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- Stock Exchange Releases
- 11/4/2010
Lemminkäinen's Interim Financial Review 1 January to 30 September, 2010: Growth in net sales and order book
LEMMINKÄINEN OYJ INTERIM FINANCIAL REVIEW 4.11.2010, AT 9.00 a.m. LEMMINKÄINEN'S INTERIM FINANCIAL REVIEW 1 JANUARY TO 30 SEPTEMBER, 2010: Growth in net sales and order book - The order book at the end of September was EUR 1,230.0 million (1,096.1), a year-on-year increase of 12 per cent. - Q3 net sales were 7 per cent higher on the corresponding period last year at EUR 610.4 mi
LEMMINKÄINEN OYJ INTERIM FINANCIAL REVIEW 4.11.2010, AT 9.00 a.m.
LEMMINKÄINEN'S INTERIM FINANCIAL REVIEW 1 JANUARY TO 30 SEPTEMBER, 2010:
Growth in net sales and order book
- The order book at the end of September was EUR 1,230.0 million (1,096.1), a
year-on-year increase of 12 per cent.
- Q3 net sales were 7 per cent higher on the corresponding period last year at
EUR 610.4 million (568.6). January-September net sales were EUR 1,373.6 million
(1,440.4).
- Q3 operating profit was EUR 32.9 million (-9.8). January-September operating
profit was EUR 24.3 million (11.2).
--------------------------------------------------------------------------------
| Key figures, EUR | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| million*) | | | | | |
--------------------------------------------------------------------------------
| Net sales | 610.4 | 568.6 | 1,373.6 | 1,440.4 | 1,965.5 |
--------------------------------------------------------------------------------
| of which operations | 198.4 | 174.4 | 416.5 | 392.5 | 527.6 |
| outside Finland | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 32.9 | -9.8 | 24.3 | 11.2 | 23.2 |
--------------------------------------------------------------------------------
| Operating margin, % | 5.4 | -1.7 | 1.8 | 0.8 | 1.2 |
--------------------------------------------------------------------------------
| Profit before taxes | 26.4 | -16.1 | 7.4 | -14.2 | -10.2 |
--------------------------------------------------------------------------------
| Profit for | 19.7 | -24.2 | 3.1 | -24.5 | -23.8 |
| accounting period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 1.08 | -1.41 | 0.15 | -1.49 | -1.54 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from | 14.7 | 67.1 | -82.2 | -3.5 | 64.2 |
| operating | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key figures, EUR million*) | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Order book | 1,230.0 | 1,096.1 | 1,064.5 |
--------------------------------------------------------------------------------
| - of which unsold | 102.2 | 130.1 | 103.2 |
--------------------------------------------------------------------------------
| - of which operations outside Finland | 252.3 | 296.6 | 224.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | 30.8 | 24.4 | 31.0 |
--------------------------------------------------------------------------------
| Gearing, % | 119.7 | 132.1 | 110.2 |
--------------------------------------------------------------------------------
| Liquid funds | 52.1 | 121.1 | 74.4 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 453.1 | 508.6 | 399.1 |
--------------------------------------------------------------------------------
*) From 1 January 2010 Lemminkäinen observes the interpretation IFRIC 15 -
Agreements for the Construction of Real Estate in its reporting. The comparative
figures for 2009 have also been calculated in accordance with the
interpretation.
Lemminkäinen's President & CEO Timo Kohtamäki is satisfied with the company's
net sales and order book development: "Since the recession in the construction
industry, the past quarter was the first time we saw a year-on-year improvement
in our net sales. Furthermore, our order book has been increasing steadily. At
the same time, the effects of the financial crisis have really impacted many
areas of construction only this year. The recovery has been slow, which is
reflected in our profitability."
Lemminkäinen's housing starts have already risen close to the target level. The
company's infrastructure construction operations in Finland have proven to be
competitive, even though the market has contracted and competition has been
tough. "Unprofitable business in the Baltic states somewhat negated the moderate
result of infrastructure construction operations in Finland. There is also a lot
of capacity in the markets of our other business sectors, which is intensifying
the competitive situation. Increased costs also weighed on profitability."
Kohtamäki characterises 2010 as a year of strategic change for Lemminkäinen:
"Almost exactly a year ago we announced our new strategy, which we have now
purposefully implemented. In our strategy we decided to focus on such growth
areas as housing construction in Russia and infrastructure construction in the
Nordic countries. The results in both of these areas have been good."
"We have also streamlined and harmonised our structure and business practices.
We will go into 2011 with a leaner and more efficient operating model."
Outlook for 2010
In Finland low interest rates and improved consumer confidence will sustain good
demand for housing. Other building construction will remain at a low level.
Demand for renovation construction is expected to grow steadily.
In Russia the housing construction volumes continue to grow stably in 2010.
In the Nordic countries and Baltic states, total paving volumes will decline
from the 2009 levels. Major transport projects and the pick-up in mining
activity will support demand for infrastructure construction.
