Lindab International AB : Lindab's Report for the Third Quarter 2015

Third quarter 2015

• Sales revenue increased by 5 percent to SEK 2,008 m (1,904), of which Products & Solutions improved to SEK 1,802 m (1,627) and Building Systems amounted to SEK 206 m (277). Adjusted for currency and structure, the change was -1 percent for the Group.
• Operating profit (EBIT) amounted to SEK 205 m (205), including one-off items of SEK 30 m (-5). Excluding one-off items, operating profit (EBIT) amounted to SEK 175 m (210) for the Group, of which Products & Solutions increased to SEK 186 m (174) and Building Systems amounted to SEK -4 m (35).
• The operating margin (EBIT), excluding one-off items, amounted to 8.7 percent (11.0). Products & Solutions amounted to 10.3 percent (10.7) and Building Systems amounted to -1.9 percent (12.6).
• The after-tax result amounted to SEK 146 m (145).
• Earnings per share amounted to SEK 1.91 (1.90).
• Cash flow from operating activities amounted to SEK 117 m (153).

January-September 2015

• Sales revenue increased by 9 percent to SEK 5,609 m (5,167), of which Products & Solutions improved to SEK 5,029 m (4,497) and Building Systems amounted to SEK 580 m (670). Adjusted for currency and structure, the sales increase amounted to 2 percent for the Group.
• Operating profit (EBIT) amounted to SEK 369 m (386), including one-off items of SEK 30 m (-9). Excluding one-off items, operating profit (EBIT) amounted to SEK 339 m (395) for the Group, of which Products & Solutions increased to SEK 391 m (365) and Building Systems amounted to SEK -12 m (48).
• The operating margin (EBIT), excluding one-off items, amounted to 6.0 percent (7.6). Products & Solutions amounted to 7.8 percent (8.1) and Building Systems -2.1 percent (7.2).
• The after-tax result amounted to SEK 242 m (241).
• Earnings per share amounted to SEK 3.17 (3.16).
• Cash flow from operating activities improved to SEK 194 m (15). 

Lindab's President and CEO, Anders Berg, commented:

"The third quarter of the year was a different quarter compared to previous years. The quarter was off to a weak start in July, particularly in Sweden, but a hesitant market was also seen in several other countries. In Sweden, this was supported by the Swedish National Institute of Economic Research's confidence indicator for the Swedish construction sector which showed a clear but brief decline during the summer. However, during the second half of the quarter, growth was strong and in September record sales were achieved in Sweden, Ireland and Norway. Operating profit for Products & Solutions increased for the eighth consecutive quarter compared to the same quarter of the previous year, and growth was 11 percent. We also saw a gradual recovery of the gross margin towards the end of the quarter.

The buildings of the future will require efficient ventilation in order to meet higher energy efficiency requirements. Our strategy to offer complete solutions for this purpose requires both an efficient and well developed distribution. Our strategic focus area "Solutions" has seen an increase in sales of more than 30 percent during the past twelve months, a third of which is organic growth, with sales of just over SEK 1 bn over the past year. Sales and margins within our total ventilation and indoor climate business are now at the highest levels since 2008.

The newly acquired companies complete Lindab's offering. We are especially pleased that Lindab IMP Klima is already seeing positive effects with regard to sales in the form of project business and improved profits. However, the operating margin for Products & Solutions continues to be negatively affected by our acquisitions which will gradually change. When adjusted for acquisitions, the operating margin was in fact strengthened during the quarter.

Within Products & Solutions we are also seeing continued pressurised gross margins, primarily within building solutions, but also within different types of roof and wall cladding. In order to increase general profitability, we are working hard to improve the internal efficiency of our supply chain and develop the product portfolio as well as a number of other strategic activities. The Group's purchasing structure developed positively, and going forward we see a great potential within this area.

Building Systems reports a loss of SEK 4 m for the quarter and is still severely affected by the weak markets in Russia and other CIS countries. The focus on market diversification is paying off, notably in the form of two considerable orders in Africa to be delivered during 2016. The order intake for the quarter increased by 30 percent. Considering the development in Building Systems, it is positive that we are still able to deliver an improved after-tax result for the Group."

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