Lemminkäinen financial statement bulletin 2011

LEMMINKÄINEN OYJ FINANCIAL STATEMENT BULLETIN 9 FEBRUARY AT 8 A.M. LEMMINKÄINEN FINANCIAL STATEMENT BULLETIN 2011: Stronger competitiveness, marked improvements in profitability Highlights for October-December 2011, compared with the corresponding period of the previous year: In line with expectations, considerable income was recognized for own residential development during the last quarter. - Net sales grew in October-December by 31%, amounting to EUR 659.0 milli


LEMMINKÄINEN FINANCIAL STATEMENT BULLETIN 2011: Stronger competitiveness, marked improvements in profitability

Highlights for October-December 2011, compared with the corresponding period of the previous year: In line with expectations, considerable income was recognized for own residential development during the last quarter.

- Net sales grew in October-December by 31%, amounting to EUR 659.0 million (503.6).
- The net sales of operations outside Finland grew by 82% and amounted to EUR 231.2 million (127.0).
- The order book grew by 14% and was EUR 1,400.4 million (1,226.4) at the end of 2011.
- Operating profit improved to EUR 9.2 million (5.3). Operating margin was 1.4% (1.1).
- Pre-tax profit amounted to EUR 3.0 million (0.1).
- Earnings per share were EUR -0.03 (-0.14).

Highlights from 2011 compared to the previous year: Financial results improved markedly; particularly for infrastructure construction, the year was excellent. 

- Net sales grew in by 24%, amounting to EUR 2,274.1 million (1,829.6).
- The net sales for operations outside Finland grew by 44% and amounted to EUR 780.3 million (543.5).
- Operating profit improved and amounted to EUR 53.5 million (29.6). Operating margin was 2.4% (1.6).
- Pre-tax profit amounted to EUR 34.6 million (7.6).
- Earnings per share were EUR 1.77 (0.02).
- Balance sheet total at the end of the reporting period was EUR 1,242.8 million (1,062.0), and interest-bearing net debt amounted to EUR 401.2    million (349,2).
- The Board of Directors proposes a dividend of EUR 0.50 per share (0.50).
- Operating profit and pre-tax profit for 2011 do not include the EUR 15.3 million impact of the sale of the roofing business.
- Earnings for the review period are improved by EUR 11.0 million in negative goodwill from the Mesta Industri AS acquisition


Key figures, IFRS,
EUR million
Change 1-12/
Net sales 659.0 503.6 31 % 2,274.1 1,829.6 24 %
- of which operations outside Finland


82 %



44 %
Operating profit 9.2 5.3 74 % 53.5 29.6 81 %
Operating margin % 1.4 1.1   2.4 1.6  
Pre-tax profit 3.0 0.1   34.6 7.6 over 100%
Earnings from
discontinued operations

Result for the financial year -0.1 -1.9   35.6 1.2 over 100%
Earnings per share, EUR -0.03 -0.14 79 % 1.77 0.02 over 100%
Cash flow from business operations



81 %


Key figures, EUR million 31.12.2011 31.12.2010 Change
Order book 1,400.4 1,226.4 14 %
-        of which unsold 206.3 135.3 53 %
-        of which operations outside Finland 482.5 294.3 64 %
Balance sheet total 1,242.8 1,062.0 17 %
Interest-bearing net debt 401.2 349.2 15 %
Equity ratio, % 30.8 35.0  
Gearing, % 114.5 105.7  
Return on investment, % 10.8 7.0  


President & CEO Timo Kohtamäki:

Timo Kohtamäki, President & CEO of Lemminkäinen, is satisfied with the turnabout accomplished last year: "Our net sales, result and order book grew, which means we are more competitive than before. Last year, we improved our production efficiency, developed our procurement operations, and initiated a EUR 50 million efficiency programme. We already have visible results, even though the full extent of the improvements will materialise in the years to come."

