Lindab's report for the Second Quarter 2010

April - June 2010:

• Sales revenue decreased by 6 percent to SEK 1,715 m (1,821), when adjusted for currency and structure sales were unchanged.
• Operating profit (EBIT) increased by 13 percent to SEK 110 m (97), excluding one-off items of SEK -21 m (-12).
• The operating margin (EBIT), excluding one-off items, amounted to 6.4 percent (5.3).
• The after-tax result amounted to SEK 27 m (13).
• Earnings per share amounted to SEK 0.36 (0.17).
• Cash flow from operating activities amounted to SEK 67 m (332).
• Updated vision, strategy and financial targets.

January - June 2010:

• Sales revenue decreased by 18 percent to SEK 2,949 m (3,592), a decrease of 13 percent when adjusted for currency and structure.
• Operating profit (EBIT) amounted to SEK 60 m (122), excluding one-off items of SEK 54 m (-12).
• The operating margin (EBIT), excluding one-off items, amounted to 2.0 percent (3.4).
• The after-tax result amounted to SEK -1 m (-8).
• Earnings per share amounted to SEK -0.01 (-0.11).
• Cash flow from operating activities amounted to SEK -105 m (145).
• A contract concerning the sale and lease-back of property in January 2010 generated cash flow of SEK 285 m, with a capital gain of SEK 73 m.
• Acquisition of the Finnish ventilation company IVK-Tuote Oy.

Lindab's President and CEO, David Brodetsky commented:

"After a hard winter, the downward sales trend has been broken in the 2nd quarter. However, it is still too early to determine to what extent this reflects business that was deferred due to the winter and how much is due to a recovery in the underlying demand. The positive signals seen in the second quarter are primarily improved demand in residential construction, which impacts sales in the Building Components business area in particular.  Demand in the Ventilation business area indicates a stabilisation, but the recovery has not yet got under way. Building Systems has had a weak quarter, but the order intake is now increasing. From a geographic perspective the Nordic region stands out positively. The underlying demand in both Western Europe and CEE/CIS has recovered to pre-winter levels.

 

Purchase prices for steel will be rising sharply in the third quarter. We will compensate for this with increased prices, which have already been announced to our customers.

 

The market outlook is largely unchanged. According to macroeconomic indicators, the demand in Lindab's largest market segment, non-residential construction, is predicted to remain weak in the coming year. For the residential segment, the recovery has begun and is expected to continue in the second half of the year.

 

Lindab's updated strategy takes into account new market conditions, including greater demand for environmentally friendly and energy efficient solutions, high growth potential in Eastern Europe and Russia/CIS and other trends. Focus and resources will be concentrated primarily on the most profitable product and market segments where Lindab's scale, strength and position suggest the strongest growth potential.  Lindab's new vision emphasises the importance of relations with our European customer base - To be the preferred partner for building professionals in our core products Europewide. The new vision and the updated strategy entail a stronger focus which will support our revised financial targets."
  

 

End

 

An audiocast telephone conference will be held today at 09:00 (CET)

 

To access the telephone conference, please call UK +44 (0)20 7806 1968 a few minutes before the scheduled start. Alternatively, call the Swedish number +46 (0)8 5051 3793.

 

The presentation slides will be published in the Investor Relations section of the website http://www.lindabgroup.com/English/ir/presentations/Pages/default.aspx
A recording of the conference will be published within the same section.

 

An interview with the CEO and CFO of Lindab will also be available as a flash presentation on the website.

 

 

 

 

 

 

Contacts:

 

LINDAB

David Brodetsky, CEO

Email: david.brodetsky@lindab.com

Mobile: +46 (0)73 274 5418

 

Nils-Johan Andersson, CFO

Email: nils-johan.andersson@lindab.com

Mobile:+46 (0)70 668 5075

 

 

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 business is carried out within three business areas, Ventilation, Building Components and Building Systems. 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 net sales of SEK 7,019 m in 2009, was established in 31 countries and had approximately 4,500 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2009, the Nordic market accounted for 42 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 21 percent, Western Europe for 32 percent and other markets for 5 percent of total sales.

 

The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Large Cap, under the ticker symbol LIAB. The principal shareholders are Ratos, Sjätte AP-fonden and Skandia Liv. For more information visit www.lindabgroup.com