Lemminkäinen - Financial Statement Release

Lemminkäinen financial statement bulletin 2011

LEMMINKÄINEN OYJ           FINANCIAL STATEMENT BULLETIN           9 FEBRUARY AT
8 A.M. 


LEMMINKÄINEN FINANCIAL STATEMENT BULLETIN 2011: Stronger competitiveness,
marked improvements in profitability 

Highlights for October-December 2011, compared with the corresponding period of
the previous year: In line with expectations, considerable income was
recognized for own residential development during the last quarter. 

- Net sales grew in October-December by 31%, amounting to EUR 659.0 million
(503.6). 
- The net sales of operations outside Finland grew by 82% and amounted to EUR
231.2 million (127.0). 
- The order book grew by 14% and was EUR 1,400.4 million (1,226.4) at the end
of 2011. 
- Operating profit improved to EUR 9.2 million (5.3). Operating margin was 1.4%
(1.1). 
- Pre-tax profit amounted to EUR 3.0 million (0.1).
- Earnings per share were EUR -0.03 (-0.14).

Highlights from 2011 compared to the previous year: Financial results improved
markedly; particularly for infrastructure construction, the year was excellent. 

- Net sales grew in by 24%, amounting to EUR 2,274.1 million (1,829.6).
- The net sales for operations outside Finland grew by 44% and amounted to EUR
780.3 million (543.5). 
- Operating profit improved and amounted to EUR 53.5 million (29.6). Operating
margin was 2.4% (1.6). 
- Pre-tax profit amounted to EUR 34.6 million (7.6).
- Earnings per share were EUR 1.77 (0.02).
- Balance sheet total at the end of the reporting period was EUR 1,242.8
million (1,062.0), and interest-bearing net debt amounted to EUR 401.2   
million (349,2). 
- The Board of Directors proposes a dividend of EUR 0.50 per share (0.50).
- Operating profit and pre-tax profit for 2011 do not include the EUR 15.3
million impact of the sale of the roofing business. 
- Earnings for the review period are improved by EUR 11.0 million in negative
goodwill from the Mesta Industri AS acquisition 



Key figures, IFRS,            10-12/  10-12/  Change    1-12/    1-12/    Change
EUR million                     2011    2010             2011     2010          
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales                      659.0   503.6    31 %  2,274.1  1,829.6      24 %
- of which operations          231.2   127.0    82 %    780.3    543.5      44 %
 outside Finland                                                                
Operating profit                 9.2     5.3    74 %     53.5     29.6      81 %
Operating margin %               1.4     1.1              2.4      1.6          
Pre-tax profit                   3.0     0.1             34.6      7.6      over
                                                                            100%
Earnings from                           -0.5             11.3     -0.6          
discontinued operations                                                         
Result for the financial        -0.1    -1.9             35.6      1.2      over
 year                                                                       100%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR        -0.03   -0.14    79 %     1.77     0.02      over
                                                                            100%
Cash flow from business        -20.8    45.1             -7.1    -37.2      81 %
 operations                                                                     



Key figures, EUR million                      31.12.2011  31.12.2010  Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Order book                                       1,400.4     1,226.4    14 %
-        of which unsold                           206.3       135.3    53 %
-        of which operations outside Finland       482.5       294.3    64 %
Balance sheet total                              1,242.8     1,062.0    17 %
Interest-bearing net debt                          401.2       349.2    15 %
Equity ratio, %                                     30.8        35.0        
Gearing, %                                         114.5       105.7        
Return on investment, %                             10.8         7.0        



President & CEO Timo Kohtamäki:

Timo Kohtamäki, President & CEO of Lemminkäinen, is satisfied with the
turnabout accomplished last year: "Our net sales, result and order book grew,
which means we are more competitive than before. Last year, we improved our
production efficiency, developed our procurement operations, and initiated a
EUR 50 million efficiency programme. We already have visible results, even
though the full extent of the improvements will materialise in the years to
come."

