going forward, we will focus on improving our operational efficiency
and competiveness in all operations in order to build a solid foundation for
profitable growth.”
Market outlook
In Finland, the total volume of construction is expected to grow slightly in
2017. Residential construction is estimated to decline from 2016 but remain at a
good level. Demand for apartments will still be focused on small units in urban
growth centres. Investor sale is likely to decline but consumer sales are
expected to continue to pick up. Non-residential construction is estimated to
remain stable, due to individual major projects and public sector works.
Renovation is expected to grow moderately due to increasing urbanisation and
public sector works.
Infrastructure construction is expected to grow approximately 1.5% in 2017. The
Government's decisions regarding transport projects in the General Government
Fiscal Plan improve the outlook for both paving and infra projects. The state's
planned investments in basic road maintenance are expected to keep demand stable
for paving in 2017. Demand for infra projects is maintained by complex projects
in urban growth centres and industrial investments but the competition is
intense.
In Norway and Sweden, infrastructure construction is boosted by multi-year,
state-funded traffic infrastructure development programmes. In both countries,
infrastructure construction is expected to grow in 2017. Large-scale road and
railway projects are ongoing or planned near urban growth centres in Sweden and
Norway, which will increase demand for infra projects. In addition, especially
Norway is investing in the development and renewal of energy production. In
paving, public sector investments in roads are expected to increase demand in
both countries.
In Denmark, demand for paving is expected to decline as public investments in
road infrastructure are decreasing.
In Russia, economic growth is estimated to remain at a low level. The
fluctuations in the price of oil are reflected in the currency exchange rate. In
negotiated contracting in building construction, price competition is high but
the reliability of the builder has become a competitive advantage. Construction
and repair projects on major roads are expected to maintain demand for paving.
In the Baltic countries, the volume of infrastructure construction is expected
to start growing moderately.
Briefing
A Finnish-language briefing for analysts and the media will be held at 12:00
noon (EET) on Thursday 9 February 2017 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. The
presentation material can be found in Finnish and English at the company’s
website, www.lemminkainen.com/investors.
Financial reporting in 2017
In 2017, financial reports are published as follows:
9 February 2017 Financial statements bulletin 2016
Week 9 Annual report 2016
27 April 2017 Interim report 1 Jan – 31 March 2017
27 July 2017 Half year financial report 1 Jan – 30 June 2017
26 October 2017 Interim report 1 Jan – 30 Sep 2017
LEMMINKÄINEN CORPORATION
Corporate Communications
Additional information:
Casimir Lindholm, President and CEO, tel. +358 2071 53304
Ilkka Salonen, CFO, tel. +358 2071 53304
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 4,700 professionals we employ, we build
a sustainable society. In 2016, our net sales were EUR 1.7 billion. Lemminkäinen
Corporation’s share is quoted on Nasdaq Helsinki Ltd. www.lemminkainen.com
ATTACHMENT
Financial bulletin 2016 pdf
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