Demand for technical building services and building materials follows the
building construction cycle, and demand for these products and services is
expected to pick up gradually with the recovery of residential construction.
Lemminkäinen reiterates its guidance released on 15 October 2010, according to
which 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. Full-year 2010 net sales are estimated to be
at the 2009 level.
Lemminkäinen estimates that in 2011 its net sales will increase and pre-tax
profit will clearly improve on 2010.
Briefing
A Finnish-language briefing for analysts and the media will be held at 10:00
a.m. on Thursday, 4 November at Lemminkäinen's head office. The street address
is Salmisaarenaukio 2, Helsinki, Finland. The interim financial review will be
presented by President & CEO Timo Kohtamäki. Presentation material in English
will be available on the Company's website at www.lemminkainen.com after the
briefing.
LEMMINKÄINEN CORPORATION
Corporate Communications
Additional information:
Timo Kohtamäki, President & CEO, tel. +358 2071 53263
Robert Öhman, CFO, tel. +358 2071 53515
Merja Paulamäki, Investor Relations, tel. +358 2071 53367
APPENDICES
Interim Financial Review 1 January to 30 September 2010
Tabulated Section of the Interim Financial Review
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
www.lemminkainen.com
INTERIM FINANCIAL REVIEW 1 January to 30 September 2010
OPERATING ENVIRONMENT
Markets in Finland
Housing construction continued to be brisk, but non-residential building
construction remained at a low level. Demand for housing was increased by low
interest rates and continuing urban migration. The number of new commercial and
office building starts remained low. In particular, there is plenty of vacant
office space available. Industrial investments in Finland remained at a low
level.
The infrastructure construction season started exceptionally late due to the
long winter. The start of the season was busy in Finland and the other Nordic
countries. A reasonable number of infrastructure construction projects were in
progress, but total volumes were down on the previous year. The reasons for this
were reduced government appropriations for basic highway maintenance and the
weak state of municipal finances, which reduced investments and the volume of
street maintenance work. On-going traffic tunnel projects in the Helsinki
Metropolitan Area as well as increased mining activity provided work for rock
engineering contractors.
The slowdown in construction and last year's low level of new building
construction starts continued to be reflected in demand for technical building
services, as they take place in the final phase of construction projects. The
competitive situation in technical building services continued to be tough.
In building products, demand for prefabricated concrete elements in particular
increased with the pick-up in residential construction. Demand for urban
environment products was good, too. The competitive situation in roofing and
urban environment contracting was tough.
Markets outside Finland
In Norway and Denmark demand for paving work was reasonable but weaker than last
year, and competition among paving contractors intensified. In Sweden,
especially the significant tunnel contracts in the Stockholm area provided work
for infrastructure builders.
In the Baltic states the construction market continued to be hard and
competition was tough.
In Russia, housing sales continued to be brisker than in 2009. The Russian
economy is expected to recover in step with the rest of the world.
NET SALES
--------------------------------------------------------------------------------
| Net sales by | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| business sector, | | | | | |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Building | 214.5 | 180.1 | 552.4 | 602.4 | 868.7 |
| Construction*) | | | | | |
--------------------------------------------------------------------------------
| Infrastructure | 314.6 | 304.3 | 591.9 | 594.4 | 768.0 |
| Construction**) | | | | | |
--------------------------------------------------------------------------------
| Technical Building | 55.1 | 52.6 | 165.1 | 168.6 | 233.8 |
| Services | | | | | |
--------------------------------------------------------------------------------
| Building | 50.5 | 48.8 | 115.5 | 115.3 | 154.2 |
| Products**) | | | | | |
--------------------------------------------------------------------------------
| Other operations | -20.3 | -5.9 | -42.6 | -25.0 | -42.2 |
| and Group | | | | | |
| eliminations | | | | | |
--------------------------------------------------------------------------------
| Business sectors, | 614.5 | 579.9 | 1,382.3 | 1,455.6 | 1,982.6 |
| total | | | | | |
--------------------------------------------------------------------------------
| Unallocated Items | -4.1 | -11.3 | -8.7 | -15.2 | -17.1 |
--------------------------------------------------------------------------------
| Group total (IFRS) | 610.4 | 568.6 | 1,373.6 | 1,440.4 | 1,965.5 |
--------------------------------------------------------------------------------
| of which operations | 198.4 | 174.4 | 416.5 | 392.5 | 527.6 |
| outside Finland | | | | | |
--------------------------------------------------------------------------------
*) From 1 January 2010 Lemminkäinen observes the interpretation IFRIC 15 -
Agreements for the Construction of Real Estate in its reporting. The comparative
figures for 2009 have also been calculated in accordance with the
interpretation.
**) Forssan Betoni Oy, which formerly belonged to Lemminkäinen's Infrastructure
Construction business sector, was transferred on 1 January 2010 to the Building
Products business sector. The comparative figures for 2009 have also been
prepared in accordance with the new organisation.