The competitiveness has most clearly improved in Lemminkäinen's infrastructure
construction, where traditional asphalt and mineral aggregates operations are
now complemented by strong expertise in the areas of rock and foundation
engineering. "Despite the rise in the cost of raw materials, infrastructure
construction reached a significantly improved result. Business operations in
Denmark and Norway, in particular, had a strong year", says Kohtamäki. "In
residential construction, too, sales were steady all through the year and
results were good."

In 2012, Lemminkäinen seeks to improve its profitability and strengthen its
balance sheet. "The focus of our business activities will move towards the
segments with better profitability - for example, to our own residential
construction in Finland and St. Petersburg. Maintenance and servicing for
technical building systems will also be bolstered. In less profitable business
areas, we will look for ways to cut costs and improve the efficiency of our
operations. To further strengthen our balance sheet, we have paid special
attention to working capital management and optimisation. Our target is to
release approximately EUR 100 million of net working capital by the end of
2013," outlines Kohtamäki. 

Profit guidance realisation in 2011:

In late 2010, Lemminkäinen estimated that its net sales in 2011 would increase
and that its pre-tax profit would clearly improve on 2010. The guidance was
kept intact throughout the year. In 2011, the net sales of Lemminkäinen grew by
24%, and the company's pre-tax profit grew nearly five-fold compared to the
previous year. 

Profit guidance for 2012:

Lemminkäinen estimates that in 2012, its net sales will remain on the same
level as in 2011, and that its pre-tax profit will improve on 2011. This
company's estimate of its net sales and profitability development is based on
the year-on-year growth in the order book and its margins.  The guidance is
also based on the assumption that the market situation will not deteriorate
considerably from late 2011. 

Market outlook:

In 2012, the total volume of construction in Finland is estimated to remain at
the level of 2011. The order book for construction companies was relatively
good in the beginning of 2012. The uncertain financial outlook may, however,
delay the start of new projects. Regional differences will be more prominent,
and construction is estimated to be busier in the Helsinki metropolitan area
and in growth centres than in other regions of the country.  The volume of
infrastructure construction in Sweden, Norway and Denmark is expected to grow
by 3-8 per cent in 2012. The need for new residential units in St Petersburg,
Russia is still great. 

Briefing

A Finnish-language briefing for analysts and the media will be held at 2.00
p.m. on Thursday, 9 February at Lemminkäinen's head office. The street address
is Salmisaarenaukio 2, Helsinki, Finland. The financial statement bulletin will
be presented by President & CEO Timo Kohtamäki. Presentation material on the
financial statement bulletin is available in Finnish and English on the
Company's website, www.lemminkainen.com. 

Annual General Meeting 2012

The date for Lemminkäinen's Annual General Meeting has changed: Lemminkäinen
Corporation's Annual General Meeting for 2012 will be held on Monday, 2 April
2012 at 2:00 p.m. Each shareholder who is registered on 21 March 2012 in the
shareholder register of the Company maintained by Euroclear Finland Ltd has the
right to participate in the General Meeting. For more information on
Lemminkäinen's Annual General Meeting and registration for the meeting, visit
the company web pages at www.lemminkainen.com. 

Financial reporting for 2012

In 2012, Lemminkäinen Corporation will release one financial statement bulletin
and three interim reports as follows: 

9 February 2012 - Financial statement bulletin 2011
3 May 2012 - Interim report, January - March 2012
2 August 2012 - Interim report, January - June 2012
1 November 2012 - Interim report, January - September 2012

Lemminkäinen Corporation's financial statement bulletin for 2011 is available
in its entirety as an appendix to this bulletin. 

LEMMINKÄINEN CORPORATION
Corporate Communications

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

APPENDICES:
Financial statement bulletin 2011
Tabulated sections of the financial statement bulletin.

DISTRIBUTION:
NASDAQ OMX Helsinki
key media
www.lemminkainen.com

Lemminkäinen Group operates in all areas of the construction sector. The
Group's business sectors are building construction, infrastructure
construction, technical building services and international operations. Net
sales in 2011 were about EUR 2.2 billion, of which international operations
accounted for roughly a quarter. The Group employs an average of 8,400 people.
Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange
Helsinki. www.lemminkainen.com

Bifogade filer:

Lemminkainen financial statement bulletin_2011_PDF_en.pdf