2015-02-05 07:00:00 CET
2015-02-05 07:00:04 CET
REGULATED INFORMATION
Lemminkäinen - Financial Statement Release
Lemminkäinen Financial Statements Bulletin 2014: Stronger balance sheet and better profitability through efficiency measures
LEMMINKÄINEN CORPORATION FINANCIAL STATEMENTS BULLETIN 5 FEBRUARY 2015
AT 8:00 A.M.
LEMMINKÄINEN FINANCIAL STATEMENTS BULLETIN 2014: STRONGER BALANCE SHEET AND
BETTER PROFITABILITY THROUGH EFFICIENCY MEASURES
October-December 2014 (10-12/2013)
-- Net sales totalled EUR 608.3 million (580.0).
-- Operating profit was EUR 0.1 million (-103.0), or 0.0% (-17.8) of net
sales.
-- The impact of currency exchange rate changes on euro-denominated net sales
was EUR -29.3 million and on operating profit EUR -2.7 million
-- Operating profit includes non-recurring items: write-downs related to
assets in the balance sheet worth EUR 7.6 million as well as increase in
provisions in damages related to the asphalt cartel worth EUR 4.9 million
-- Operating profit, excluding the non-recurring items, was EUR 12.6 million
(-17.6), or 2.1% (-3.0) of net sales.
-- Order inflow was EUR 128.6 million (374.9).
-- Profit for the period was EUR -6.3 million (-85.8).
-- Earnings per share were EUR -0.42 (-4.23).
-- Cash flow from operations totalled EUR -7.8 million (-22.0).
January-December 2014 (1-12/2013)
-- Net sales totalled EUR 2,044.5 million (2,020.1).
-- Operating profit was EUR 36.3 million (-89.3), or 1.8% (-4.4) of net sales.
-- The impact of currency exchange rate changes on euro-denominated net sales
was EUR -73.2 million and on operating profit EUR -5.0 million
-- Operating profit includes non-recurring items: write-downs related to
assets in the balance sheet worth EUR 9.6 million as well as increase in
provisions in damages related to the asphalt cartel worth EUR 6.4 million
-- Operating profit, excluding the non-recurring items, was EUR 52.3 million
(-3.9), or 2.6% (-0.2) of net sales.
-- Order inflow in 2014 was EUR 1,527.4 million (1,958.6).
-- At the end of the review period, the order book stood at EUR 1,456.1
million (1,733.2).
-- Profit for the period was EUR 18.1 million (-93.5).
-- Earnings per share were EUR 0.40 (-4.81).
-- Cash flow from operations totalled EUR -54.8 million (8.3). This includes
EUR 60 million damages paid on January.
-- Interest-bearing net debt at the end of the period was EUR 213.6 million
(326.5).
-- The equity ratio stood at 37.1% (27.3) and gearing at 51.8% (100.8).
-- The Board of Directors proposes to the AGM that no dividend will be paid
for 2014.
Profit guidance for 2015
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).
Casimir Lindholm, President and CEO:
“The year 2014 was very challenging for Lemminkäinen. Nevertheless, the
measures taken in the spring have been effective and our turnaround is well
underway. Our main targets are strengthening the balance sheet as well as
improving profitability and competitiveness,” says Casimir Lindholm,
Lemminkäinen President and CEO.
“In the spring, we launched the Deliver 2014 cost savings programme that
focused on the targets mentioned above. The programme enabled us to turn the
result positive in Norway and improved our profitability in Russia.
Unfortunately, the measures taken also resulted in personnel reductions.”
“Our result improved clearly from last year. In Finland, ongoing infra
projects, the paving business and development projects in building construction
in the Helsinki metropolitan area performed well. Despite the uncertainty in
Russia, housing sales was brisk and we completed two large residential projects
in St. Petersburg. The mild weather prolonged the paving season in all our
operating countries.”
“The 5-year bond and the rights offering issued in 2014 lengthened our debt
maturity and enhanced our solvency. We have strengthened our balance sheet by
divesting individual non-core assets and operations. In addition, the
divestment of technical building services business in the spring clarified our
business portfolio. Through these actions, our liquidity and solvency have
improved.”
“We have a good starting point for 2015, although the market situation remains
challenging. We aim to enhance our competitiveness through operational
efficiency measures. In addition, we focus on project and risk management,
wintertime planning and fleet optimisation, among others. This will create a
solid foundation to strengthen our competitive position in infrastructure
construction in Northern Europe.”
