Lindab International AB (publ): Lindab's Report for the Second Quarter 2016

Second Quarter 2016
 

• Net sales increased to SEK 2,016 m (1,907), of which organic growth amounted to 8 percent.
• Operating profit increased to SEK 138 m (110), including one-off items of SEK -1 m (0). Excluding one-off items, the operating profit increased to SEK 139 m (110).
• The operating margin, excluding one-off items, increased to 6.9 percent (5.8).
• Profit for the period increased to SEK 86 m (68).
• Earnings per share increased by 27 percent to SEK 1.13 (0.89).
• Cash flow from operating activities increased to SEK 187 m (160).
• The net debt/equity ratio amounted to 0.5 (0.6) at the end of the quarter.

January - June 2016

• Net sales increased to SEK 3,768 m (3,601), of which organic growth amounted to 6 percent.
• Operating profit increased to SEK 206 m (164), including one-off items of SEK -3 m (0). Excluding one-off items, the operating profit increased to SEK 209 m (164).
• The operating margin, excluding one-off items, increased to 5.5 percent (4.6).
• Profit for the period increased to SEK 118 m (96).
• Earnings per share increased by 23 percent to SEK 1.55 (1.26).
• Cash flow from operating activities increased to SEK 108 m (77).
• The net debt/equity ratio amounted to 0.5 (0.6) at the end of the quarter.

Lindab's President and CEO, Anders Berg, commented:

"Organic growth increased by 8 percent compared with the previous year. Especially the Nordic countries developed very well, but Western Europe also experienced good growth. Operating profit improved by 25 percent which shows that Lindab is on the right track. Both sales and operating profit are the highest reported in a second quarter since 2008.

Products & Solutions continues to develop positively with organic growth in all major markets, and both the operating profit and the operating margin continue to grow. During the quarter, we saw very good organic growth in Air Movement and Fire & Smoke, the product areas which are related to the major acquisitions completed in 2015.

Building Systems showed organic growth and a positive operating profit thanks to a continued focus on market diversification to Western Europe and Africa. The market situation in Russia and CIS remains challenging.

The project concerning the establishment of a distribution centre in Grevie is going according to plan. Once established, the centre will increase product availability and productivity in the supply chain. It is an important project, as we have seen a large increase in the number of orders delivered from the factories in Grevie and Förslöv in recent years.

During the quarter, sheet metal prices increased rapidly in all our markets, prompting us to announce necessary price increases for the second half of 2016.

The UK is our third largest market and represented 9 percent of our external sales in 2015. It is still too early to say what consequences Brexit will have for Lindab. We continue to develop our business according to plan and work on strategic initiatives, but are also prepared to take steps should the need arise."

End

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This information is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at at 07.40 CET on 19 July 2016.
   

Contact:

LINDAB 
Anders Berg, President and CEO
Email: anders.berg@lindab.com
Mobile: +46 (0) 70 35 89155

Kristian Ackeby, CFO
Email : kristian.ackeby@lindab.com
Mobile:  +46 (0)70 33 85069
                                                                                                                                                                   

About Lindab:

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 7,589 m in 2015 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 2015, the Nordic market accounted for 44 percent, Western Europe for 33 percent, the CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 19 percent and other markets for 4 percent of total sales.

The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Mid Cap, under the ticker symbol LIAB. For more information visit www.lindabgroup.com.