Lindab International AB: Euroconstruct forecasts weakening demand in 2013 before a slow recovery from 2014
Euroconstruct forecasts released on 12 December 2012 predict that the buildings segment in Europe (residential and non-residential) will have decreased by 3.8 percent in 2012 (down from 1.5% decrease in their previous forecast), followed by a further decrease of 1.3 percent in 2013 (down from 0.7% growth in the previous prediction). A slow recovery is predicted to start in 2014.
Lindab's President and CEO David Brodetsky, comments:
"Given the macro economic climate and declining building starts it is no surprise that Euroconstruct has downgraded its forecasts. However, previous Euroconstruct predictions in recent years have been slow to reflect changing and uncertain market conditions and lack precision in predicting demand levels in Lindab's markets.
Lindab has seen weakening demand in 2012 which accelerated in the latter part of the third quarter and has continued into the 4th quarter. Lindab's Q4 2012 sales will also be affected by the harsher winter weather conditions we are experiencing in December in several markets, mainly affecting Building Components. For 2013 we expect a weak start given the current market conditions.
Our EBIT margins have shown steady improvement in recent quarters thanks primarily to our cost and efficiency measures. In the light of the tough prevailing market conditions, this focus will continue along with selected sales initiatives to protect and improve market shares."
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| 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 Swedish Securities Market Act and/or the Financial Instruments Trading Act. |
Contacts:
LINDAB
David Brodetsky, CEO
Email: david.brodetsky@lindab.com
Mobile: +46 (0)73 274 5418
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 business is carried out within three business areas, Ventilation, Building Components and Building Systems. 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 6,878 m in 2011, was established in 31 countries and had approximately 4,300 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2011, the Nordic market accounted for 46 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 23 percent, Western Europe for 28 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