Lindab International AB (publ): Lindab's Interim Report for the fourth quarter and full year 2018

Fourth quarter 2018

• Net sales increased by 9 percent to SEK 2,384 m (2,185), of which organic growth was 5 percent.
• Adjusted¹⁾ operating profit increased by 45 percent to SEK 173 m (119). Adjusted¹⁾ operating margin increased to 7.3 percent (5.4).
• Operating profit amounted to SEK 147 m (109).
• Profit for the period increased by 26 percent to SEK 106 m (84).
• Earnings per share, before and after dilution, increased to SEK 1.38 (1.10).
• Cash flow from operating activities amounted to SEK 238 m (346).

January - December 2018

• Net sales increased by 13 percent to SEK 9,326 m (8,242), of which organic growth was 8 percent.
• Adjusted¹⁾ operating profit increased by 24 percent to SEK 634 m (511). Adjusted¹⁾ operating margin increased to 6.8 percent (6.2).
• Operating profit amounted to SEK 547 m (492).
• Profit for the period increased by 14 percent to SEK 394 m (347).
• Earnings per share, before and after dilution, increased to SEK 5.16 (4.54).
• Cash flow from operating activities improved to SEK 593 m (410).
• Products & Solutions will be divided into two business areas (Ventilation Systems and Profile Systems) and recognised as two separate segments from Q1 2019.
• The Board of Directors proposes a dividend of SEK 1.75 (1.55) per share.

             
     ¹⁾ Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.

Lindab's President and CEO, Ola Ringdahl, comments:

"Lindab's net sales continued to be high in the fourth quarter. Organic sales growth amounted to 5 percent and adjusted operating profit rose to SEK 173 m (119). Implemented price increases combined with more stable raw material prices contributed towards a slight improvement in gross margin during the quarter. Improved profitability continues to be the highest priority in 2019.

Net sales development was positive in Products & Solutions, increasing by 4 percent organically, as simultaneously the adjusted operating margin increased to SEK 183 m (143). Among the larger markets, growth was strong in the Nordics, Germany and Poland. Ventilation Products and Rainwater & Building Products were the main product areas that experienced good growth.

Building Systems had continued good sales growth with net sales increasing to SEK 261 m (226). Adjusted operating profit improved to SEK 0 m (-13). Since this business is project related, net sales and profitability can fluctuate between the quarters. The order intake was weaker in comparison to the same quarter of the previous year, however the backlog was higher at the end of the quarter compared with the same period last year. The turnaround programme has continued according to plan, in order to create sustainable profitability.

During the quarter, an action plan was launched with the aim of improving profitability and efficiency. Among other things, this plan includes the  acceleration of investments in automised production. Furthermore, a new organisational structure was presented. As of 1 January 2019 the current business area Products & Solutions will be divided into two business areas, Ventilation Systems and Profile Systems. The purpose is to create improved transparency and focus on each business area. The external segment reporting will be presented according to this new structure as of Q1 2019.

Sales growth was strong for the full year of 2018, with organic growth of 8 percent. During the second half of the year, profitability was prioritised and we saw an improvement over the period. We will continue to focus on reaching our financial target of an average long term operating margin of 10 percent during a business cycle. Building Systems has delivered according to its turnaround plan and contributed to a positive adjusted operating margin for the full year of 2018."

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This is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 am (CET) on February 13, 2019.

Contact:

LINDAB
Ola Ringdahl, President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00

                                                                                                                                                                   
Malin Samuelsson, CFO
E-mail: malin.samuelsson@lindab.com
Mobile: +46 (0) 701 45 46 85

Lindab in brief:


Lindab develops, manufactures, markets and distributes products and system solutions for simplified construction and improved indoor climate. The products are characterised by their high quality, ease of assembly, energy efficiency, consideration towards the environment and are delivered with high levels of service. Altogether, this increases customer value.

The Group had sales of SEK 9,326 m in 2018 and is established in 32 countries with approximately 5,100 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2018, the Nordic market accounted for 45 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 20 percent and Other markets for 2 percent of total sales.

The share is listed on the Nasdaq Stockholm List, Mid Cap, under the ticker symbol LIAB.