Lindab's report for the First Quarter 2010

• Lindab's sales revenue for the first quarter of 2010 decreased by 30 percent to SEK 1,234 m (1,771), adjusted for currency and structure, the decrease was 25 percent.
• Operating profit (EBIT) amounted to SEK -50 m (25), excluding one off items of SEK 75 m (-).
• The operating margin (EBIT), excluding one off items, amounted to -4.1 percent (1.4).
• The after-tax result amounted to SEK -28 m (-21).
• Earnings per share amounted to SEK -0.37 (-0.28).
• Cash flow from operating activities amounted to SEK -172 m (-187).
• A contract concerning the sale and lease back of property released cash flow of SEK 285 m, with a capital gain of SEK 75 m.
• Acquisition of the Finnish ventilation company IVK-Tuote Oy.

 

Lindab's President and CEO, David Brodetsky commented:

 

"Much of Europe was greatly affected by the severe winter in January and February. In the Nordic countries the difficult conditions extended into March. This has adversely affected demand, especially within Building Components and Building Systems.

It is hard to know how much of the sales decrease was due to the weather and how much to the recession. We therefore cannot draw any conclusions or identify trends based on the demand in the first quarter. However, we can confirm that towards the end of March and in early April, with the milder spring weather, seasonally adjusted daily activity levels were not showing any improvement relative to the fourth quarter of 2009 and were well below the levels for the full year of 2009.

Looking ahead, we have received clear signals of significant steel price increases in the coming six months. We will be adjusting our sales prices to compensate for these.

Regarding the outlook for 2010, Lindab is a late cyclical company and we expect that the market conditions will remain difficult. Although the residential segment is expected to start to recover in some markets in 2010, this segment overall only accounts for 20 percent of our sales. Approximately 80 percent of our sales are in the non-residential construction segment, which is not expected to show a recovery until the latter part of 2011."

 

Financial Calendar 2010:

11 May: AGM

14 June: Investor Day

16 July: Interim Report, Q2

1 November: Interim Report, Q3

 

 

End

 

 

 

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