At EUR 610.4 million (568.6), Lemminkäinen's third quarter net sales were 7%
higher on the corresponding period in 2009. January-September net sales were
down slightly at EUR 1,373.6 million (1,440.4). The net sales of the Building
Construction business sector grew in the third quarter, but net sales for the
review period as a whole were about 8% lower than in the corresponding period
last year. The net sales of the Infrastructure Construction business sector for
the first-half of the year fell short of the level achieved a year earlier. The
shortfall was made good in the third quarter.
Lemminkäinen generated 70% (73) of its net sales in Finland, 19% (17) in other
Nordic countries, 5% (3) in Russia and 6% (7) in other countries.
OPERATING PROFIT
--------------------------------------------------------------------------------
| Operating profit | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| by business | | | | | |
| sector, EUR | | | | | |
| million | | | | | |
--------------------------------------------------------------------------------
| Building | 2.7 | 1.2 | 10.6 | 21.7 | 36.4 |
| Construction*) | | | | | |
--------------------------------------------------------------------------------
| Infrastructure | 28.0 | 33.3 | 17.2 | 27.8 | 22.0 |
| Construction**) | | | | | |
--------------------------------------------------------------------------------
| Technical Building | 1.7 | 3.8 | 3.2 | 9.0 | 12.2 |
| Services | | | | | |
--------------------------------------------------------------------------------
| Building | 3.2 | 6.1 | 2.9 | 8.6 | 10.4 |
| Products**) | | | | | |
--------------------------------------------------------------------------------
| Other operations | -3.9 | -56.0 | -11.0 | -58.3 | -61.7 |
--------------------------------------------------------------------------------
| Business sectors, | 31.8 | -11.5 | 23.0 | 8.9 | 19.4 |
| total | | | | | |
--------------------------------------------------------------------------------
| Unallocated Items | 1.1 | 1.8 | 1.3 | 2.3 | 3.8 |
--------------------------------------------------------------------------------
| Group total (IFRS) | 32.9 | -9.8 | 24.3 | 11.2 | 23.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating margin | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| by business | | | | | |
| sector, % | | | | | |
--------------------------------------------------------------------------------
| Building | 0.4 | 0.7 | 1.9 | 3.6 | 4.2 |
| Construction*) | | | | | |
--------------------------------------------------------------------------------
| Infrastructure | 6.8 | 10.9 | 2.9 | 4.7 | 2.9 |
| Construction**) | | | | | |
--------------------------------------------------------------------------------
| Technical Building | 0.5 | 7.3 | 1.9 | 5.3 | 5.2 |
| Services | | | | | |
--------------------------------------------------------------------------------
| Building | 3.0 | 12.5 | 2.5 | 7.5 | 6.8 |
| Products**) | | | | | |
--------------------------------------------------------------------------------
| Group total (IFRS) | 5.4 | -1.7 | 1.8 | 0.8 | 1.2 |
--------------------------------------------------------------------------------
*) From 1 January 2010 Lemminkäinen observes the interpretation IFRIC 15 -
Agreements for the Construction of Real Estate in its reporting. The comparative
figures for 2009 have also been calculated in accordance with the
interpretation.
**) Forssan Betoni Oy, which formerly belonged to Lemminkäinen's Infrastructure
Construction business sector, was transferred on 1 January 2010 to the Building
Products business sector. The comparative figures for 2009 have also been
prepared in accordance with the new organisation.
Lemminkäinen's third quarter operating profit increased on the comparison period
a year ago and was EUR 32.9 million (-9.8). The January-September operating
profit rose to EUR 24.3 million (11.2). The January-September operating margin
was 1.8% (0.8). The operating profit for the comparitive period in 2009 included
EUR 54 million of the infringement fine imposed by the SAC.
The housing market was brisk during the review period, but increased cost levels
and poorer-than-expected end-user demand for commercial and office buildings
weakened the profitability of the Building Construction business sector. Even
though the long winter increased costs especially in the Infrastructure
Construction business sector, the infrastructure operations in Finland achieved
reasonable profitability. The total volumes of infrastructure construction in
the Baltic states fell in the review period, and tough competition weakened the
profitability of operations in those countries. Intensified competition weakened
margins in the Technical Building Services and Building Construction business
sectors. Moreover, the profitability of the Building Construction and Technical
Building Services business sectors was impaired by the recognition of
non-recurring items stemming from restructuring and business adjustment
measures.
ORDER BOOK
--------------------------------------------------------------------------------
| Order book by business sector, | 30.9.2010 | 30.9.2009 | 31.12.2009 |
| EUR million | | | |
--------------------------------------------------------------------------------
| Building Construction*) | 677.4 | 582.8 | 601.7 |
--------------------------------------------------------------------------------
| - of which unsold | 102.2 | 130.1 | 103.2 |
--------------------------------------------------------------------------------
| Infrastructure Construction**) | 395.9 | 382.1 | 319.2 |
--------------------------------------------------------------------------------
| Technical Building Services | 118.1 | 90.3 | 106.8 |
--------------------------------------------------------------------------------
| Building Products**) | 38.7 | 40.9 | 36.8 |
--------------------------------------------------------------------------------
| Group, total | 1,230.0 | 1,096.1 | 1,064.5 |
--------------------------------------------------------------------------------
| - of which international orders | 252.3 | 296.6 | 224.4 |
--------------------------------------------------------------------------------
*) From 1 January 2010 Lemminkäinen observes the interpretation IFRIC 15 -
Agreements for the Construction of Real Estate in its reporting. The comparative
figures for 2009 have also been calculated in accordance with the
interpretation.
