The construction industry is Lindab’s primary target segment. Lindab’s sales is concentrated to Europe with less than two percent of sales outside Europe. Sales is primarily affected by the activity in the European construction industry, with emphasis on the countries in Northern Europe.
Lindab’s assessment is that revenue will be negatively affected by covid-19 during the rest of the year. Construction projects are delayed or postponed, especially in UK, France, Italy and parts of Eastern Europe. It is unclear how long the restrictions will last and it increases the uncertainty for whether construction projects will be able to proceed according to plan. Management is continuously working with different scenarios to respond to the future development.
Lindab is today present in Europe with 128 branches in 31 countries and more than 3,000 independent retailers. The largest market is the Nordic region, which represented 43 percent of sales in 2019. Lindab’s goal is to keep factories, distribution and sales channels open. Lindab’s business operations are currently open in all countries.
Deliveries within Europe may be delayed due to increased border controls and lack of drivers. With its 30 production facilities around Europe, Lindab has good possibilities to reduce production disruptions.
Lindab has also initiated measures to reduce costs and to utilise the support measures implemented by several European countries. Short time work has been implemented in countries where revenue and production have been impacted the most.
Lindab has a strong financial position. Improvements in efficiency in 2018 and 2019 have resulted in a solid balance sheet and a strong result. The development in Europe is closely monitored and Lindab adjusts its measures in accordance with the regulations and advice of local authorities.