Lemminkäinen and YIT will complete the merger
LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN 15.10.2010 AT 14:50 LEMMINKÄINEN REDUCES ITS FULL-YEAR PROFIT GUIDANCE Lemminkäinen reduces its full-year profitability guidance given in August in connection with the January-June interim review. Full year 2010 pre-tax profit is estimated to be positive but below the 2009 profitability level. The comparative figures do not include the infringement fine imposed by SAC. The 2010 net sales are estimated to be at the 2009 level. Earlier Lemminkäi
LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN 15.10.2010 AT 14:50 LEMMINKÄINEN REDUCES ITS FULL-YEAR PROFIT GUIDANCE Lemminkäinen reduces its full-year profitability guidance given in August in connection with the January-June interim review. Full year 2010 pre-tax profit is estimated to be positive but below the 2009 profitability level. The comparative figures do not include the infringement fine imposed by SAC. The 2010 net sales are estimated to be at the 2009 level. Earlier Lemminkäinen estimated that pre-tax profit for 2010 will be at the 2009 level. Despite the good season in Finland, the infrastructure construction business will not be able to compensate the weak result caused by the severe winter. In all Baltic countries the overall volumes of infrastructure construction have dropped, and due to the harsh competition, the profitability is poor. In building construction, increased cost levels and poorer than estimated end-user demand for commercial and office buildings have decreased the margins in Finland. In addition, the income recognition of a few building construction projects has been delayed till 2011. In technical building services and building products businesses, the competitive situation has remained challenging, which has weakened their profitability. In line with its strategy, Lemminkäinen continues its profitability improvement program. The Infrastructure construction business sector is improving its operating efficiency and decreasing its cost structure, especially in the Baltic countries. The Building construction business sector has initiated measures to improve the efficiency of project management. Lemminkäinen further seeks cost-efficiency by unifying its operating methods, improving its procurement practices and streamlining its structure. In Finland, Lemminkäinen commenced last week statutory co-determination negotiations concerning an estimated reduction of 100 employees. The decision is a part of Lemminkäinen's initiative to adopt a more centralized and efficient operating model for its internal support services. Lemminkäinen estimates that in 2011 its net sales will increase and pre-tax profit will clearly improve on 2010. The estimate is based on the initiated profitability improvement program, improved order book and on the expectation that the overall market situation will remain stable. Lemminkäinen's order book in the end of September 2010 was EUR 1,230 million, i.e. 12 percent higher than in the end of September 2009. LEMMINKÄINEN CORPORATION Corporate Communications Additional information: President & CEO Timo Kohtamäki Lemminkäinen Corporation Tel. +358 2071 53263 DISTRIBUTION: NASDAQ OMX Helsinki Ltd Key media www.lemminkainen.com Lemminkäinen Group operates in all areas of the construction sector. The Group's business sectors are Building Construction, Infrastructure Construction, Technical Building Services, and Building Products. Net sales in 2009 were approx. EUR 2.0 billion, of which international operations accounted for over a quarter. The Group employs about 8,600 people. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Helsinki Ltd. www.lemminkainen.com