Key figures, IFRS 10-12/2 10-12/2 Change 1-12/20 1-12/20 Change
014 013 14 13
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Net sales M€ 608.3 580.0 28.3 2,044.5 2,020.1 24.4
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Infrastructure M€ 370.0 340.1 29.9 1,339.0 1,279.2 59.8
construction
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Building construction, M€ 165.9 204.2 -38.3 539.0 592.9 -53.9
Finland
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Russian operations M€ 82.0 40.9 41.1 196.1 164.5 31.6
--------------------------------------------------------------------------------
Other items M€ -9.6 -5.2 -4.4 -29.6 -16.4 -13.2
--------------------------------------------------------------------------------
Operating profit M€ 0.1 -103.0 103.1 36.3 -89.3 125.6
--------------------------------------------------------------------------------
Infrastructure M€ 4.5 -26.0 30.5 38.0 -13.1 51.1
construction
--------------------------------------------------------------------------------
Building construction, M€ -2.9 -4.6 1.7 9.3 5.0 4.3
Finland
--------------------------------------------------------------------------------
Russian operations M€ 10.2 -2.7 12.9 19.7 -0.3 20.0
--------------------------------------------------------------------------------
Other items M€ -11.7 -69.7 58.0 -30.8 -80.8 50.0
--------------------------------------------------------------------------------
Operating profit, excl. M€ 12.6 -17.6 30.2 52.3 -3.9 56.2
NR-items1)
--------------------------------------------------------------------------------
Operating margin % 0.0 -17.8 1.8 -4.4
--------------------------------------------------------------------------------
Infrastructure % 1.2 -7.6 2.8 -1.0
construction
--------------------------------------------------------------------------------
Building construction, % -1.8 -2.3 1.7 0.8
Finland
--------------------------------------------------------------------------------
Russian operations % 12.4 -6.6 10.1 -0.2
--------------------------------------------------------------------------------
Operating margin, excl. % 2,1 -3,0 2,6 -0,2
NR-items1)
--------------------------------------------------------------------------------
Pre-tax profit M€ -7.7 -110.3 102.6 -1.7 -116.1 114.4
--------------------------------------------------------------------------------
Profit from continuing M€ -6.2 -90.6 84.4 -5.0 -96.2 91.2
operations
--------------------------------------------------------------------------------
Profit for the period M€ -6.3 -85.8 79.5 18.1 -93.5 111.6
--------------------------------------------------------------------------------
Earnings per share, € -0.41 -4.46 4.05 -0.68 -4.94 4.26
continuing operations
--------------------------------------------------------------------------------
Earnings per share for € -0.42 -4.23 3.81 0.40 -4.81 5.21
the period
--------------------------------------------------------------------------------
Cash flow from M€ -7.8 -22.0 14.2 -54.8 8.3 -63.1
operations2)
--------------------------------------------------------------------------------
1) Non-recurring items included in IFRS operating profit are:
10-12/2014: Total EUR 12.5 million (EUR 7.6 million write-downs and EUR 4.9
million increase in provisions related to asphalt cartel)
10-12/2013: Total EUR 85.4 million (EUR 19.8 million write-downs and EUR 65.6
million damages paid and provisions related to asphalt cartel)
1-12/2014: Total EUR 16.0 million (EUR 9.6 million write-downs and EUR 6.4
million increase in provisions related to asphalt cartel)
1-12/2013: Total EUR 85.4 million (EUR 19.8 million write-downs and EUR 65.6
million damages paid and provisions related to asphalt cartel)
2) 1-12/2014 cash flow from operations includes EUR 60 million of damages paid
related to asphalt cartel
Key figures, IFRS 31 31 Change 31 30 Change
December December December Septembe
2014 2013 2014 r 2014
--------------------------------------------------------------------------------
Order book, M€ 1,456.1 1,733.2 -277.1 1,456.1 1,910.9 -454.8
continuing
operations
--------------------------------------------------------------------------------
Balance sheet total M€ 1,257.8 1,342.7 -84.9 1,257.8 1,543.7 -285.9
--------------------------------------------------------------------------------
Interest-bearing net M€ 213.6 326.5 -112.9 213.6 233.5 -19.9
debt
--------------------------------------------------------------------------------
Equity ratio % 37.1 27.3 37.1 33.0
--------------------------------------------------------------------------------
Gearing % 51.8 100.8 51.8 53.7
--------------------------------------------------------------------------------
Return on % 13.5 -9.4 13.5 -2.3
investment, rolling
12 months1)
--------------------------------------------------------------------------------
1) Includes discontinued operations.
Market outlook
In Finland, the outlook for new construction is still weak and building
construction is supported by renovation projects, which are less dependent on
the economic cycles. Ongoing urbanisation affects building construction in many
ways. The demand is focused on urban growth centres and especially the Helsinki
metropolitan area. Infrastructure construction will suffer from the cuts in
state and municipality basic road maintenance appropriations and the decrease
in foundation work in building construction. On the other hand, the market
situation is supported by ongoing and future major infra 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 competition for infra projects is intense especially in Sweden
and Norway. The growth outlook for the Russian economy is weak, and forecasting
the operating environment is extremely difficult. The declining exchange rate
of the rouble and the 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 2:00
p.m. on Thursday, 5 February at Lemminkäinen's head office. The street address
is Salmisaarenaukio 2, Helsinki, Finland. Lemminkäinen's President and CEO
Casimir Lindholm will present the Financial Statements Bulletin. Presentation
material can be found in Finnish and English at the company's website,
www.lemminkainen.com/investors.
Financial reporting in 2015
5 February 2015 Financial Statements Bulletin 2014
Week 10 Annual Report 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 54518
Ilkka Salonen, CFO, tel. +358 2071 54518
Kati 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
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