The competitiveness has most clearly improved in Lemminkäinen's infrastructure construction, where traditional asphalt and mineral aggregates operations are now complemented by strong expertise in the areas of rock and foundation engineering. "Despite the rise in the cost of raw materials, infrastructure construction reached a significantly improved result. Business operations in Denmark and Norway, in particular, had a strong year", says Kohtamäki. "In residential construction, too, sales were steady all through the year and results were good."

In 2012, Lemminkäinen seeks to improve its profitability and strengthen its balance sheet. "The focus of our business activities will move towards the segments with better profitability - for example, to our own residential construction in Finland and St. Petersburg. Maintenance and servicing for technical building systems will also be bolstered. In less profitable business areas, we will look for ways to cut costs and improve the efficiency of our operations. To further strengthen our balance sheet, we have paid special attention to working capital management and optimisation. Our target is to release approximately EUR 100 million of net working capital by the end of 2013," outlines Kohtamäki.

 Profit guidance realisation in 2011:

In late 2010, Lemminkäinen estimated that its net sales in 2011 would increase and that its pre-tax profit would clearly improve on 2010. The guidance was kept intact throughout the year. In 2011, the net sales of Lemminkäinen grew by 24%, and the company's pre-tax profit grew nearly five-fold compared to the previous year.

Profit guidance for 2012:

Lemminkäinen estimates that in 2012, its net sales will remain on the same level as in 2011, and that its pre-tax profit will improve on 2011. This company's estimate of its net sales and profitability development is based on the year-on-year growth in the order book and its margins.  The guidance is also based on the assumption that the market situation will not deteriorate considerably from late 2011.

Market outlook:

In 2012, the total volume of construction in Finland is estimated to remain at the level of 2011. The order book for construction companies was relatively good in the beginning of 2012. The uncertain financial outlook may, however, delay the start of new projects. Regional differences will be more prominent, and construction is estimated to be busier in the Helsinki metropolitan area and in growth centres than in other regions of the country.  The volume of infrastructure construction in Sweden, Norway and Denmark is expected to grow by 3-8 per cent in 2012. The need for new residential units in St Petersburg, Russia is still great.


A Finnish-language briefing for analysts and the media will be held at 2.00 p.m. on Thursday, 9 February at Lemminkäinen's head office. The street address is Salmisaarenaukio 2, Helsinki, Finland. The financial statement bulletin will be presented by President & CEO Timo Kohtamäki. Presentation material on the financial statement bulletin is available in Finnish and English on the Company's website, www.lemminkainen.com.

Annual General Meeting 2012

The date for Lemminkäinen's Annual General Meeting has changed: Lemminkäinen Corporation's Annual General Meeting for 2012 will be held on Monday, 2 April 2012 at 2:00 p.m. Each shareholder who is registered on 21 March 2012 in the shareholder register of the Company maintained by Euroclear Finland Ltd has the right to participate in the General Meeting. For more information on Lemminkäinen's Annual General Meeting and registration for the meeting, visit the company web pages at www.lemminkainen.com. 

Financial reporting for 2012

In 2012, Lemminkäinen Corporation will release one financial statement bulletin and three interim reports as follows:

9 February 2012 – Financial statement bulletin 2011
3 May 2012 – Interim report, January - March 2012
2 August 2012 – Interim report, January - June 2012
1 November 2012 – Interim report, January - September 2012 

Lemminkäinen Corporation's financial statement bulletin for 2011 is available in its entirety as an appendix to this bulletin.

Corporate Communications

Timo Kohtamäki, President & CEO, tel. +358 2071 53263
Robert Öhman, CFO, tel. +358 2071 53515
Katri Sundström, Investor Relations, tel. +358 2071 54813

Financial statement bulletin 2011
Tabulated sections of the financial statement bulletin.

key media

Lemminkäinen Group operates in all areas of the construction sector. The Group's business sectors are building construction, infrastructure construction, technical building services and international operations. Net sales in 2011 were about EUR 2.2 billion, of which international operations accounted for roughly a quarter. The Group employs an average of 8,400 people. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com