Lindab International AB (publ): Lindab's Report for the Third Quarter 2017

Third Quarter 2017

• Net sales increased by 2 percent to SEK 2,081 m (2,042), of which organic growth amounted to 2 percent.
• Adjusted¹⁾ operating profit decreased by 15 percent to SEK 162 m (190). Operating profit amounted to SEK 154 m (165).
• Adjusted¹⁾ operating margin amounted to 7.8 percent (9.3).
• Profit for the period increased by 6 percent to SEK 115 m (109).
• Earnings per share, before and after dilution, increased to SEK 1.51 (1.43).
• Cash flow from operating activities amounted to SEK -58 m (126).
• The net debt/equity ratio amounted to 0.4 (0.4) at the end of the period.
• During September Fredrik von Oelreich took office as acting President and CEO.
• The Board has decided to assess strategic alternatives, including the potential divestment of Building Systems and non-ventilation related activities within Products & Solutions. SEB Corporate Finance has been appointed as financial advisors.
  
  

January - September 2017

• Net sales increased by 4 percent to SEK 6,057 m (5,810), of which organic growth amounted to 2 percent.
• Adjusted¹⁾ operating profit decreased by 2 percent to SEK 392 m (399). Operating profit increased to SEK 383 m (371). 
• Adjusted¹⁾ operating margin amounted to 6.5 percent (6.9).
• Profit for the period increased by 16 percent to SEK 263 m (227).
• Earnings per share, before and after dilution, increased to SEK 3.45 (2.98).
• Cash flow from operating activities amounted to SEK 64 m (234).
• The net debt/equity ratio amounted to 0.4 (0.4) at the end of the period.

1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.

Lindab's acting President and CEO, Fredrik von Oelreich, comments:

"Lindab's net sales grew by 2 percent during the third quarter, while the adjusted operating profit decreased by SEK 28 m to SEK 162 m. The result has been adversely affected by reduced gross margin in the Products & Solutions segment. Earnings per share increased by 6 percent to SEK 1.51 due to a lower effective tax rate.

Products & Solutions had organic growth of 2 percent in the quarter with continued positive sales development in the ventilation and indoor climate area. Sales increased in most of the markets, but decreased in Sweden where the Building Solutions product area had particularly large project deliveries during the corresponding period previous year.

The higher steel prices impacted the gross margin in Products & Solutions during the quarter which we have not fully compensated for. As a consequence further price increases will be implemented.

Building Systems recorded organic growth of 3 percent in the quarter, and operating profit improved compared with the previous year. During the first nine months of the year, we focused on  the implementation of different activities to improve business performance. We have also focused on compensating for the increase in steel prices which means that our order intake is somewhat lower than in the same period of the previous year. The order backlog is on par with previous year. Additional measures to address the weak profitability will be taken.

Our long term and methodical efforts to develop and offer the market comprehensive system solutions and related products within ventilation and indoor climate continue. During the quarter, Lindab launched UltraLink 2.0 which is now being sold in a number of northern European markets.

During September Lindab started up its new distribution center in Grevie, Sweden, where utilisation will gradually increase.

The strategic assessment of activities which are not directly linked to ventilation and indoor climate solutions is expected to be carried out without impacting operating activities. Focus is on improving the Group's profitability and growth, especially within ventilation."

End
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This information is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 CEST on 26 October 2017.

Contact:

LINDAB 
Fredrik von Oelreich, acting President and CEO
Email: fredrik.vonoelreich@lindab.com
Phone: +46 (0)431 85424
                                                                                                                                                                   
Kristian Ackeby, CFO
Email: kristian.ackeby@lindab.com
Mobile: +46 (0)70 33 85069

Lindab in brief:

Lindab develops, manufactures, markets and distributes products and system solutions 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 of SEK 7,849 m in 2016 and is established in 32 countries with approximately 5,100 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2016, the Nordic market accounted for 47 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 17 percent and Other markets for 3 percent of total sales.

The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm List, Mid Cap, under the ticker symbol LIAB.