Lindab International AB :Lindab's Report for the First Quarter 2015

First Quarter 2015

• Sales revenue increased by 12 percent to SEK 1,694 m (1,506), an increase of 5 percent when adjusted for currency and structure.
• Operating profit (EBIT) amounted to SEK 54 m (60), excluding one-off items of SEK 0 m (-3). Including one-off items, it amounted to SEK 54 m (57).
• The operating margin (EBIT), excluding one-off items, amounted to 3.2 percent (4.0).
• The after-tax result improved to SEK 27 m (14).
• Earnings per share improved to SEK 0.35 (0.18).
• Cash flow from operating activities amounted to SEK -83 m (-226).
• The net debt-equity ratio amounted to 0.6 (0.7) at the end of the quarter. 
   

Lindab's President and CEO, Anders Berg, commented:

"Despite a weak month of January, the first quarter was strengthened by increased sales growth for the sixth quarter in a row, which is confirmation that our strategic activities are delivering results.  However, seasonally the first quarter is our smallest quarter and should be interpreted with some caution. Products & Solutions has seen a sales increase of 15 percent in the quarter, since many CEE markets have recovered strongly. Building Systems has increased sales organically, driven by a number of major projects in the CIS, but also impacted by a considerably weakened rouble compared with the same period in the previous year. Building Systems' big markets, Russia and Belarus, have had continued weak growth.

Net profit has been improved at the Group level, while the operating profit and operating margin have deteriorated slightly compared with the previous year. One reason for the slightly lower operating profit is that gross margins have been lower, and that the comparable period in 2014 was Lindab's strongest since 2008, notably due to the weather conditions and a number of major storms having had a positive impact on our profit.

We are continuing to work consciously with our strategy to become the leader in complete ventilation solutions, and we are still only in the start-up phase. The acquisition of MP3 S.r.l. (MP3), which was completed at the beginning of the year, is being integrated very well and has already strengthened our solution offering within ventilation. The first quarter has been marked by a high level of market activity in the form of trade fairs, product launches, new branches and representative offices, for example. This also applies to Building Systems, where we are continuing to work with market diversification through a greater market presence in the UK and selective marketing efforts in Africa, for example.

The strategy is also about streamlining our flows and enhancing service to the customer with improved profitability. During the quarter, we have intensified our efforts to improve resource utilisation both in terms of production capacity and capital throughout the Group by means of a number of structural measures. We have also developed our organisation to reflect our strategic direction and added two new product areas: Fire and Smoke and Air Movement."

End

 
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

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