**) Forssan Betoni Oy, which formerly belonged to Lemminkäinen's Infrastructure
Construction business sector, was transferred on 1 January 2010 to the Building
Products business sector. The comparative figures for 2009 have also been
prepared in accordance with the new organisation.
Lemminkäinen's order book grew 12% year on year, and at the end of September was
1,230.0 million (1,096.1). The year-on-year growth rates were highest in
Technical Building Services (31%) and Building Construction (16%). International
business accounted for 21% (27) of the order book.
The order book also includes the unrecognised part of the completed housing
stock.
The most notable new orders received during the review period included
earthworks and concrete construction contracts at the Kevitsa nickel-copper mine
in Sodankylä, Northern Finland. The client is Kevitsa Mining Ab, a subsidiary of
the Canadian mining company First Quantum Minerals Ltd. The total value of the
construction works is approx. EUR 25 million, and the contracts are expected to
be completed in autumn 2011.
In July 2010 Lemminkäinen signed a contract to continue co-operation in the full
renovation of the Kluuvi shopping centre in downtown Helsinki. The project
management contract is worth approx. EUR 17 million and the works will be
completed by autumn 2011.
In Sweden, Lemminkäinen is building a cable tunnel in Mörby, a northern suburb
of Stockholm. The contract is worth approx. EUR 10 million and it will be
completed in summer 2013. Lemminkäinen also won the foundation reinforcement
contract for Stockholm's central railway station. The contract is worth approx.
EUR 10 million. Lemminkäinen's share of the total project entity will be
completed in summer 2012.
During the review period Lemminkäinen and Naumanen Oy signed an agreement
concerning a share transaction relating to phase I of a retail trade property
called Kauppapaikka Herman in Kuopio. The agreement covers approximately half of
the property owned by real estate company Kiinteistö Oy Kuopion Leväsentie 2.
The property is worth approx. EUR 60 million. The shopping centre built by
Lemminkäinen will be completed in spring 2012.
BALANCE SHEET, CASH FLOW AND FINANCING
One of Lemminkäinen's financial goals is strengthening of the balance sheet.
Under an authorisation granted by the Extraordinary General Meeting of
Lemminkäinen Corporation held on 12 November 2009, the Board of Directors
decided on 17 March 2010 on two separate share issues. The Company offered
1,700,000 new shares in the Company for subscription by institutional investors
approved by the Board of Directors. The consideration received from the issuance
of shares to institutional investors totalled EUR 39.5 million, which was booked
to the Company's invested unrestricted equity reserve. The funds raised from the
issue were used for the amortisation of short-term loans.
The Board of Directors also decided on a share issue in which the Company
offered 923,514 new shares in the Company for subscription against receipt of
consideration in the form of shares by the minority shareholders of Lemminkäinen
Corporation's subsidiaries Lemminkäinen Talotekniikka Oy and Lemminkäinen Talo
Oy. The subscription price of the shares was EUR 23.25 per share, totalling EUR
21.5 million.
The consolidated balance sheet total at 30 September 2010 was EUR 1,205.7
million (1,331.5). The return on investment was 5.1% (3.1) and the equity ratio
30.8% (24.4). Gearing was 119,7% (132.1).
According to the cash flow statement, the cash flow from operating activities in
January-September was EUR -82,2 million (-3.5), the cash flow from investing
activities EUR -19.4 million (-15.2) and the cash flow from financing activities
EUR 81.2 million (-108.4). The cash flow for the review period includes the
payment of dividends totalling EUR 2.1 million (18.0). The dividends paid in
2010 include only dividends paid to the minority interests of subsidiaries. In
the July-September period the cash flow from operating activities was EUR -14.7
million (67.1), the cash flow from investing activities EUR -4.8 million (1.1)
and the cash flow from financing activities EUR 3.9 million (-58.1).
Working capital declined 8% to EUR 836.0 million (909.1) and net working capital
grew some 10% to EUR 444.1 million (404.0).
Liquid funds at the end of the review period were EUR 52.1 million (121.1).
The amount of interest-bearing debt at the end of the review period was EUR
453.1 million (508.6), of which EUR 230.9 million (450.2) was short-term debt
and EUR 222.2 million (58.4) long-term debt. Interest-bearing net debt was EUR
401.0 million (387.5). Net financing expenses were EUR 16.9 million (25.4),
representing 1.2% (1.8) of net sales.
