Lindab International AB :Lindab's Report for the Second Quarter 2014

 Second quarter 2014

• Sales revenue increased by 7 percent to SEK 1,757 m (1,643), an increase of 4 percent when adjusted for currency and structure.
• Operating profit (EBIT) amounted to SEK 125 m (132), excluding one-off items of SEK -1 m (-6).
• The operating margin (EBIT), excluding one-off items, amounted to 7.1 percent (8.0).
• The after-tax result increased to SEK 82 m (61).
• Earnings per share increased to SEK 1.07 (0.80).
• Cash flow from operating activities improved to SEK 88 m (26).
• The net debt / equity ratio amounted to 0.6 (0.8) at the end of the quarter.

 January - June 2014

• Sales revenue increased by 9 percent to SEK 3,263 m (2,984), an increase of 7 percent when adjusted for currency and structure.
• Operating profit (EBIT) increased to SEK 185 m (145), excluding one-off items of SEK -4 m (-12).
• The operating margin (EBIT), excluding one-off items, increased to 5.7 percent (4.9).
• The after-tax result increased to SEK 96 m (33).
• Earnings per share increased to SEK 1.26 (0.43).
• Cash flow from operating activities amounted to SEK -138 m (29).

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

The sales growth of recent quarters has continued. The main part of our activities, Products & Solutions, is showing good sales growth in all regions and we are continuing to increase availability through new establishments in e.g. Nantes, Paris, Bratislava and Moscow, upgrading of branches, notably in Sweden and Romania, as well as a broadened product range. With an organic growth for this segment of eight percent, together with an improved operating margin, we see that the activities and plans we have started up are already generating results.

Unfortunately, our concern about an increasing slowdown in Russia and Belarus, which we had at the end of the first quarter, has been confirmed. This slowdown started already during the second half of 2013, and has been exacerbated by the increased political unrest in the region. This is affecting our Building Systems segment, which has significant exposure to these markets. Despite the fact that needs and demand exist, customers are choosing to postpone capital-intensive decisions into the future. This is the single largest reason for the deterioration in earnings in the quarter for both the division and the Group. We expect that there will be a continued cautious trend in these markets during the autumn.

The after-tax result improved significantly in the quarter as a result of the new lower financing costs. The implementation of the new organisation which was launched in autumn 2013 has also generated the anticipated effects, and we are now working further on utilising the strength of our offering on the local markets. As an example, there have been successful initiatives to sell rainwater systems on what were previously deemed typical "ventilation markets" in Western Europe. Small steps, but clearly in the right direction.

End

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

Per Nilsson, CFO
Email: per.nilsson@lindab.com 
Mobile: +46 (0)70 33 85069

Lindab - A Ventilation and Building Products company:
 
 
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 revenue of SEK 6,523 m in 2013 and is established in 32 countries with approximately 4,400 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales.During 2013, the Nordic market accounted for 46 percent, the CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 24 percent, Western Europe for 27 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