May 3, 2018
Lindab International AB (publ): Lindab's Interim Report for the First Quarter 2018
3 May 2018
First quarter 2018
Net sales increased by 16 percent to SEK 2,153 m (1,858), of which organic growth amounted to 13 percent.
Adjusted1) operating profit increased by 32 percent to SEK 104 m (79). The operating profit amounted to SEK 71 m (78).
Adjusted1) operating margin amounted to 4.8 percent (4.3).
Profit for the period increased by 10 percent to SEK 46 m (42).
Earnings per share, before and after dilution, increased to SEK 0.60 (0.55).
Cash flow from operating activities amounted to SEK 42 m (-40).
In January 2018 Ola Ringdahl was appointed new President and CEO of Lindab International AB. Ola will take office 18 June, replacing acting President and CEO Fredrik von Oelreich.
1) Adjusted operating profit/operating margin excludes significant one-off items and restructuring costs.
Lindab's President and CEO, Fredrik von Oelreich, commented:
"In the first quarter, Lindab showed strong organic growth of 13 percent, despite fewer invoicing days as a result of the early Easter. The adjusted operating profit increased by SEK 25 m to SEK 104 m (79).
Products & Solutions sales developed positively with 8 percent organic growth. Operating profit amounted to SEK 118 m (117). Sweden, our largest market, showed a growth of 16 percent, mainly as a result of deliveries of a large Building Solutions project. Among the more important markets in eastern Europe, Poland, Hungary, Czech Republic and Romania all showed organic growth of over 10 percent. All product areas showed growth, with the exception of Rainwater and Building Products, which were negatively affected by the cold winter in the Nordic countries.
The organic growth of Building Systems amounted to 56 percent, driven by large deliveries in Russia. Operating profit improved significantly by SEK 26 m and amounted to SEK 0 m (-26). The implementation of the turnaround programme is on track and gradually began to take effect towards the end of the period. The market continues to develop well and during the period we concluded seven major agreements for orders worth over SEK 10 m. The total backlog was higher at the end of the quarter compared with the same period previous year.
The strategic assessment of our non-ventilation related businesses has entered a new phase, in which the possible option to divest Building Systems is being evaluated.
Price increases have been implemented during the first quarter with further price increases to be implemented during the second quarter. We note that steel prices have begun to increase again, which may result in a need for additional price increases.
Lindab's broader product range and the focus on complete ventilation solutions have been well received by the market, as recently indicated at the international trade fair in Milan, Mostra Convegno Expocomfort. We consistently invest in this area in order to strengthen our offering and move higher up in the value chain."
This information is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 CEST on 3 May 2018.
Fredrik von Oelreich, acting President and CEO
Phone: +46 (0) 431 85424
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 8,242 m in 2017 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 2017, the Nordic market accounted for 46 percent, Western Europe for 33 percent, CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 18 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 2018