During the review period Lemminkäinen issued a EUR 60 million four-year domestic
bond with an annual coupon of 4.50%. The bond was listed on NASDAQ OMX Helsinki
Ltd after the end of the review period. The bond issue refinanced a EUR 60
million syndicated loan maturing in January 2011. At the same time Lemminkäinen
broadened its financing base and extended the maturity distribution of its debt
portfolio.
Lemminkäinen's interest-bearing debt comprised loans from financial institutions
16% (42), commercial paper 27% (10), project loans related to own housing
production and non-residential construction 7% (16), TyEL (employee pensions
premium) loans 21% (18), finance leasing liabilities 12% (11), bonds 13% (0) and
other liabilities 4% (3). At the end of the review period Lemminkäinen had an
unused EUR 150 million line of credit.
BUSINESS SECTORS
BUILDING CONSTRUCTION
--------------------------------------------------------------------------------
| Key figures, EUR | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| million*) | | | | | |
--------------------------------------------------------------------------------
| Net sales | 214.5 | 180.1 | 552.4 | 602.4 | 868.7 |
--------------------------------------------------------------------------------
| Operating profit**) | 2.7 | 1.2 | 10.6 | 21.7 | 36.4 |
--------------------------------------------------------------------------------
| Operating margin, % | 0.4 | 0.7 | 1.9 | 3.6 | 4.2 |
--------------------------------------------------------------------------------
| Order book at end | | | 677.4 | 582.8 | 601.7 |
| of period | | | | | |
--------------------------------------------------------------------------------
| - of which unsold | | | 102.2 | 130.1 | 103.2 |
--------------------------------------------------------------------------------
*) From 1 January 2010 Lemminkäinen observes the interpretation IFRIC 15 -
Agreements for the Construction of Real Estate in its reporting. The comparative
figures for 2009 have also been calculated in accordance with the
interpretation.
**) From 1 January 2010 financial items are no longer reported
sector-specifically in segment reports delivered to management. For this reason
sector-specific comparative figures are presented only up until the operating
profit line.
The third quarter net sales of the Building Construction business sector rose
19% year on year to EUR 214.5 million (180.1). January-September net sales were
EUR 552.4 million (602.4), which was 8% down on the same period last year. The
business sector generated 75% (82) of its net sales in Finland, 11% (6) in other
Nordic countries, 7% (4) in Russia and 7% (8) in other countries. The business
sector's January-September operating profit was EUR 10.6 million (21.7).
The housing market was brisk in the review period, and income from housing
starts made in the second half of 2009 began to be recognised during the third
quarter. Increased costs and lower-than-expected end-user demand for commercial
and office buildings weakened the profitability of building construction in the
review period. The business sector has initiated measures to improve its
profitability by enhancing the efficiency of its process management in its own
real estate and housing production and by streamlining the company structure.
The business sector's order book developed favourably during the review period
and at the end of September was EUR 677.4 million (582.8), i.e. 16% higher than
a year earlier. The share of international business in the order book remained
at the previous year's level at EUR 111.9 million (119.5).
Operations in Finland
--------------------------------------------------------------------------------
| Lemminkäinen's private-sector | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| housing production, Finland | | | |
--------------------------------------------------------------------------------
| Housing starts | 675 | 195 | 351 |
--------------------------------------------------------------------------------
| Housing units sold | 601 | 546 | 771 |
--------------------------------------------------------------------------------
| Completed | 152 | 519 | 533 |
--------------------------------------------------------------------------------
| Under construction at end of | 928 | 263 | 405 |
| period | | | |
--------------------------------------------------------------------------------
| - of which unsold | 382 | 148 | 193 |
--------------------------------------------------------------------------------
| Unsold completed units at end of | 148 | 377 | 263 |
| period | | | |
--------------------------------------------------------------------------------
Lemminkäinen made in total 1,315 (880) new housing starts in Finland during the
review period. In addition to its own housing developments, Lemminkäinen made
640 (685) contracted housing starts during the review period.
At the end of the review period Lemminkäinen owned a total of 866,000 m2
(890,000) of unused building rights in Finland, of which approx. 384,000 m2
(395,000) were residential building rights. The Company also had binding or
conditional co-operation and zoning agreements for about 782,000 m² (765,000),
of which about 281,000 m² (358,000) were residential building rights. The
balance sheet value of the building plots was EUR 94.2 million (92.0).
Even though demand for real estate investment picked up in the review period,
end-user demand for commercial and office premises was slow, and their
construction volumes continued to be subdued in the review period. Demand for
commercial and logistics construction was reasonable in the review period.
The municipalities' interest in life-cycle projects increased markedly in the
review period, but no decisions on new projects were made. The renovation
construction market remained stable during the review period. Renovation
construction accounted for about 19% (17) of Lemminkäinen's building
construction business in the review period.
