Hedehusene, Denmark, 2016-11-17 08:30 CET (GLOBE NEWSWIRE) --
First 3 quarters report of 2016 for
ROCKWOOL International A/S
Release no. 8 – 2016
to Nasdaq Copenhagen
17 November 2016
Strong profitability in a continuing slow market
Highlights
* Sales in local currencies in the first 3 quarters increased by 2.3%. Q3 sales grew 1.6%, measured in local currencies.
* EBIT* increased by 40% to EUR 176 million equal to an 10.9% EBIT margin in the first 3 quarters, with significant EBIT margin increase in the Insulation Business. EBIT* in Q3 was EUR 70 million and the EBIT margin reached 12.2%
* The Group’s business transformation program is ahead of schedule and contributed with EUR 31 million included in the EBIT result of the first 3 quarters.
* Investment expenditure was EUR 91 million in the first 3 quarters of 2016, hereof EUR 21 million in Q3.
* Free cash flow improved by EUR 117 million to EUR 140 million for the first 3 quarters of 2016. Q3 generated a strong free cash flow of EUR 127 million.
* Net profit for the first 3 quarters reached EUR 122 million, an improvement of EUR 53 million. Net profit in Q3 was EUR 49 million.
Full year Outlook 2016 maintained
* The Group’s net sales are still expected to show a small positive organic growth in local currencies.
* EBIT margin excluding redundancy costs related to the Business Transformation Program is still expected to be around 10%.
* Investment expenditure expectation for 2016 remains unchanged at around EUR 130 million excluding acquisitions.
*) Ex. redundancy costs from the Business Transformation Program from 2016 and 2015 and write-downs in Asia in 2015.
CEO comment
Commenting on the Group’s performance, CEO Jens Birgersson says:
“We are pleased with the development for the first three quarters. The EBIT margin reached nearly 11%. Our free cash flow generation was strong and we are now net debt free. In the quarter, markets were relatively slow however the System segment delivered a strong top line with 8% growth”
Further information:
Kim Junge Andersen, Chief Financial Officer
ROCKWOOL International A/S
+45 46 56 03 00
