Lemminkäinen - Interim report (Q1 and Q3)

Lemminkäinen's Interim Report 1 January - 30 September 2013

LEMMINKÄINEN CORPORATION             INTERIM REPORT      7 NOVEMBER AT 8:00 A.M.



LEMMINKÄINEN'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2013:
An all-time high quarter after a challenging start to the period


July - September 2013 (7 - 9/2012)

• July - September net sales grew by 5% and totalled EUR 751.0 million (716.6).
• New orders received totalled EUR 603.5 million.
• Operating profit was EUR 61.8 million (40.4), with an operating margin of
8.2% (5.6). 
• Pre-tax profit was EUR 54.0 million (36.6).
• Earnings per share for continuing operations were EUR 2.02 (1.59).
• Cash flow from operations totalled EUR 108.5 million (29.5).

January - September 2013 (1 - 9/2012)

• January - September net sales were EUR 1,578.7 million (1,599.0).
• Order backlog was EUR 1,993.4 million (1,659.1).
• Operating profit was EUR 11.2 million (26.4), or 0.7 per cent (1.7) of net
sales. 
• Pre-tax profit was EUR -8.4 million (14.4).
• Earnings per share for continuing operations were EUR -0.61 (0.57).
• Cash flow from operations totalled EUR 30.2 million (38.7).
• Equity was 29.2% (34.4) and gearing was 74.3% (63.4).
• Interest-bearing net debt totalled EUR 304.4 million (276.2).

Profit guidance for 2013

Lemminkäinen reiterates the profit guidance for the current year that it
published on 8 August 2013. Net sales in 2013 will be on a par with last year
but the operating profit for 2013 is expected to fall short of 2012. In 2012,
Lemminkäinen's net sales totalled EUR 2,268 million and its operating profit
amounted to EUR 50 million. 



Key figures *             7-9/   7-9/  Change     1-9/     1-9/  Change    1-12/
                          2013   2012             2013     2012             2012
Net sales           EUR  751.0  716.6      5%  1,578.7  1,599.0     -1%  2,267.6
                million                                                         
--------------------------------------------------------------------------------
EBITDA              EUR   77.5   54.6     42%     45.5     56.2    -19%     91.4
                million                                                         
--------------------------------------------------------------------------------
Operating           EUR   61.8   40.4     53%     11.2     26.4    -58%     50.4
 profit         million                                                         
--------------------------------------------------------------------------------
Operating             %    8.2    5.6              0.7      1.7              2.2
 margin                                                                         
--------------------------------------------------------------------------------
Pre-tax profit      EUR   54.0   36.6     48%     -8.4     14.4             29.1
                million                                                         
--------------------------------------------------------------------------------
Profit for the      EUR   41.2   30.3     36%     -7.7     11.3             20.4
 period         million                                                         
--------------------------------------------------------------------------------
Earnings per        EUR   2.02   1.59            -0.61     0.57             0.83
 share                                                                          
--------------------------------------------------------------------------------
Cash flow from      EUR  108.5   29.5    over     30.2     38.7    -22%     57.8
 operations     million                   100                                   



*) do not include the effect of divested concrete business in 2012





Key figures                                     30         30  Change         31
                                         September  September           December
                                              2013       2012               2012
Order backlog                      EUR     1,993.4    1,659.1     20%    1,443.9
                               million                                          
--------------------------------------------------------------------------------
Balance sheet total                EUR     1,632.0    1,442.5     13%    1,303.5
                               million                                          
--------------------------------------------------------------------------------
Interest-bearing net debt          EUR       304.4      276.2     10%      277.3
                               million                                          
--------------------------------------------------------------------------------
Equity ratio                         %        29.2       34.4               37.2
--------------------------------------------------------------------------------
Gearing                              %        74.3       63.4               62.8
--------------------------------------------------------------------------------
Return on investment,                %         5.8        9.0               10.8
 rolling 12 months                                                              



President & CEO's view"Our third quarter result reached an all-time high level, and also our cash
flow was strong." says Timo Kohtamäki, President & CEO. "Infrastructure
construction in particular did a fine job in improving its results and
offsetting the impact of the delayed start to the season. In building
construction in Finland, profitability also improved nicely from the comparison
period, thanks to steady housing sales."

According to Kohtamäki, the efficiency improvement measures have enhanced
Lemminkäinen's competitiveness especially in Finland where the market situation
as a whole continues to be challenging. In Sweden, Norway and Russia, the
market situation is brighter. "Our net sales have grown most strongly in these
markets. Results have also developed in the right direction.""In the near future, the improvement of profitability and the enhancement of
operational efficiency are our main priorities. We will continue to improve our
cost structure and procurement efficiency in all of our operating countries. We
are constantly seeking new practices to decrease the impact of seasonality. In
addition, we have paid particular attention to project management."  Kohtamäki
says. 


Market outlook

In Finland, the overall market situation in construction is estimated to still
remain quiet this year and next year. The volume of infrastructure construction
is declining for the third year in a row, and this trend is not expected to
change significantly in the near future. Demand for new apartments will focus
more intensely on small apartments in urban growth centres. In St Petersburg,
Russia, demand for comfort-class apartments is still strong, and infrastructure
construction is boosted by several road projects across Russia. In Sweden and
Norway, the market situation in infrastructure construction continues to be
strong. 


Briefing

A Finnish-language briefing for analysts and the media will be held at 1:00
p.m. on Thursday, 7 November at Lemminkäinen's head office. The street address
is Salmisaarenaukio 2, Helsinki, Finland. President & CEO Timo Kohtamäki will
present the Interim Report. Presentation materials can be found in Finnish and
English at the company's website, www.lemminkainen.com. 



LEMMINKÄINEN CORPORATION
Corporate Communications

Additional information:
Timo Kohtamäki, President & CEO, tel. +358 2071 53263
Robert Öhman, CFO, tel. +358 2071 53515
Katri Sundström, Vice President, Investor Relations, tel. +358 2071 54813



ATTACHMENT Interim report Q3/2013

Attachments:

Interim_report_Q3_2013.pdf