Lindab's report for the third quarter 2007
Strong Organic Growth
Third quarter 2007
January - September 2007
Lindab reports that its net sales for the third quarter of 2007 reached SEK 2,494 m (2,045) with a profit of SEK 424 m, which excluding the one-off item for 2006 (capital gain of SEK 25 m from the sale of properties) corresponds to an increase of 25 percent when compared with the same period last year.
"All of our regions have shown good growth," says Lindab's CEO and President, Kjell Åkesson. "Organic growth of 13 percent is satisfying. Both of our business areas have grown at the same rate. It is especially pleasing that Building Systems has delivered strongly, particularly in Eastern Europe."
"The margins have strengthened further, which can mainly be explained by stable volume growth. This is despite incurring costs during the quarter resulting from our efforts within Ventilation," says Kjell Åkesson.
The Eastern European market grew by 21 percent during the quarter. The Profile business area accounts for the majority of sales in the region, but Ventilation is growing more quickly. A large order for Building Systems in Russia during September underlines the positive development. The Board has taken a decision to invest SEK 50 m in a new Building Components production unit in Kiev, Ukraine, in order to meet the strong demand there. Production is planned to begin in the second quarter of 2009.
In Western Europe, net sales for the period increased by 42 percent, which can mainly be attributed to the Ventilation business area. The integration of last year's acquisition in the UK was completed ahead of schedule and it has contributed strongly. Furthermore, the launch of the new, easy-to-assemble ventilation system, Lindab Safe Click, has generated increased sales in the three markets where it has been introduced during the quarter, i.e. Germany, Belgium and Switzerland.
Other important events that have been communicated during the period were the presentation of a new partition-wall stud with a click-function, which is being launched in the first quarter of 2008, as well as increasing the financial target for the operating margin to 14 percent. "Moreover, soon after the close of the quarter, we acquired an Irish ventilation company, Aervent Holdings Ltd, with net sales of SEK 110 m." concludes Kjell Åkesson.
Annual General Meeting
The Board has decided that the AGM is to be held on 7 May 2008, in Båstad Sweden. Notice to attend the AGM will be sent out in due course.
1 Capital gain of SEK 25 m from the sale of properties
Ends
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 laws for Stock Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act.
Contacts:
Kjell Åkesson, CEO
Email: kjell.akesson@lindab.com
Tel. +46 (0)431 850 00 / 850 07
Nils-Johan Andersson, CFO
Tel. +46 (0)431 85075
Lindab - a ventilation and construction systems provider:
Lindab is an international group that develops, manufactures and markets sheet metal products and system solutions for the construction sector.
The two business areas, Profile and Ventilation offer complete solutions for construction systems and indoor climate, as well as individual construction and ventilation components for all types of buildings.
Lindab is listed on the Stockholm Stock Exchange, Nordic Large Cap under the ticker "LIAB".
The Lindab group has approximately 5,000 employees in 30 countries and generated sales of approx SEK 9 billion in the twelvemonth period ending 30 September 2007. Its head office is located in Grevie near Bastad in southwestern Sweden. For more information visit www.lindab.com