2014-02-07 07:00:00 CET
2014-02-07 07:00:07 CET
REGULATED INFORMATION
Lemminkäinen - Financial Statement Release
Lemminkäinen financial statements bulletin 2013
LEMMINKÄINEN CORPORATION FINANCIAL STATEMENTS BULLETIN 7 FEBRUARY 2014
AT 8:00 A.M.
LEMMINKÄINEN FINANCIAL STATEMENTS BULLETIN 2013: Full year losses derived from
non-recurring items and challenges in International operations
October-December 2013 (10-12/2012)
-- Net sales in October-December totalled EUR 639.5 million (668.6).
-- The value of new orders received was EUR 390.7 million (528.5).
-- The operating profit, excluding non-recurring items, stood at EUR -16.3
million (24.0).
The operating margin was -2.5% (3.6).
-- Non-recurring items were expenses from the District Court's decision on
damages related to the asphalt cartel, EUR 65.6 million, and write-downs
mainly related to commercial properties, EUR 20.1 million.
-- Earnings per share were EUR -4.45 (0.28).
-- Earnings per share, excluding non-recurring items mentioned above, were EUR
-0.07 (0.28).
-- Cash flow from operations totalled EUR -22.0 million (19.0).
January-December 2013 (1-12/2012)
-- Net sales in January-December were EUR 2,218.2 million (2,267.6).
-- At the end of the review period, the order book was EUR 1,821.3 million
(1,443.9).
-- Operating profit, excluding non-recurring items, was EUR -5.2 million
(50.4)
-- The operating margin was -0.2% (2.2).
-- Non-recurring items were expenses from the District Court's decision on
damages related to the asphalt cartel, EUR 65.6 million, and write-downs
mainly related to commercial properties, EUR 20.1 million.
-- Earnings per share were EUR -5.06 (2.04).
-- Earnings per share, excluding non-recurring items mentioned above, were EUR
-0.68 (2.04).
-- Cash flow from operations totalled EUR 8.3 million (57.8).
-- The equity ratio stood at 27.3% (37.2) and gearing at 100.8% (62.8).
-- Interest-bearing net debt totalled EUR 326.5 million (277.3).
-- The Board of Directors will propose to the AGM that no dividend will be
paid for the financial year of 2013.
Profit guidance for 2013
In 2013, Lemminkäinen changed its profit guidance three times. Due to the weak
first half of the year, the profit guidance was updated in April and July. In
November, the company gave a profit warning after the District Court's decision
on damages related to the asphalt cartel. The new guidance was: "Net sales in
2013 are expected to be on par with 2012. Result will be clearly negative." In
2013, the net sales were EUR 2 218 million (2 268) and the operating profit
(IFRS) was EUR -91 million (50).
Profit guidance for 2014
Lemminkäinen estimates that its 2014 net sales will be slightly lower than in
2013 but its operating profit will improve clearly on 2013 (excluding
non-recurring items). In 2013 the net sales were EUR 2,218 million and
operating profit excluding non-recurring items was EUR -5 million.
Key figures 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 2013 2012
--------------------------------------------------------------------------------
Net sales MEUR 639.5 668.6 -29.1 2,218.2 2,267.6 -49.4
--------------------------------------------------------------------------------
Operating profit, MEUR -16.3 24.0 -40.3 -5.2 50.4 -55.6
excluding non-recurring
items
--------------------------------------------------------------------------------
Operating margin % -2.5 3.6 -0.2 2.2
--------------------------------------------------------------------------------
Operating profit MEUR -102.0 24.0 -126.0 -90.9 50.4 -141.3
**) **)
--------------------------------------------------------------------------------
Profit for the period MEUR -85.8 9.1 -94.9 -93.5 20.4 -113.9
from continuing **) **)
operations
--------------------------------------------------------------------------------
Profit for the period *) MEUR -85.8 9.3 -95.1 -93.5 44.1 -137.6
**) **)
--------------------------------------------------------------------------------
Earnings per share from EUR -4.45 0.26 -4.71 -5.06 0.83 -5.89
continuing operations ***) ***)
--------------------------------------------------------------------------------
Earnings per share *) EUR -4.45 0.28 -4.73 -5.06 2.04 -7.10
***) ***)
--------------------------------------------------------------------------------
Cash flow from MEUR -22.0 19.0 -41.0 8.3 57.8 -49.5
operations
--------------------------------------------------------------------------------
Key figures
*) Includes discontinued operations.
