Second Quarter 2015
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Sales revenue increased by 9 percent to SEK 1,907 m (1,757), of which Products & Solutions improved to SEK 1,699 m (1,545) and Building Systems amounted to SEK 208 m (212). Adjusted for currency and structure, sales revenue for the Group amounted to 3 percent.
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Operating profit (EBIT) amounted to SEK 110 m (125), excluding one-off items of SEK 0 m (-1), of which Products & Solutions improved to SEK 132 m (120) and Building Systems amounted to SEK -3 m (16). Including one-off items, operating profit (EBIT) for the Group amounted to SEK 110 m (124).
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The operating margin (EBIT), excluding one-off items, amounted to 5.8 percent (7.1). Products & Solutions 7.8 percent (7.8) and Building Systems -1.4 percent (7.5).
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The after-tax result amounted to SEK 68 m (82).
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Earnings per share amounted to 0.89 (1.07).
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Cash flow from operating activities improved to SEK 160 m (88).
January-June 2015
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Sales revenue increased by 10 percent to SEK 3,601 m (3,263), of which Products & Solutions improved to SEK 3,227 m (2,870) and Building Systems amounted to SEK 374 m (393). Adjusted for currency and structure, sales revenue for the Group amounted to 4 percent.
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Operating profit (EBIT) amounted to SEK 164 m (185), excluding one-off items of SEK 0 m (-4), of which Products & Solutions improved to SEK 205 m (191) and Building Systems amounted to SEK -8 m (13). Including one-off items, operating profit (EBIT) for the Group amounted to SEK 164 m (181).
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The operating margin (EBIT), excluding one-off items, amounted to 4.6 percent (5.7). Products & Solutions 6.4 percent (6.7) and Building Systems -2.1 percent (3.3).
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The after-tax result amounted to SEK 96 m (96).
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Earnings per share amounted to SEK 1.26 (1.26).
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Cash flow from operating activities improved to SEK 77 m (-138).
Lindab's President and CEO, Anders Berg, commented:
Looking back at the last twelve months there is no doubt that Lindab is now transforming according to our strategy. We cannot stand still - we need to evolve. Standing still means being left behind. Our ambition is to make good, grow and generate profits, which is the purpose of our new strategy. During the quarter we have had full focus on the three recent acquisitions; MP3, IMP Klima and Nather. The integration has started and is going according to plan in all processes. At the same time, we deliver a continued growth of 10 percent in the Products & Solutions segment, while maintaining operating margin and hence increasing the operating profit from SEK 120 m last year to SEK 132 m this year, with a clearly improved cash flow.
As a further step in executing our strategy, we presented the plans for our first distribution centre in May. Best described as a paradigm shift in our distribution model, the distribution centre will improve our customer offering, our productivity and working capital. During the quarter we also implemented the Group's ERP-system in France and Switzerland, causing big challenges in the local businesses. Towards the end of June the situation was back to normal, which shows that developing standardised processes is the way to go.
The efficiency measures we have taken for our production structure are well underway and will be finalised at the beginning of the third quarter, according to plan. Our new organisation with overall responsibility from purchasing to delivery provides transparency in our value flows which will contribute to further development.
During the second quarter we also communicated that we are conducting a full internal review of fraudulent activities in the Hungarian business unit, Lindab Kft. This reaffirms our zero tolerance towards this type of activities.
Building Systems, which operates under the Astron brand, is facing continued and significant challenges. The market situation in Russia remains tough, where the business climate for investing in pre-engineered steel buildings within segments such as logistics, warehousing, production and trading is very weak. Obviously, a SEK 19 m decrease in the result compared to last year is a major setback. At the same time, our strategic initiatives to diversify the business model while preserving our market and production presence in Russia is a long-term effort. We are currently evaluating further initiatives for how to increase profitability in view of a continued weak market outlook for Russia.
Costs resulting from strategic activities, acquisitions and ongoing internal review of fraudulent activities in the Hungarian business unit have affected the Group's operating profit by approximately SEK 10 m during the quarter.
End
The information here is that which Lindab International AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
Contacts:
LINDAB
Anders Berg, CEO
Email: anders.berg@lindab.com
Mobile: +46 (0) 70 35 89155
Linda Kjellgren, Acting CFO
Email: linda.kjellgren@lindab.com
Mobile: +46 (0)70 51 77867
Lindab - A Ventilation and Building Products company:
Lindab develops, manufactures, markets and distributes products and system solutions primarily in steel 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 revenue of SEK 7,003 m in 2014 and is established in 32 countries with approximately 4,600 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2014 the Nordic market accounted for 46 percent, the CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 21 percent, Western Europe for 30 percent and other markets for 3 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Mid Cap. For more information visit www.lindabgroup.com
