Lindab International AB (publ): Lindab's Interim Report for the Third Quarter 2019

Third quarter 2019

• Net sales increased by 3 percent to SEK 2,462 m (2,397), of which organic growth was 1 percent.
• Adjusted 1) operating profit increased by 31 percent to SEK 273 2) m (209). Adjusted 1) operating margin increased to 11.1 percent (8.7).
• Operating profit amounted to SEK 273 2) m (200).
• Profit for the period increased to SEK 212 m (152).
• Earnings per share, before and after dilution, increased to SEK 2.78 (1.99).
• Cash flow from operating activities increased to SEK 395 2) m (262).
• In July Lindab divested the Dutch subsidiary Lindab Door B.V.

January – September 2019

• Net sales increased by 6 percent to SEK 7,346 m (6,942), of which organic growth was 3 percent.
• Adjusted 1) operating profit increased by 52 percent to SEK 703 2) m (461). Adjusted 1) operating margin increased to 9.6 percent (6.6).
• Operating profit amounted to SEK 703 2) m (400).
• Profit for the period increased to SEK 535 m (288).
• Earnings per share, before and after dilution, increased to SEK 7.01 (3.78).
• Cash flow from operating activities increased to SEK 651 2) m (355).

1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.
2) Excluding the effect of implemented accounting standard, IFRS 16 Leases, operating profit amounted to SEK 266 m during the quarter and the cash flow from operating activities amounted to SEK 342 m. Operating profit for the period January-September amounted to SEK 683 m and cash flow from operating activities amounted to SEK 491 m.

Lindab’s President and CEO, Ola Ringdahl, comments:

“Lindab increased the adjusted operating profit in Q3 by 31 percent to SEK 273 m (209). The improvement was mainly an effect of a strengthened gross margin. Cost are developing according to plan and efficiency initiatives have high priority. All three business areas contributed, also in the third quarter, to the improved operating profit.

Ventilation Systems continued to deliver improved profitability, and the adjusted operating profit increased to SEK 168 m (129). Organically, the sales development was negative by 3 percent compared to a record high third quarter previous year. The decline is partly a consequence of our prioritisation of profitability over volume, but also an effect of decreased demand in Sweden, Norway and Finland. In addition, the uncertainty regarding Brexit is affecting demand in UK and Ireland.

Profile Systems increased the adjusted operating profit to SEK 82 m (73). The organic sales growth was negative by 3 percent, linked to decreased sales of industrial projects and steel buildings in the Nordics. We evaluate our businesses with focus on sustainable and profitable growth. The business of industrial doors in the Netherlands was divested during the quarter as a consequence of this evaluation.

Building Systems reported good organic sales growth of 23 percent in the quarter. The adjusted operating profit improved to SEK 34 m (14). After two quarters of substantial deliveries and strong sales, the order backlog is now slightly lower than the same period last year. During the quarter Stefaan Sonjeau took office as the new business area manager for Building Systems. The business area is now entering a new interesting phase with continued focus on efficiency improvement and sustainable profitability.

The improvement measures within the Lindab Group continue at a high pace, with the objective to achieve our financial targets and increase the customer satisfaction further. We develop our product offering and enhance our delivery performance. We invest in automised production to improve efficiency and capacity. We focus our efforts on the countries and product areas where we can build a strong position and achieve sustainable growth.

With improved earnings and a stronger balance sheet, Lindab can start to look more actively at bolt-on acquisitions, primarily within Ventilation Systems.”

End
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Contact

Ola Ringdahl, President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00

Malin Samuelsson, CFO
E-mail: malin.samuelsson@lindab.com
Mobile: +46 (0) 701 45 46 85

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 high quality, ease of assembly, energy efficiency and environmentally friendly design and are delivered with high levels of service. Altogether, this provides greater customer value.

The Group had sales of SEK 9,326 m in 2018 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 construction accounts for 20 percent of sales. During 2018, the Nordic region accounted for 45 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe) for 20 percent and Other markets for 2 percent of total sales.

The share is listed on the Nasdaq Stockholm List, Mid Cap, under the ticker symbol LIAB.

This information is information that Lindab International AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2019-10-24 07:40 CEST.