**) Includes expenses from the District Court's decision on damages related to
the asphalt cartel (EUR 65.6 million) and write-downs mainly related to
commercial properties (EUR 20.1 million).
***) Includes expenses from the District Court's decision on damages related to
the asphalt cartel (EUR -3.35/share) and write-downs mainly related to
commercial properties (EUR -1.03 / share).
Key figures 31 Dec. 2013 31 Dec. 2012 Change
--------------------------------------------------------------------------------
Order book MEUR 1,821.3 1,443.9 377.4
--------------------------------------------------------------------------------
Balance sheet total MEUR 1,342.7 1,303.5 39.2
--------------------------------------------------------------------------------
Interest-bearing net debt MEUR 326.5 277.3 49.2
--------------------------------------------------------------------------------
Equity ratio % 27.3 37.2
--------------------------------------------------------------------------------
Gearing % 100.8 62.8
--------------------------------------------------------------------------------
Return on investment, rolling 12 % -9.4 10.8
months
--------------------------------------------------------------------------------
President & CEO Timo Kohtamäki:"2013 was a difficult year for us," says President and CEO Timo Kohtamäki. "In
the beginning of the year the paving season was delayed due to the prolonged
winter, and in the end of the year we recorded margin decreases from major
projects in Norway, Sweden and Russia. In Norway, several efficiency
improvement measures were carried out during the year, but the operations in
Norway remained unprofitable. The result was further weakened by large
non-recurring items related to the District Court's decisions on damages in the
asphalt cartel case, write-downs from old commercial property projects as well
as expenses from the divestment of parts of the telecommunications network
business and the efficiency improvement program. Consequently, our operating
profit was negative.""Our efficiency improvement program launched in August has proceeded as
planned: our cost structure is lighter and better adjusted to seasonal
variations. In procurement, the gains were not fully realized in our result due
to intensified competition. In Scandinavia and Russia, the efficiency
improvement measures continue also in 2014. In addition to optimizing the cost
structure, we are focusing on project management and governance in all our
operating countries.""In 2014, our primary focus is to continue to develop operational efficiency,
improve profitability and strengthen our equity ratio. We are, nevertheless,
currently strengthening our resources in demanding infrastructure projects in
Scandinavia. In Russia, we have some 900 apartments under construction. Current
order book in Finland creates a solid platform to develop our business further
in 2014."
Market outlook
In Finland, the overall market situation in construction is estimated to remain
quiet in 2014. The volume of infrastructure construction is expected to
decrease due to the weak economic situation of municipalities and the state.
Demand for new apartments focuses on small apartments in urban growth centres.
Commercial projects are being planned but their launch is uncertain. In Russia,
the demand for apartments is dependent on the exchange rate of the rouble, the
oil price and the general economic situation in Russia. In Sweden, Norway and
Denmark, long-term investment plans targeted at infrastructure construction
will keep the market situation strong in the near future. On the other hand,
the growing infrastructure market attracts Central European construction
companies, which intensifies price competition in the industry.
Briefing
A Finnish-language briefing for analysts and the media will be held at 10:00
a.m. on Friday, 7 February at Lemminkäinen's head office. The street address is
Salmisaarenaukio 2, Helsinki, Finland. Due to CEO Timo Kohtamäki's sick leave,
CFO Robert Öhman will present the Financial statements bulletin. Presentation
materials can be found in Finnish and English at the company's website,
www.lemminkainen.com.
LEMMINKÄINEN CORPORATION
Corporate Communications
ADDITIONAL INFORMATION:
Robert Öhman, CFO
Tel. +358 2071 53515
robert.ohman@lemminkainen.com
Katri Sundström, Vice President, Investor Relations
Tel. +358 2071 54813
katri.sundstrom@lemminkainen.com
APPENDICES:
Financial statement bulletin and tabulated sections of the financial statement
bulletin 2013
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 7,800 experts. In 2013, our net sales were about EUR 2.2 billion.
Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange
Helsinki. www.lemminkainen.com
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