2015-07-29 07:00:50 CEST
2015-07-29 07:01:52 CEST
REGULATED INFORMATION
Lemminkäinen - Interim report (Q1 and Q3)
Lemminkäinen Interim Report 1 Jan–30 June 2015
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 29 JULY 2015 AT 8:00 A.M.
LEMMINKÄINEN INTERIM REPORT 1 JAN-30 JUNE 2015
April-June 2015 (4-6/2014)
-- Order inflow was EUR 423.0 million (602.0)
-- Net sales totalled EUR 492.1 million (510.5)
-- Operating profit was EUR 15.6 million (14.8), or 3.2% (2.9) of net sales.
-- Profit for the period was EUR 5.0 million (28.2). Profit for the period in
continuing operations was EUR 5.0 million (5.3).
-- Earnings per share were EUR 0.05 (1.24). Earnings per share in continuing
operations were EUR 0.05 (0.13).
-- Cash flow from operations totalled EUR 23.5 million (-25.5).
-- Equity ratio at the end of the review period was 33.1% (32.1) and gearing
57.2% (85.4).
-- Interest-bearing net debt at the end of the review period was EUR 211.7
million (339.9).
January-June 2015 (1-6/2014)
-- Order inflow was EUR 809.2 million (1,014.8)
-- Net sales totalled EUR 781.8 million (789.8)
-- Operating profit was EUR -2.4 million (-2.5) or -0.3% (-0.3) of net sales.
-- Profit for the period was EUR -14.7 million (8.3). Profit for the period in
continuing operations was EUR -14.7 million (-14.9).
-- Earnings per share were EUR -0.90 (0.20). Earnings per share in continuing
operations were EUR -0.90 (-0.92).
-- Cash flow from operations totalled EUR 26.0 million (-128.1).
Profit guidance for 2015
The profit guidance for 2015 is intact. Lemminkäinen estimates that its net
sales in 2015 will not increase as compared to 2014 (EUR 2,044.5 million).
Operating profit (IFRS) in 2015 is expected to improve as compared to 2014 (EUR
36.3 million).
Key figures, 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
IFRS 2015 2014 Q2/15 2015 2014 H1/15 vs. 2014
vs. H1/14
Q2/14
--------------------------------------------------------------------------------
Net sales M€ 492.1 510.5 -18.4 781.8 789.8 -8.0 2,044.
5
--------------------------------------------------------------------------------
Paving M€ 258.8 243.8 15.0 323.2 303.8 19.4 907.5
--------------------------------------------------------------------------------
Infra projects M€ 65.7 75.5 -9.8 124.6 135.1 -10.5 286.0
--------------------------------------------------------------------------------
Building M€ 127.0 135.2 -8.2 258.3 251.1 7.2 539.0
construction,
Finland
--------------------------------------------------------------------------------
Russian M€ 17.4 34.1 -16.7 36.0 50.1 -14.1 196.1
operations
--------------------------------------------------------------------------------
Other items M€ 23.3 21.9 1.4 39.7 49.6 -9.9 115.9
--------------------------------------------------------------------------------
Operating profit M€ 15.6 14.8 0.8 -2.4 -2.5 0.1 36.3
--------------------------------------------------------------------------------
Paving M€ 15.2 14.3 0.9 -11.8 -5.8 -6.0 32.2
--------------------------------------------------------------------------------
Infra projects M€ 4.3 -0.3 4.6 5.1 1.6 3.5 7.2
--------------------------------------------------------------------------------
Building M€ -3.4 5.9 -9.3 3.8 12.0 -8.2 9.3
construction,
Finland
--------------------------------------------------------------------------------
Russian M€ 1.4 0.4 1.0 2.5 -1.0 3.5 19.7
operations
--------------------------------------------------------------------------------
Other items M€ -1.9 -5.5 3.6 -2.1 -9.2 7.1 -32.2
--------------------------------------------------------------------------------
Operating margin % 3.2 2.9 -0.3 -0.3 1.8
--------------------------------------------------------------------------------
Paving % 5.9 5.9 -3.6 -1.9 3.5
--------------------------------------------------------------------------------
Infra projects % 6.6 -0.4 4.1 1.2 2.5
--------------------------------------------------------------------------------
Building % -2.7 4.4 1.5 4.8 1.7
construction,
Finland
--------------------------------------------------------------------------------
Russian % 8.1 1.2 7.0 -2.0 10.1
operations
--------------------------------------------------------------------------------
Pre-tax profit M€ 10.2 7.3 2.9 -13.7 -17.1 3.4 -1.7
--------------------------------------------------------------------------------
Profit from M€ 5.0 5.3 -0.3 -14.7 -14.9 0.2 -5.0
continuing
operations
--------------------------------------------------------------------------------
Profit for the M€ 5.0 28.2 -23.2 -14.7 8.3 -23.0 18.1
period
--------------------------------------------------------------------------------
Earnings per € 0.05 0.13 -0.08 -0.90 -0.92 0.02 -0.68
share,
continuing
operations
--------------------------------------------------------------------------------
Earnings per € 0.05 1.24 -1.19 -0.90 0.20 -1.10 0.40
share for the
period
--------------------------------------------------------------------------------
Cash flow from M€ 23.5 -25.5 49.0 26.0 -128.1 154.1 -48.4
operations1)
--------------------------------------------------------------------------------
1) 1-6/2014 and 1-12/2014: Cash flow from operations includes EUR 60 million of
damages paid related to asphalt cartel.
