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Lindab International AB (publ): Lindab's Report for the Fourth Quarter and Full Year 2017

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8 February 2018

Fourth Quarter 2017

 

  • Net sales increased by 7 percent to SEK 2,185 m (2,039), of which organic growth amounted to 7 percent.
  • Adjusted1) operating profit increased by 6 percent to SEK 119 m (112). Operating profit amounted to SEK 109 m (112).
  • Adjusted1) operating margin amounted to 5.4 percent (5.5).
  • Profit for the period rose by 6 percent to SEK 84 m (79).
  • Earnings per share, before and after dilution, increased to SEK 1.10 (1.04).
  • Cash flow from operating activities amounted to SEK 346 m (265).
  • In December, the Irish ventilation company A.C. Manufacturing Ltd was acquired.
  • In January 2018, Ola Ringdahl was appointed new President and CEO of Lindab International AB. Ola will take office latest July this year, replacing acting President and CEO Fredrik von Oelreich.

January - December 2017

  • Net sales increased by 5 percent to SEK 8,242 m (7,849), of which organic growth amounted to 4 percent.
  • Adjusted1) operating profit amounted to SEK 511 m (511). Operating profit increased to SEK 492 m (483).
  • Adjusted1) operating margin amounted to 6.2 percent (6.5).
  • Profit for the period rose by 13 percent to SEK 347 m (306).
  • Earnings per share, before and after dilution, increased to SEK 4.54 (4.02).
  • Cash flow from operating activities amounted to SEK 410 m (499).
  • The net debt/equity ratio amounted to 0.3 (0.4) at the end of the period.
  • The Board of Directors proposes a dividend of SEK 1.55 (1.40) per share.

             

1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs.

Lindab's acting President and CEO, Fredrik von Oelreich, comments:

"Lindab's net sales increased for the seventeenth consecutive quarter. Organic sales growth amounted to 7 percent during the fourth quarter and adjusted operating profit rose to SEK 119 m (112). As in the third quarter, the operating margin was affected by a reduced margin in Products & Solutions, as we did not fully compensate for the higher prices of raw material. Price increases to customers were announced during the quarter. These will take effect during the first months of 2018.

Organic growth in Products & Solutions developed very favourably, increasing by 9 percent while operating profit increased to SEK 143 m (135). Within Lindab's major markets there was particularly strong growth in Sweden, UK and France. We are experiencing particularly solid growth within our product areas Indoor Climate Solutions and Air Movement.

Building Systems had a weak quarter with a continued negative result. However, the order intake in Russia was strong and the total backlog was notably higher at the end of the quarter compared with the previous year. A comprehensive turnaround programme has been initiated to create sustainable profitability.

Lindab is the first player in Europe to receive a Eurovent certification for the highest air tightness class, class D, for our circular duct systems. This is, as a market leader, further evidence of our ongoing efforts to improve quality.

In December, the Irish company A.C. Manufacturing Ltd was acquired.  The combination of Lindab and A.C. Manufacturing Ltd will further strengthen our ability to deliver complete solutions to the growing Irish ventilation market.

2017 was characterised by continued strong development in Products & Solutions where we managed to gain ground in several key markets. The poor performance in Building Systems has become more evident during the year and we are now taking necessary measures to reverse this development. The strategic evaluation of activities which are not directly linked to ventilation and indoor climate solutions is following plan. Our strategic focus is clear and we are well equipped to pursue profitable growth."

End
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This information is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 CET on 8 February 2018.

Contact:

LINDAB 
Fredrik von Oelreich, acting President and CEO
Email: fredrik.vonoelreich@lindab.com
Phone: +46 (0)431 85424
                                                                                                                                                                   
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 8,242 m in 2017 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 2017, the Nordic market accounted for 46 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 18 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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