Operations outside Finland
--------------------------------------------------------------------------------
| Lemminkäinen's private-sector | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| housing production, Russia | | | |
--------------------------------------------------------------------------------
| Housing starts | 184 | 0 | 0 |
--------------------------------------------------------------------------------
| Housing units sold | 202 | 81 | 133 |
--------------------------------------------------------------------------------
| Completed | 498 | 0 | 104 |
--------------------------------------------------------------------------------
| Under construction at end of | 184 | 323 | 479 |
| period | | | |
--------------------------------------------------------------------------------
| - of which unsold | 184 | 181 | 367 |
--------------------------------------------------------------------------------
| Unsold completed units at end of | 196 | 0 | 22 |
| period | | | |
--------------------------------------------------------------------------------
In St. Petersburg, Russia, Lemminkäinen completed a housing development of 498
units in the third quarter of the year. Some 300 of these units had been sold by
the end of September, and sales are expected to continue at a brisk pace.
Lemminkäinen is building some 180 apartments and 600 m2 of commercial premises
in a northern district of St. Petersburg. The development is expected to be
completed in autumn 2011. The company also acquired a building plot on St.
Petersburg's Vasil Island near the city centre. Construction work on a 540-unit
apartment building is expected to start during 2011 and to be completed in
autumn 2013.
The value of the inventories that Lemminkäinen had tied up in Russia at the end
of the review period was EUR 47.9 million (33.0).
The most important foreign markets for the Building Construction business sector
are Sweden, China, India and Poland.
INFRASTRUCTURE CONSTRUCTION
--------------------------------------------------------------------------------
| Key figures, EUR | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| million*) | | | | | |
--------------------------------------------------------------------------------
| Net sales | 314.6 | 304.3 | 591.9 | 594.4 | 768.0 |
--------------------------------------------------------------------------------
| Operating profit**) | 28.0 | 33.3 | 17.2 | 27.8 | 22.0 |
--------------------------------------------------------------------------------
| Operating margin, % | 6.8 | 10.9 | 2.9 | 4.7 | 2.9 |
--------------------------------------------------------------------------------
| Order book at end | | | 395.9 | 382.1 | 319.2 |
| of period | | | | | |
--------------------------------------------------------------------------------
*) Forssan Betoni Oy, which formerly belonged to Lemminkäinen's Infrastructure
Construction business sector, was transferred on 1 January 2010 to the Building
Products business sector. The comparative figures for 2009 have also been
prepared in accordance with the new organisation.
**) From 1 January 2010 financial items are no longer reported
sector-specifically in segment reports delivered to management. For this reason
sector-specific comparative figures are presented only up until the operating
profit line.
The third quarter net sales of the Infrastructure Construction business sector
rose slightly year on year to EUR 314.6 million (304.3). January-September net
sales remained at previous year's level at EUR 591.9 million (594.4). The
business sector generated 54% (53) of its net sales in Finland, 33% (34) in the
other Nordic countries, 9% (10) in the Baltic states, and 4% (3) in other
countries. The operating profit for the review period was EUR 17.2 million
(27.8). The long winter delayed the start of the infrastructure construction
season in all markets. Operations were affected especially in Norway, Denmark
and the Baltic states. In Finland, Lemminkäinen had a good season. Total market
volume in the Baltic states was lower than a year ago, and intensified
competition weakened the profitability of infrastructure construction. The
business sector is improving its operating efficiency and decreasing its cost
structure, especially in the Baltic states.
The business sector's order book remained at the year-ago level and at the end
of the review period was EUR 395.9 million (382.1).
Operations in Finland
In spite of constrained municipal finances and cuts in government funding for
basic highway maintenance, Lemminkäinen's paving season in Finland was
satisfactory.
In rock engineering the review period was brisk due to major tunnel-building
projects and the pick-up in mining activity. Good demand for geotechnical
engineering works continued during the review period due to the recovery of
housing construction, among other factors. Demand for transport infrastructure
construction continued to be reasonable during the review period, but
competition was tough.
In mineral aggregates and crushing contracting the winter was quiet. Towards the
end of the review period the recovery of building construction boosted demand
for mineral aggregates to a higher level than a year earlier.
Operations outside Finland
Harsh winter conditions brought paving works in Norway and Denmark to a
standstill. The start of the season was delayed by the long winter, but towards
the end of the review period the paving season was good, especially in Denmark.
Tough competition continued in both countries.
In Norway Lemminkäinen acquired a 75% majority stake in Asfalt Remix AS, a
Norwegian company specialising in the cold milling of asphalt pavement, which
generated net sales of EUR 8 million in 2009. Also during the review period
Lemminkäinen also acquired a 90.1% stake in Risa Rock AS, a Norwegian tunnel
excavation company, which generated net sales of EUR 16 million in 2009.
In Sweden Lemminkäinen's operations mainly concentrated in with tunnel and
geotechnical engineering works as well as the excavation of the Kiruna iron ore
mine.
In the Baltic states the harsh winter halted paving works and delayed the start
of the season. Total volumes of infrastructure construction in the review period
fell from the year-ago level across the area. Furthermore, tough competition
weakened profitability, and Lemminkäinen's operations in the Baltic states were
unprofitable.
