Lindab International AB :Lindab's Report for the Fourth Quarter and Full Year 2014
Fourth quarter 2014
· Sales revenue increased by 3 percent to SEK 1,836 m (1,786), an increase of 1 percent when adjusted for currency and structure.
· Operating profit (EBIT) amounted to SEK 102 m (158), excluding one-off items of SEK -21 m (-4). Including one-off items, it amounted to SEK 81 m (154).
· The operating margin (EBIT), excluding one-off items, amounted to 5.6 percent (8.8).
· The after-tax result amounted to SEK 42 m (99).
· Earnings per share amounted to SEK 0.55 (1.30).
· Cash flow from operating activities amounted to SEK 263 m (455).
· The net debt-equity ratio amounted to 0.5 (0.5) at the end of the quarter.
January - December 2014
· Sales revenue increased by 7 percent to SEK 7,003 m (6,523), an increase of 5 percent when adjusted for currency and structure.
· Operating profit (EBIT) amounted to SEK 497 m (498), excluding one-off items of SEK -30 m (-46). Including one-off items, it improved to SEK 467 m (452).
· The operating margin (EBIT), excluding one-off items, amounted to 7.1 percent (7.6).
· The after-tax result increased to SEK 283 m (233).
· Earnings per share increased to SEK 3.71 (3.05).
· Cash flow from operating activities amounted to SEK 278 m (620).
· Proposed dividend of SEK 1.10 (0).
Lindab's President and CEO, Anders Berg, commented:
"Already a couple of weeks ago, we reported a significant deterioration in Building Systems' result, which naturally impacted the profit of the Group as a whole. The fourth quarter was generally marked by uncertainty in the market and with large fluctuations in currencies.
At the same time, it is also satisfying to report that Products & Solutions, which is our biggest segment, has shown its best fourth quarter since 2008 in terms of both sales and operating margin.
For Lindab, the fourth quarter also meant starting the implementation of our strategy as the next step in the development of our business. The new strategic direction means, among other things, that we intend to become a supplier of complete ventilation solutions. Somewhat simplified, we dare to claim that Lindab has one of the world's best duct systems as well as many leading indoor climate solutions that we continue to develop. Through the acquisition of the highly reputed company MP3 in Italy, we strengthened our offering in the important area of fire and smoke protection significantly.
The strategy also means that we need to focus and we must critically review our activities in order to generate the resources needed to implement our plans effectively. During the quarter for example, negotiations were initiated on cutbacks in Finland, the decision was made to close down a small production unit in the Czech Republic, and a number of senior management positions were replaced with internal resources, including the country managers in Switzerland, Hungary and the USA. All of these activities are intended to support the implementation of the strategy and increase our efficiency.
The weakened Russian market and its impacts on the Building Systems division are constantly on the agenda. Therefore, within the division we initiated a project to increase market diversification during the year, which has resulted in improved sales in the Western European region. Furthermore, we have made changes in the management of Building Systems, with a new divisional manager already appointed. During the quarter, we also implemented a number of measures to improve the cost structure and create opportunities to further increase our market diversification."
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
Per Nilsson, CFO
Email: per.nilsson@lindab.com
Mobile: +46 (0)70 33 85069
An audiocast telephone conference will be held at 09.30 a.m. (CET). The report will be presented by Anders Berg, President and CEO, and Per Nilsson, CFO.
To access the telephone conference, please call UK +44 (0)20 3428 1400 a few minutes before the scheduled start. Alternatively, call the Swedish number +46 (0) 8 5664 2693.
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