Key figures, IFRS 30 June 30 June Change 31 Change 31
2015 2014 Q2/15 March Q1/15 vs. December
vs. 2015 Q2/15 2014
Q2/14
--------------------------------------------------------------------------------
Order book, M€ 1,667.1 2,086.8 -419.7 1,617.3 49.8 1,456.1
continuing
operations
--------------------------------------------------------------------------------
Operating capital M€ 547.0 697.0 -150.0 554.4 -7.4 590.4
--------------------------------------------------------------------------------
Balance sheet M€ 1,292.3 1,463.4 -171.1 1,206.4 85.9 1,257.8
total
--------------------------------------------------------------------------------
Interest-bearing M€ 211.7 339.9 -128.2 198.7 13.0 213.6
net debt
--------------------------------------------------------------------------------
Equity ratio1) % 33.1 32.1 37.9 37.1
--------------------------------------------------------------------------------
Gearing2) % 57.2 85.4 50.5 51.8
--------------------------------------------------------------------------------
Return on % 10.9 0.2 13.2 13.5
investment,
rolling 12
months
--------------------------------------------------------------------------------
1) Equity ratio, if hybrid bond was treated as debt: 6/2015: 23.1%, 6/2014:
20.9% and 12/2014: 24.6%.
2) Gearing, if hybrid bond was treated as debt: 6/2015: 125.2%, 6/2014: 184.4%
and 12/2014: 128.4%.
The figures in the table include assets held for sale.
President and CEO Casimir Lindholm:
“Lemminkäinen's net sales and operating profit in the second quarter were on a
par with the previous year,” says Casimir Lindholm, President and CEO. “Our
result improved in all business segments except Building construction, Finland.
The segment's profitability was weakened by expenses worth approximately EUR 5
million, such as losses from plot sales and provisions related to warranty
repairs. In the Paving segment, the decreasing price of bitumen has led to
higher volume but lower unit prices. In Infra projects, our result developed
favourably. We see the market situation strong in infrastructure construction
in our main markets. Nevertheless, we must continue to improve our operational
efficiency in a market situation where the intense competition affects the
contract prices also in Finland.”
“Our order book was on a lower level than last year. The order book declined
primarily in Russia, where we have not started any new residential projects. In
infra projects, we won new contracts in June totalling EUR 80 million that are
not included in the order book for the review period.”
“We have continued the sales of non-core businesses and assets in line with our
strategy. During the review period and after it, we withdrew from the building
construction business in Sweden and the road maintenance business in Norway.
These measures had a negative impact on the second quarter result totalling
approximately EUR 3 million. We have also continued to sell non-strategic plots
and mineral aggregate areas. These actions support our intention to optimise
our capital efficiency and to improve our long-term results.”
“Our cash flow from operations was positive during the first and second
quarter. Our operating capital and interest-bearing debt are on a substantially
lower level than in the previous year. We have achieved this by reducing
investments, improving the efficiency of our invoicing and adjusting the
housing production to meet the lower demand. During the review period, we
completed the partial repurchase of our hybrid bond by repurchasing notes to a
nominal amount of EUR 27.1 million in exchange for cash. Our strengthened
balance sheet and the successfully implemented Deliver 2014 cost savings
programme mean that we are well positioned to continuously develop our business
and improve our competitive position,” Lindholm explains.
Market outlook
The total volume of construction in Finland in 2015 is likely to remain at the
previous year's level. Current infrastructure projects will not turn the volume
of infrastructure construction to growth. Renovation in building construction
continues to grow, but new residential construction is expected to decline by a
few per cent from the previous year. The number of new residential startups is
estimated to be 23,500 units (2014: 24,500). Paving volumes are growing, but
the falling price of bitumen restricts the growth in net sales. In Sweden and
Norway, infrastructure construction is supported by major road projects and
investments in the repair and replacement of energy production infrastructure.
In Russia, housing demand in comfort-class has decreased somewhat compared to
the previous year. In the Baltic countries, the demand for infrastructure
construction has remained stable. (Source: Euroconstruct June/2015).
Briefing
A Finnish-language briefing for analysts and the media will be held at 10:00
a.m. on Wednesday, 29 July 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. Presentation material can be
found in Finnish and English at the company's website,
www.lemminkainen.com/investors.
Financial reporting in 2015
In 2015 the Interim Reports will be published as follows:
5 February 2015 Financial statements bulletin 2014
29 April 2015 Interim Report 1 Jan - 31 March 2015
29 July 2015 Interim Report 1 Jan - 30 June 2015
30 October 2015 Interim Report 1 Jan - 30 Sep 2015
LEMMINKÄINEN CORPORATION
Corporate Communications
ADDITIONAL INFORMATION:
Casimir Lindholm, President and CEO, tel. +358 2071 53304
Ilkka Salonen, CFO, tel. +358 2071 53304
Katri Sundström, Head of Investor Relations, tel. +358 2071 54813
DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
www.lemminkainen.com
Together with our customers we create conditions that make living, working and
travelling functional, safe and healthy. We operate in Northern Europe and
employ about 5,600 professionals. In 2014, our net sales were about EUR 2.0
billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic
Exchange Helsinki. www.lemminkainen.com
ATTACHMENT: Interim Report Q2/2015
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