Year-end report for 1999
Due to the fact that Lindab is represented on a large number of markets, any risk of influence by an individual market is limited. The Ventilation business area has experienced a stable and rising demand steered by the ever increasing consciousness of the importance of indoor climate from the health aspect. Lindab’s endeavour is to become a total supplier of duct systems. The profit development of the Profile business area is influenced, to a great extent, by the situation of the construction industry and changes in prices of raw materials. During the year the market conditions have been changeable. On the important Swedish market demands increased towards the end of the year. Within the other Nordic markets the picture is somewhat divided, with increased volumes in Denmark and Finland but with a declining demand in Norway at the beginning of the year. In the rest of the European Union turnover was affected by the acquisitions made and we can see good market developments being made in France and Germany.
At the beginning of the year demands in Eastern Europe were affected negatively by the unsettled situation in ex-Yugoslavia. The negative development in Eastern European sales during the final quarter of the year can be referred to changes in the exchange rates. The North American market continued to grow by 38 percent during 1999. The last quarter has been aimed at the restructure of the acquired companies and making them more effective. The powerful increase in sales on the other markets can be explained by the acquisition of Bartholet, a Swiss company. In 1999 consolidated sales amounted to 3,569 (3,330); an increase of 7 percent.
Discounting the companies acquired during the course of the year, sales increased by 3 percent. 10 percentage units of the growth of sales comprised volume increases. Lower net sales prices are estimated as 1 percentage. Changes in exchange rates have had a negative influence on sales by 2 percentage points.
Products manufactured within the Group represented 85 percent (85) of the sales value. Sales abroad increased by 9 percent and amounted to 2,717 (2,500), which represented 76 percent (75) of consolidated sales.
Profit
The operating profit increased by 5 percent to 323 (307). The operating margin was 9.1 percent (9.2).
During the year depreciation increased by 18 to 142 (124). This can be explained by the high level of capital expenditure during recent years. Administrative costs increased by 16 percent to 279 (240). The increase is explained by the company acquisitions and the change-over to 2000. Net interest amounted to 22 and remained unchanged when compared with the preceding year. The average interest rate was 4.5 percent (5.3). The profit after financial items amounted to 301 (285), an increase of 6 percent. The taxation costs for the year amounted to 90 (79), which represented a tax rate of 30 percent (28). The lower rate of taxation in 1998 was due to a deficit deduction referable to Lindab Inc. in the United States. The net profit amounted to 211 (206). The positive developments in profit shown in the third quarter continued during the final months of the year. The profit, after financial items, of the fourth quarter improved by 13 percent to 106 (94). During the period sales rose by 6 percent and amounted to 957 (904).
Schedule for financial information
The interim and year-end reports will also be published on Lindab’s web site www.lindab.se.
27 April 2000 Annual General Meeting
27 April 2000 Interim report for period 1 January – 31 March 2000
11 August 2000 Interim report for period 1 January – 30 June 2000
26 October 2000 Interim report for period 1 January – 30 September 2000
16 February 2001 Year-end report for 2000
The full report including tables is available to download from the enclosed link.