Lindab International AB (publ): Lindab's Report for the Second Quarter 2017

 Second Quarter 2017

• Net sales increased by 5 percent to SEK 2,118 m (2,016), of which organic growth amounted to 2 percent.
• Adjusted¹⁾ operating profit increased by 9 percent to SEK 151 m (139). Operating profit increased to SEK 151 m (138).
• Adjusted¹⁾ operating margin increased to 7.1 percent (6.9).
• Profit for the period increased by 23 percent to SEK 106 m (86).
• Earnings per share increased to SEK 1.39 (1.13).
• Cash flow from operating activities amounted to SEK 162 m (187).
• The net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.
  
  

January - June 2017

• Net sales increased by 6 percent to SEK 3,976 m (3,768), of which organic growth amounted to 3 percent.
• Adjusted¹⁾ operating profit increased by 10 percent to SEK 230 m (209). Operating profit increased to SEK 229 m (206).
• Adjusted¹⁾ operating margin increased to 5.8 percent (5.5).
• Profit for the period increased by 25 percent to SEK 148 m (118).
• Earnings per share increased to SEK 1.94 (1.55).
• Cash flow from operating activities amounted to SEK 122 m (108).
• The net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.

1) Adjusted operating profit/operating margin does not include one-off items and significant restructuring costs. See Reconciliations on page 14.
 

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

"Lindab's net sales grew by 5 percent during the second quarter and the operating profit increased by 9 percent. This achievement is particularly thanks to our continued focus on ensuring profitability through increased sales combined with our handling of the significant rise in steel prices. Earnings per share grew by 23 percent to 1.39, with improvements in both financial items and tax rate.

Products & Solutions showed sales growth of 4 percent during the quarter, and the operating profit improved by 7 percent to SEK 161 m (151). Sales within ventilation continued to develop well, while the Building Solutions product area experienced a decline in sales compared with the previous year. This is as a result of large project deliveries in Sweden during the second quarter, which continued during the third quarter of the previous year.

We continue to see good growth in most of the markets where we are present and see a gradual strengthening of our market positions.

Building Systems recorded sales growth of 17 percent, of which half was currency related. The lower operating profit of SEK -2 m (4) is due to continued margin pressure as a result of the significant increase in steel prices. The completed review of the business, followed by a range of initiatives, is paying off.

Our long-term and methodical efforts to develop and offer the market a comprehensive range of system solutions and related products continue. During the quarter, we won two prestigious awards for UltraLink: the "Stora Inneklimatpriset" in Sweden and the "Product Innovation of the Year Award" in the UK.

As already announced, Lindab has signed new credit agreements, ensuring improved terms and conditions and securing financing for the next three years, with options to renew."

End
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The information provided here represents information that Lindab International AB (publ) is obliged to make public under the EU's market abuse regulation and the Securities Market Act. This information was made public by the above-mentioned contacts on 20 July 2017 at 07.40 (CET).

Contact:

LINDAB 
Anders Berg, President and CEO
Email: anders.berg@lindab.com
Mobile: +46 (0)70 35 89155
                                                                                                                                                                   
Fredrik Liedholm, EvP Head of Legal, HR and M&A
Email: fredrik.liedholm@lindab.com
Mobile: +46 (0)72 38 85742

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 7,849 m in 2016 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 2016, the Nordic market accounted for 47 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 17 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.