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Lindab International AB (publ): Lindab's Report for the Fourth Quarter and Full Year 2016

Fourth Quarter 2016

  • Net sales increased to SEK 2,039 m (1,980), of which organic growth amounted to 1 percent.
  • Operating profit amounted to SEK 112 m (124), excluding one-off items* of SEK 0 m (-24).
    Operating profit increased by 12.0 percent to SEK 112 m (100).
  • The operating margin, excluding one-off items, amounted to 5.5 percent (6.3).
  • Profit for the period increased to SEK 79 m (63).
  • Earnings per share increased by 27 percent to SEK 1.04 (0.82).
  • Cash flow from operating activities amounted to SEK 265 m (266).
  • The net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.

January - December 2016

  • Net sales increased to SEK 7,849 m (7,589), of which organic growth amounted to 4 percent.
  • The operating profit increased to SEK 511 m (463), excluding one-off items* of SEK -28 m (6).
    Operating profit increased by 3.0 percent to SEK 483 m (469).
  • The operating margin, excluding one-off items, increased to 6.5 percent (6.1).
  • The profit for the period amounted to SEK 306 m (305).
  • Earnings per share increased by 1 percent to SEK 4.02 (3.99).
  • Cash flow from operating activities increased to SEK 499 m (460).
  • The net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.

*See Reconsiliations, page 16.

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

"For the thirteenth consecutive quarter, Lindab increased its sales compared with the corresponding quarter of the previous year. Products & Solutions continues to develop well with organic growth of 4 percent, while Building Systems had a weak quarter with a negative sales trend. Earnings per share increased by 27 percent to SEK 1.04 and with a strong cash flow net debt fell by approximately SEK 250 m during the quarter to, just under SEK 1.4 billion.

Products & Solutions ended 2016 with a good quarter. Net sales increased by 6 percent and operating profit increased by 19 percent, resulting in an operating margin of 7.5 percent (6.7) in the quarter. This is the best fourth quarter for Products & Solutions since the economic boom in 2007.

Products & Solutions continues to grow in line with our strategic plan, with increased profit margin and good sales growth. Ireland and Norway recorded the highest organic growth, but Sweden also experienced good growth despite the negative impact from  less favourable tax conditions for private home improvements (ROT deduction).

Building Systems had a weak fourth quarter. Net sales decreased by 17 percent, and the operating profit recorded last year turned into a loss this year. This is mainly due to a combination of lower delivery volumes, an unfavourable mix and higher steel prices putting strain on the business. The lower sales during the quarter are mainly due to particularly large project deliveries to Africa in the comparable period of the previous year.

We continue to develop our offering and create value for our customers. Innovative products and energy-efficient solutions based on new technology are high on the agenda. Sales of UltraLink began during the quarter, and the first deliveries were received positively by customers. UltraLink has also been nominated by H & V News Awards 2017 in the UK for the prestigious "Air Movement Product of the Year".

We ended 2016 with continued good development for Products & Solutions, but a weak result in Building Systems. In 2017, focus is on the continued execution of our strategy and efficient management of the sharp increase in steel prices of the recent quarter.

With a strong cash flow, lower net debt and belief in the future, the Board of Directors proposes dividends of SEK 1.40 (1.25) per share."
 

End

The information provided here represents information that Lindab International AB (publ) is obliged to make public under the EU's market abuse regulation. This information was made public by the above-mentioned contacts on 10 February 2017 at 14:00 (CET).

An audiocast telephone conference will be held at 14.15 p.m. (CET). The report will be presented by Anders Berg, President and CEO, and Kristian Ackeby, CFO.To access the telephone conference, please call UK +44 (0)20 3008 9803 a few minutes before the scheduled start. Alternatively, call the Swedish number +46 (0) 8 5664 2692.

The conference and presentation can also be followed live online via the link, or via Lindab's homepage.

Contacts:

LINDAB 
Anders Berg, President and CEO
Email: anders.berg@lindab.com
Mobile: +46 (0) 70 35 89155

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.

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