Lindab International AB : Update on the performance of Lindab's Building Systems division for the Fourth Quarter 2014
Lindab's Building Systems division has had a significantly weaker development during the fourth quarter 2014 compared to the same quarter the previous year as a result of weak development of the business in Russia and Belarus. The preliminary figures for the division show sales of SEK 249 m (322) and an operating profit EBIT of SEK 4 m (71) adjusted for one-off items.
The Building Systems division has had strong exposure to Russia since many years, as well as to Belarus. General unrest in these markets combined with the significantly weakened rouble have affected sales and profit negatively during the quarter.
Difficulties for customers to access financing during the quarter have also led to planned projects and shipments being postponed. Furthermore, the weak rouble has led to an unfavourable valuation of operating liabilities, which together with the weak sales have affected the profit negatively.
In the corresponding quarter the previous year, Building Systems reported particularly strong figures regarding profit and good sales growth following a number of successful projects, primarily in Russia and Belarus. In addition, establishment grants were received relating to the production unit in Yaroslavl. Altogether, this generated an operating margin of 22 percent for the fourth quarter 2013, which makes the comparison even more contrasting.
Lindab's largest segment, Products & Solutions shows continued development according to plan for the quarter.
Lindab's President and CEO, Anders Berg, comments:
"Last year, Building Systems represented as much as 45 percent of the Group's profit for the fourth quarter. This shows the factors that affect this kind of project business, with strong fluctuations from quarter to quarter. We have taken further measures to improve the cost structure and to increase the market diversification within Building Systems during the quarter. On the positive side, we see that the order intake and the order book for 2015 are developing positively."
Lindab's complete report for the fourth quarter and the full year 2014 will be presented on 10 February.
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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 6,523 m in 2013 and is established in 32 countries with approximately 4,400 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales.During 2013, the Nordic market accounted for 46 percent, the CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 24 percent, Western Europe for 27 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