Lindab has the construction industry as its primary target segment and sales are concentrated in Europe with less than two percent of sales outside of Europe. Sales are affected by activity in the European construction industry, with emphasis on the countries in Northern Europe.
Lindab’s goal is to keep factories, distribution centres and sales channels open as far as possible. Lindab customers value high availability and delivery precision. By ensuring that critical deliveries can be made, Lindab strengthens its competitiveness and increases customer loyalty. During the first quarter, operations were open in all countries, with reduced opening hours and staffing in the countries with the lowest construction activity.
Lindab has good possibilities to secure deliveries to customers thanks to over 30 production facilities around Europe. Local stock levels have increased to further reduce the risks. Lindab has limited dependency on raw materials and components from countries outside Europe, which reduces the risk of transport disruptions. Alternative suppliers have been used when deemed necessary and this has thus reduced the dependency on individual suppliers.
Lindab’s facilities have clear routines to prevent the spread of infections and to increase the safety of employees. For confirmed covid-19 cases among Lindab’s employees, measures have been taken to prevent further spread of the infection. Protective equipment has been put on stock to secure future
Lindab’s assessment is that covid-19 will affect sales negatively also during the coming quarters. Construction projects are delayed or postponed, and it is unclear how long and to what extent restrictions will last. Lindab has in 2020 reduced the costs to adapt the business to a lower demand. During the first quarter 2021, support measures and short-term work were utilised to a limited extent in a few countries.
Lindab has a strong financial position. Efficiency measures have resulted in a solid balance sheet and a strong profit. The development of the pandemic is closely monitored and Lindab continuously evaluates different scenarios to be able to adapt operations to prevailing circumstances.