Lindab announces restated and supplemented financial targets
In light of the current economic climate, Lindab is supplementing its EBIT target with a short term target and is rewording its growth target.
Lindab's Restated Financial targets:
- Profitability target: The long-term target of 14 percent EBIT margin remains, but in the near term Lindab will target an EBIT margin of at least 10 percent.
- Growth target: the annual organic growth shall exceed relevant construction market growth by 2-4 percentage points.
President and CEO David Brodetsky comments:
"The long-term EBIT target of 14 percent is still achievable under good economic conditions, but volume recovery is required in order to reach that level, which will probably take some years. In the current market conditions, the goal is to adapt the cost base and optimize the business to achieve at least a 10 percent EBIT margin in the near term. Actions are being launched, including those separately communicated today, to support a run rate at this level before the end of 2013."
"The previous growth target wording was set based on an expectation of a multi-year cyclical recovery. In light of the uncertainty regarding the economic development, this has now been restated. Lindab has been outperforming the market and we expect this to continue with support from environmental trends as well as strong sales activities. The new organic growth target of two to four percentage points above the relevant construction market growth therefore represents a realistic target."
End
| 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 net sales of SEK 6,527 m in 2010, was established in 31 countries and had 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 2010, the Nordic market accounted for 45 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 22 percent, Western Europe for 29 percent and other markets for 4 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Mid Cap. For more information visit www.lindabgroup.com