LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 29 JULY 2016 AT 8:00 A.M.
Lemminkäinen Interim Report 1 January - 30 June 2016
April–June 2016 (4–6/2015)
• Order inflow was EUR 382.8 million (423.0).
• Order book at the end of the period amounted to EUR 1,495.7 million (1,667.1).
The comparable order book for 30 June 2015 was EUR 1,351.7 million 1).
• Net sales totalled EUR 457.1 million (492.1).
• Operating profit amounted to EUR 21.2 million (15.6), or 4.6% (3.2) of net
sales.
• Profit for the period was EUR 12.3 million (5.0).
• Earnings per share were EUR 0.48 (0.05).
• Cash flow from operating activities totalled EUR 25.6 million (23.5).
• Equity ratio at the end of the review period was 33.8% (33.1) and gearing
52.2% (57.2).
• Interest-bearing net debt at the end of the review period was EUR 165.2
million (211.7).
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.
January–June 2016 (1–6/2015)
• Order inflow was EUR 783.3 million (809.2).
• Net sales totalled EUR 673.8 million (781.8).
• Operating profit amounted to EUR -10.2 million (-2.4), or -1.5% (-0.3) of net
sales.
• Profit for the period was EUR -15.6 million (-14.7).
• Earnings per share were EUR -0.83 (-0.90).
• Cash flow from operating activities totalled EUR 7.2 million (26.0).
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, 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
IFRS 2016 2015 2016 2015 2015
Net sales M€ 457.1 492.1 -35.0 673.8 781.8 -108.0 1,879.0
Paving M€ 225.4 239.7 -14.3 261.2 295.9 -34.7 796.2
Infra
projects M€ 89.6 84.8 4.8 150.7 151.9 -1.2 341.4
Building
construction,
Finland M€ 141.0 127.0 14.0 254.1 258.3 -4.2 537.8
Russian
operations M€ 12.1 17.4 -5.3 17.9 36.0 -18.1 136.7
Other
operations
and Group
eliminations M€ -10.9 23.3 -34.2 -10.1 39.7 -49.8 66.8
Operating
profit M€ 21.2 15.6 5.6 -10.2 -2.4 -7.8 37.3
Paving M€ 17.9 15.0 2.9 -10.4 -9.7 -0.7 19.8
Infra
projects M€ 1.5 4.6 -3.1 1.0 3.1 -2.1 8.9
Building
construction,
Finland M€ 3.7 -3.4 7.1 3.0 3.8 -0.8 12.9
Russian
operations M€ -0.6 1.4 -2.0 -1.2 2.5 -3.7 2.9
Other
operations M€ -1.3 -1.9 0.6 -2.5 -2.1 -0.4 -7.2
Operating
margin % 4.6 3.2 -1.5 -0.3 2.0
Paving % 7.9 6.2 -4.0 -3.3 2.5
Infra
projects % 1.7 5.4 0.7 2.0 2.6
Building
construction,
Finland % 2.6 -2.7 1.2 1.5 2.4
Russian
operations % -5.3 8.1 -6.8 7.0 2.1
Pre-tax profit M€ 16.4 10.2 6.2 -18.9 -13.7 -5.2 16.7
Profit for the
period M€ 12.3 5.0 7.3 -15.6 -14.7 -0.9 7.2
Earnings per
share
for the period € 0.48 0.05 0.43 -0.83 -0.90 0.07 -0.15
Cash flow from
operating
activities M€ 25.6 23.5 2.1 7.2 26.0 -18.8 106.6
Key figures, 30 June 30 June Change 31 Change 31 Dec 2015
IFRS 2016 2015 6/16 March 6/16
4) vs 2016 vs
6/15 3/16
Order book M€ 1,495.7 1,667.1 -171.4 1,449.0 46.7 1,180.3
1)
Operating
capital M€ 446.4 547.0 -100.6 450.4 -4.0 474.8
Balance sheet
total M€ 1,055.5 1,292.3 -236.8 949.6 105.9 1,035.5
Interest
-bearing net
debt M€ 165.2 211.7 -46.5 186.6 -21.4 126.8
Equity
ratio 2) % 33.8 33.1 36.0 40.6
Gearing 3) % 52.2 57.2 61.8 33.6
Return on
capital
employed,
rolling 12
months % 4.6 4.6 3.6 5.3
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. In addition according to its strategy, the
company has not started any new residential development projects in Russia. The
comparable order book for 30 June 2015 was EUR 1,351.7 million.
2) Equity ratio, if hybrid bonds were treated as debt: 6/2016: 26.4%, 6/2015:
23.1% and 12/2015: 28.6%.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. In addition according to
its strategy, the company has not started any new residential development
projects in Russia. The comparable order book for 30 June 2015 was EUR 1,351.7
million.
3) Gearing, if hybrid bonds were treated as debt: 6/2016: 95.0%, 6/2015: 125.2%
and 12/2015: 89.6%.
4) The figures include the effect of non-current assets classified as held for
sale.
President and CEO Casimir Lindholm:
“Our second quarter operating profit improved year-on-year,” says Casimir
Lindholm, President and CEO. “Our operating profit improved in Paving and
Building construction, Finland. In Paving, we have ongoing measures to improve
our operations in Norway. In Building construction Finland, four residential
development projects were completed during Q2. However, the majority of our
residential development projects will be completed during the last quarter.”
“Our financial position continued to develop favourably. Compared to June last
year, our operating capital has decreased from EUR 547 million to EUR 446
million, a decline of EUR 100 million. Simultaneously, our interest-bearing net
debt has decreased from EUR 212 million to EUR 165 million despite the
redemption of the outstanding share of the first hybrid bond during the first
quarter this year. Our financial position has improved significantly during the
past two years.”
“Our comparable order book improved compared to last year. Order inflow for
paving has been good in all market areas, including Russia. In Infra projects,
we won two new projects in Sweden. In Building construction, Finland, we have a
strong order book. We seek profitable growth in complex infrastructure
construction in Sweden and Norway. Especially in Sweden the competition is
intense and we have strengthened the local organisation to support the growth.”
“Going forward, our focus remains on improving our operational result and
competitiveness in all operations. The second quarter of 2016 went as planned
and we are in a good position to reach our financial targets for this year.”
Briefing
A Finnish-language briefing for analysts and the media will be held at 12:00
noon on Thursday 28 July 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
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 Q2/2016
