May 9, 2017
Lindab International AB (publ): Lindab's Report for the First Quarter 2017
Net sales increased by 6 percent to SEK 1,858 m (1,752), of which organic growth amounted to 4 percent.
Operating profit increased by 13 percent to SEK 79 m (70), excluding one-off items* of SEK -1 m (-2). Operating profit increased to SEK 78 m (68).
Operating margin, excluding one-off items, increased to 4.3 percent (4.0).
Profit for the period increased by 31 percent to SEK 42 m (32).
Earnings per share increased to SEK 0.55 (0.42).
Cash flow from operating activities amounted to SEK -40 m (-79).
Net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.
*See Reconciliations on page 14.
Lindab's President and CEO, Anders Berg, commented:
"For the fourteenth consecutive quarter, Lindab increased its sales compared with the corresponding quarter of the previous year. Products & Solutions continues to develop positively with organic growth of 10 percent, while Building Systems had a weak quarter with a negative sales trend. Despite the weak performance within Building Systems, the Group's operating profit increased by 13 percent and earnings per share increased by 31 percent to SEK 0.55.
Products & Solutions began 2017 with a good quarter. Net sales increased by 11 percent and operating profit increased by more than 50 percent, resulting in an operating margin of 6.9 percent (5.0). This is the best first quarter for Products & Solutions since the economic boom in 2008. Products & Solutions continued to grow in line with our strategic plan, with good sales growth and increased profit margin. The highest organic growth was seen in Ireland and Hungary. Sweden and Denmark, the two largest markets, continued to show good growth.
As expected, Building Systems had a weak first quarter. Net sales fell by 27 percent, and an operating loss was recorded. The weak performance is mainly due to low delivery volumes, but also higher steel prices putting pressure on the margin. We are beginning to see the effects of the business review and the subsequent initiatives and measures that have been conducted.
During the quarter, Lindab attended the ISH fair in Frankfurt, Germany, where we successfully introduced a number of new products to the market. We presented Lindab Connect, a cloud-based solution for controlling and optimising ventilation in buildings, based on Lindab's complete ventilation system.
We ended the first quarter with continued good development for Products & Solutions, but a weak result in Building Systems. We continue to execute on our strategy and the activities planned for 2017."
The information provided here represents information that Lindab International AB (publ) is obliged to make public under the EU's market abuse regulation. This information was made public by the above-mentioned contacts on 9 May 2017 at 13.00 (CET).
Anders Berg, President and CEO
Mobile: +46 (0)70 35 89155
Kristian Ackeby, CFO
Mobile: +46 (0)70 33 85069
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.
Lindab's Report for the First Quarter 2017