TECHNICAL BUILDING SERVICES
--------------------------------------------------------------------------------
| Key figures, EUR | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| million *) | | | | | |
--------------------------------------------------------------------------------
| Net sales | 55.1 | 52.6 | 165.1 | 168.6 | 233.8 |
--------------------------------------------------------------------------------
| Operating profit*) | 1.7 | 3.8 | 3.2 | 9.0 | 12.2 |
--------------------------------------------------------------------------------
| Operating margin, % | 0.5 | 7.3 | 1.9 | 5.3 | 5.2 |
--------------------------------------------------------------------------------
| Order book at end | | | 118.1 | 90.3 | 106.8 |
| of period | | | | | |
--------------------------------------------------------------------------------
*) From 1 January 2010 financial items are no longer reported
sector-specifically in segment reports delivered to management. For this reason
sector-specific comparative figures are presented only up until the operating
profit line.
The third quarter net sales of the Technical Building Services business sector
rose 5% year on year and were EUR 55.1 million (52.6). The January-September net
sales remained at the year-ago level at EUR 165.1 million (168.6). The operating
profit was EUR 3.2 million (9.0). In spite of tougher competition in the sector,
Lemminkäinen maintained its market share during the review period.
January-September profitability was impaired by intensified competition as well
as non-recurring items stemming from restructuring and business adjustment
measures.
In new construction the technical building services take place in the final
phase of construction projects, and increased building construction activity
shows up in the sector's work load with a lag. Lemminkäinen's Technical Building
Services business sector is increasingly shifting its focus towards renovation
construction and servicing and maintenance work, which nowadays already account
for a half of the sector's net sales. Demand for the business sector's
industrial services remained minimal during the review period.
The order book at the end of the review period was up 31% on the year-ago level
at EUR 118.1 million (90.3).
BUILDING PRODUCTS
--------------------------------------------------------------------------------
| Key figures. EUR | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| million*) | | | | | |
--------------------------------------------------------------------------------
| Net sales | 50.5 | 48.8 | 115.5 | 115.3 | 154.2 |
--------------------------------------------------------------------------------
| Operating profit**) | 3.2 | 6.1 | 2.9 | 8.6 | 10.4 |
--------------------------------------------------------------------------------
| Operating margin, % | 3.0 | 12.5 | 2.5 | 7.5 | 6.8 |
--------------------------------------------------------------------------------
| Order book at end | | | 38.7 | 40.9 | 36.8 |
| of period | | | | | |
--------------------------------------------------------------------------------
*) Forssan Betoni Oy, which formerly belonged to Lemminkäinen's Infrastructure
Construction business sector, was transferred on 1 January 2010 to the Building
Products business sector. The comparative figures for 2009 have also been
prepared in accordance with the new organisation.
**) From 1 January 2010 financial items are no longer reported
sector-specifically in segment reports delivered to management. For this reason
sector-specific comparative figures are presented only up until the operating
profit line.
The third quarter net sales of the Building Products business sector rose
slightly from the year-ago level to EUR 50.5 million (48.8). The
January-September net sales were EUR 115.5 million (115.3) and the operating
profit EUR 2.9 million (8.6).
The long winter delayed the start of the business sector's contracting and
products sales season. Sales of yard paving stones and roofing products picked
up towards the end of the review period and slightly exceeded the level of the
previous year. Demand for pre-cast concrete staircase and façade elements was
brisk during the review period thanks to the recovery of housing construction.
The business sector's profitability was weakened by higher raw material prices
and intensified competition among roofing and urban environment construction
contractors.
The order book at the end of the review period was EUR 38.7 million (40.9).
SHARES AND SHARE CAPITAL
The listed price of Lemminkäinen Corporation's share was EUR 24.20 (13.05) at
the beginning of the review period and EUR 24.70 (26.50) at the end of the
review period. The market capitalisation at the end of the review period was EUR
485.2 million (451.1). Altogether 3,166,561 shares (1,237,703) were traded
during the review period. The total value of the turnover was EUR 78.4 million
(24.1). At the end of the review period the Company had 5,069 (4,824)
shareholders.
The Extraordinary General Meeting of Lemminkäinen Corporation, held on 12
November 2009, decided in accordance with the proposal of the Board of
Directors, to authorise the Board of Directors to resolve on a share issue
and/or an issue of special rights entitling to shares referred to in Chapter 10,
Section 1 of the Finnish Limited Liability Companies Act, in one or several
instalments, either against payment or without payment. The General Meeting also
authorised the Board of Directors to resolve on the acquisition of the Company's
own shares.
On 17 March 2010 the Board of Directors decided on two separate share issues.
