LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 28 APRIL 2016 AT 8:00 A.M.
LEMMINKÄINEN INTERIM REPORT 1 JANUARY - 31 MARCH 2016
January–March 2016 (1–3/2015)
• Order inflow was EUR 400.5 million (386.2).
• Order book at the end of the period amounted to EUR 1,449.0 million
(1,617.3). The comparable order book
for 31 March 2015 was EUR 1,338 million 1).
• Net sales totalled EUR 216.8 million (289.6).
• Operating profit amounted to EUR -31.4 million (-18.1), or -14.5% (-6.2)
of net sales.
• Profit for the period was EUR -27.9 million (-19.6).
• Earnings per share were EUR -1.31 (-0.96).
• Cash flow from operating activities totalled EUR -18.4 million (2.5).
• Equity ratio at the end of the review period was 36.0% (37.9) and
gearing 61.8% (50.5).
• Interest-bearing net debt at the end of the review period was
EUR 186.6 million (198.7).
• During the first quarter, the company carried out the redemption of
the outstanding EUR 43 million of the 2012 issued hybrid bond.
1) The company divested the building construction business in Sweden as well as
the road maintenance business in Norway during Q3/2015. In addition according to
its strategy, the company has not started any new residential development
projects in Russia.
Profit guidance for 2016
The profit guidance for 2016 remains intact. Lemminkäinen estimates that its net
sales in 2016 will be on the level of EUR 1.8 billion. Operating profit (IFRS)
in 2016 is expected to improve as compared to 2015 (EUR 37.3 million).
Key figures, IFRS 1-3/2016 1-3/2015 Change 1-12/2015
Net sales M€ 216.8 289.6 -72.8 1,879.0
Paving M€ 35.8 56.2 -20.4 796.2
Infra projects M€ 61.2 67.1 -5.9 341.4
Building construction, Finland M€ 113.1 131.3 -18.2 537.8
Russian operations M€ 5.8 18.6 -12.8 136.7
Other operations and M€ 0.9 16.4 -15.5 66.8
Group eliminations
Operating profit M€ -31.4 -18.1 -13.3 37.3
Paving M€ -28.2 -24.7 -3.5 19.8
Infra projects M€ -0.6 -1.5 0.9 8.9
Building construction, Finland M€ -0.8 7.3 -8.1 12.9
Russian operations M€ -0.6 1.1 -1.7 2.9
Other operations M€ -1.2 -0.3 -0.9 -7.2
Operating margin % -14.5 -6.2 2.0
Paving % -78.8 -43.9 2.5
Infra projects % -0.9 -2.2 2.6
Building construction, Finland % -0.7 5.5 2.4
Russian operations % -10.1 6.0 2.1
Pre-tax profit M€ -35.3 -23.8 -11.5 16.7
Profit for the period M€ -27.9 -19.6 -8.3 7.2
Earnings per share for the period € -1.31 -0.96 -0.35 -0.15
Cash flow from operating activities M€ -18.4 2.5 -20.9 106.6
Key figures, 31 31 March Change 31 Dec 2015 Change
IFRS March 2015 3/16 3/16 vs. 12/15
2016 vs.
3/15
Order book M€ 1,449.0 1,617.3 1) -168.3 1,180.3 268.7
Operating M€ 450.4 554.4 -104.0 474.8 -24.4
capital
Balance sheet M€ 949.6 1,206.4 -256.8 1,035.5 -85.9
total
Interest M€ 186.6 198.7 -12.1 126.8 59.8
-bearing net
debt
Equity % 36.0 37.9 40.6
ratio 2)
Gearing 3) % 61.8 50.5 33.6
Return on % 3.6 4.5 5.3
capital
employed,
rolling 12
months
1) The figures for the comparison year include the building construction
business in Sweden and the road maintenance business in Norway, both of which
the company divested in Q3/2015.
2) Equity ratio, if hybrid bonds were treated as debt: 3/2016: 27.7%, 3/2015:
24.6% and 12/2015: 28.6%.
3) Gearing, if hybrid bonds were treated as debt: 3/2016: 110.1%, 3/2015: 132.0%
and 12/2015: 89.6%.
President and CEO Casimir Lindholm:
“We continued to improve our financial position during the first quarter of
2016,” says Casimir Lindholm, President and CEO. “Our balance sheet has
strengthened compared to the year-earlier period. Our operating capital was EUR
450 million, a decrease of over EUR 100 million. In addition, we redeemed fully
the outstanding EUR 43 million of our 2012 issued hybrid bond in late March,
which will have a positive impact on our earnings per share.”
“Our operating profit weakened from the year-earlier period. In Paving, our
challenges in Norway continued. In Infra projects, our operating profit
improved. In Building construction, Finland, our year-on-year result declined
due to a lower number of completed residential development projects in the
Helsinki metropolitan area. This year, the majority of our residential
development projects will be completed and recognised towards the end of the
year. However, our housing sales both in Finland and Russia were solid. In
Russia, the number of unsold completed apartments was 14 at the end of the
quarter.”
“Our order inflow was strong during the first quarter. In infra projects, we won
several new contracts in Finland. The Finnish Government’s decisions regarding
transport projects are expected to positively influence the outlook for both
paving and infra projects in the coming years. Our focus however remains on
seeking growth from Sweden and Norway where the market holds a lot of potential
as planned infrastructure development programmes extend over governmental
election cycles.”
“In line with our strategy, we are gradually shifting from balance sheet
strengthening to operational efficiency and profitable growth in selected
business areas. This year, our focus will be on step by step improving our
operational result and competiveness in all our operations while maintaining a
moderate risk level.”
Briefing
A Finnish-language briefing for analysts and the media will be held at 12:00
noon on Thursday 28 April 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. The presentation material can be found
in Finnish and English at the company’s website, www.lemminkainen.com/investors.
Financial reporting in 2016
In 2016, financial reports are published as follows:
4 February 2016 Financial Statements Bulletin 2015
Week 9 Annual Report 2015
28 April 2016 Interim Report 1 Jan – 31 March 2016
28 July 2016 Interim Report 1 Jan – 30 June 2016
27 October 2016 Interim Report 1 Jan – 30 Sep 2016
LEMMINKÄINEN CORPORATION
Corporate Communications
ADDITIONAL INFORMATION:
Casimir Lindholm, President and CEO, tel. +358 2071 53304
Ilkka Salonen, CFO, tel. +358 2071 53304
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.lemminkainen.com
Lemminkäinen is an expert in complex infrastructure construction and building
construction in Northern Europe and one of the largest paving companies in its
market. Together with our customers and 4,800 professionals we employ, we build
a sustainable society. In 2015, our net sales were EUR 1.9 billion. Lemminkäinen
Corporation’s share is quoted on Nasdaq Helsinki Ltd. www.lemminkainen.com
ATTACHMENT: Interim Report 1 - 3/2016
