2014-10-29 07:00:02 CET
2014-10-29 07:00:08 CET
REGULATED INFORMATION
Lemminkäinen - Interim report (Q1 and Q3)
Lemminkäinen Interim Report 1 Jan–30 Sep 2014: Turnaround is proceeding as planned
LEMMINKÄINEN CORPORATION INTERIM REPORT 29 OCTOBER 2014 AT 8:00 A.M.
LEMMINKÄINEN INTERIM REPORT 1 JAN-30 SEP 2014: TURNAROUND IS PROCEEDING AS
PLANNED
January-September 2014 (1-9/2013)
-- Net sales totalled EUR 1,436.2 million (1,440.1). Adjusted for currency
effects, net sales increased by 3%.
-- At the end of the period, the order book stood at EUR 1,910.9 million
(1,880.1).
-- Operating profit was EUR 36.2 million (13.7), or 2.5% (1.0) of net sales.
-- Earnings per share were EUR 0.81 (-0.61).
-- Cash flow from operations totalled EUR -46.9 million (30.2).
-- Interest-bearing net debt at the end of the period was EUR 233.5 million
(304.4)
-- The equity ratio stood at 33.0% (29.2) and gearing at 53.7% (74.3).
July-September 2014 (7-9/2013)
-- Net sales totalled EUR 646.4 million (704.1). Adjusted for currency
effects, net sales decreased by 6%.
-- Order inflow in the quarter was EUR 389.4 million (538.3)
-- Operating profit was EUR 38.7 million (62.5), or 6.0% (8.9) of net sales.
-- Earnings per share were EUR 0.62 (2.02).
-- Cash flow from operations totalled EUR 80.0 million (108.5).
Key figures, IFRS 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2014 2013 2014 2013 2013
Net sales M€ 646.4 704.1 -57.7 1,436.2 1,440.1 -3.9 2,020.1
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Operating profit, M€ 38.7 62.5 -23.8 36.2 13.7 22.5 -3.9
excluding
non-rec. items
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% net sales % 6.0 8.9 2.5 1.0 -0.2
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Operating profit M€ 38.7 62.5 -23.8 36.2 13.7 22.5 -89.31)
--------------------------------------------------------------------------------
Pre-tax profit M€ 23.2 54.7 -31.5 6.1 -5.8 11.9 -116.11)
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Profit from M€ 16.1 41.8 -25.7 1.2 -5.6 6.8 -96.21)
continuing
operations
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Profit from M€ 0.1 -0.6 0.7 23.3 -2.1 25.4 2.7
discontinued
operations
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Profit for the M€ 16.2 41.2 -25.0 24.4 -7.7 32.1 -93.51)
period
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Earnings per € 0.62 2.05 -1.43 -0.26 -0.50 0.24 -5.19
share, continuing
operations
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Earnings per € 0.00 -0.03 0.03 1.07 -0.11 1.18 0.14
share,
discontinued
operations
--------------------------------------------------------------------------------
Earnings per share € 0.62 2.02 -1.40 0.81 -0.61 1.42 -5.062)
for the period
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Cash flow from M€ 80.0 108.5 -46.93) 30.2 8.3
operations
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1) Includes non-recurring items: 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 19.8 million
2) Includes non-recurring items: The District Court's decision on damages
related to the asphalt cartel, EUR -3.35 per share, and write-downs mainly
related to commercial properties, EUR -1.01 per share
3) Includes the payment of EUR 60 million in damages related to asphalt cartel
paid on January 2014.
Key figures, IFRS 30 30 Change 31
September September December
2014 2013 2013
Order book, continuing operations M€ 1,910.9 1,880.1 30.8 1,733.2
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Balance sheet total M€ 1,543.7 1,632.0 -88.3 1,342.7
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Interest-bearing net debt M€ 233.5 304.4 -70.9 326.5
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Equity ratio % 33.0 29.2 27.3
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Gearing % 53.7 74.3 100.8
--------------------------------------------------------------------------------
Return on investment, rolling 12 % -2.3 5.8 -9.4
months1)
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1) Includes discontinued operations.
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, net sales were EUR 2,020.1 million and operating
profit excluding non-recurring items was EUR -3.9 million.
Casimir Lindholm, President and CEO:
“Lemminkäinen's turnaround is proceeding as planned. Our financial condition is
already better than it was at the start of the year, thus creating a solid
foundation for further development. In September, we conducted a successful EUR
30 million rights offering, for which I would like to thank all of our
shareholders. Our interest-bearing net debt is clearly lower than at the end of
last year, and the bond issued in the spring extended our debt maturity. To
strengthen the balance sheet, we will continue the divestment of non-strategic
assets and operations. By improving our operating efficiency, we have managed
to release approximately EUR 30 million of working capital during the summer
and autumn,” says Casimir Lindholm, Lemminkäinen's President and CEO.
“In Norway, we have got our operations back on the profitability track. The
operating model has been changed, and particular attention has been paid to the
tendering practices and wintertime planning, for instance. The efficiency
measures in Russia have also had the desired effect. In addition, the demand
for apartments in our two projects in the St Petersburg city centre has
continued at a good level, which does not necessarily describe the Russian
market situation as a whole. Thanks to the efficiency measures taken, the Group
cost structure at the end of the year will be about EUR 10 million less than at
the beginning of the year. Our estimate is that next year our cost structure
will be EUR 30 million lighter - as planned in the Deliver 2014 programme.”
“In Finland, the market continues to be weak, especially in building
construction. The demand for housing has slowed down, and, at the current sales
pace, the number of unsold apartments will increase quickly. We are actively
seeking alternatives to direct consumer sales, and we are also boosting the
sales of completed apartments. At the same time, our order book includes
several long-term projects, such as the infrastructure construction projects of
the Rantaväylä tunnel in Tampere and the West Metro stations. In building
construction, similar projects include the renovation of the Parliament
Building and the Sibelius Academy as well as the school campus of timber to be
built in Pudasjärvi, in northern Finland, with the PPP model.”
“In accordance with our strategy, we are running several improvement
initiatives that aim to increase operational efficiency and project management
as well as to release capital. We expect to see results already during the
first half of next year. I believe that together with our competent personnel
we will turn Lemminkäinen into a more competitive and profitable company,”
Lindholm says.
Market outlook
In Finland, the outlook for new construction is still weak. The demand for
renovation is somewhat higher; however, the industry is very fragmented and the
size of projects varies. The weak economic situation of the public sector,
particularly municipalities, will most likely lower the demand for paving and
road maintenance. On the other hand, the market situation in infrastructure
construction will be supported by current and future projects. In Scandinavia,
the demand for infrastructure construction will be increased by multi-year
national investment programmes as well as needs for renewing energy production.
The growth outlook of the Russian economy remains uncertain, and forecasting
the operating environment is difficult. The declining exchange rate of the
rouble and the possible increase in mortgage interest rates could reduce the
demand for housing in the near future.
Briefing
A Finnish-language briefing for analysts and the media will be held at 10:00
a.m. on Wednesday, 29 October 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 materials can be
found in Finnish and English at the company's website, www.lemminkainen.com.
Financial Reports for 2015
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 Jun 2015
30 October 2015: Interim Report, 1 Jan-30 Sept 2015
LEMMINKÄINEN CORPORATION
Corporate Communications
Additional information:
Casimir Lindholm, President & 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 6,000 professionals. In 2013, 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 Q3/2014
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