The Company offered 1,700,000 new shares in the Company for subscription by
private and institutional investors approved by the Board of Directors. The
Board of Directors also decided on a share issue in which the Company offered
923,514 new shares in the Company for subscription against receipt of
consideration in the form of shares by the minority shareholders of Lemminkäinen
Corporation's subsidiaries Lemminkäinen Talotekniikka Oy and Lemminkäinen Talo
Oy. The subscription price of the shares was EUR 23.25. The new shares were
recorded in the Trade Registry and listed on NASDAQ OMX Helsinki Ltd on 23 March
2010.
After the share issues the Board of Directors was still authorised to issue
1,576,486 shares and/or special rights entitling to shares. The authorisation
will remain in force for five (5) years from the date on which it was granted.
Moreover, the authority granted to the Board of Directors by the Extraordinary
General Meeting on 12 November 2009 to acquire the Company's own shares has not
been used, and it will remain in force for 18 months from the date of the
General Meeting's decision.
Lemminkäinen's share capital is EUR 34,042,500. The Company has one share series
and after the share issue the total number of issued shares is 19,644,764.
INVESTMENTS
Gross investments made during the review period amounted to EUR 44.5 million
(32.4). The investments were mainly replacement investments for infrastructure
construction, but also included two business acquisitions made in Norway during
the review period.
PERSONNEL
--------------------------------------------------------------------------------
| Personnel, average | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Hourly paid employees | 5,423 | 5,645 | 5,559 |
--------------------------------------------------------------------------------
| Salaried staff | 2,916 | 3,116 | 3,067 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, total | 8,339 | 8,761 | 8,626 |
--------------------------------------------------------------------------------
| of whom working outside Finland | 2,398 | 2,685 | 2,607 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at the end of the | 8,920 | 9,010 | 7,759 |
| review period | | | |
--------------------------------------------------------------------------------
| Personnel by business sector, | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| average | | | |
--------------------------------------------------------------------------------
| Building Construction | 2,246 | 2,414 | 2,356 |
--------------------------------------------------------------------------------
| Infrastructure Construction*) | 3,212 | 3,453 | 3,395 |
--------------------------------------------------------------------------------
| Technical Building Services | 1,893 | 1,958 | 1,941 |
--------------------------------------------------------------------------------
| Building Products*) | 842 | 822 | 820 |
--------------------------------------------------------------------------------
| Parent company | 146 | 114 | 114 |
--------------------------------------------------------------------------------
| Total | 8,339 | 8,761 | 8,626 |
--------------------------------------------------------------------------------
*) Forssan Betoni Oy, which formerly belonged to Lemminkäinen's Infrastructure
Construction business sector, was transferred on 1 January 2010 to the Building
Products business sector. The comparative figures for 2009 have also been
prepared in accordance with the new organisation.
The average number of employees in the Group during the review period was 8,339
(8,761), down 5% on the comparison period. 71% (69) of the personnel worked in
Finland, 12% (13) in other Nordic countries, 10% (11) in the Baltic states and
7% (7) in other countries.
The number of personnel has been adjusted to the prevailing market situation.
ORGANISATIONAL CHANGES
One of Lemminkäinen's strategic goals is a move towards one united Lemminkäinen.
This involves, among other things, streamlining the organisation structure, and
consequently, some 20 of the Group's companies in Finland will be merged during
2010. The changes will be most notable in the Building Construction and
Technical Building Services business sectors. In the beginning of 2011, the
structure of the Building Products business sector will be further streamlined
by merging the domestic subsidiaries into the business sector's parent company,
Lemminkäinen Talo Oy.
Lemminkäinen's internal support services - HR, financial administration, ICT,
legal affairs and communications & marketing - are also being developed and
consolidated. The new shared services aim to offer optimal support for
Lemminkäinen's business goals and growth, and enhance the Group's
competitiveness through cost-effective, high-quality and professionally
delivered services.
ANNUAL GENERAL MEETING DECISIONS AND GOVERNANCE
On 16 April 2010 Lemminkäinen Corporation's Annual General Meeting approved the
Company's final accounts and consolidated financial statements for 2009 and
granted the members of the Board of Directors and the President & CEO discharge
from liability. The Annual General Meeting decided in accordance with the Board
of Directors' proposal that no dividend would be paid for the 2009 accounting
period.
The following persons were re-elected to serve on the Board of Directors: Berndt
Brunow, Juhani Mäkinen, Mikael Mäkinen, Kristina Pentti-von Walzel, Heikki Räty
and Teppo Taberman. PricewaterhouseCoopers Oy, a firm of authorised public
accountants, was re-elected to serve as the Company's auditors, with Jan
Holmberg, APA, acting as chief auditor.
Lemminkäinen Corporation's Board of Directors held an organising meeting on 16
April 2010. Berndt Brunow continues as the Chairman of the Board of Directors,
and Juhani Mäkinen as the Vice Chairman.
LEGAL PROCEEDINGS
In 2009 the Supreme Administrative Court (SAC) fined a number of Finnish asphalt
industry companies for violations of the Act on Competition Restrictions.
At present, 25 municipalities and the Finnish State (Finnish Transport Agency)
have brought actions for the recovery of damages from Lemminkäinen and other
asphalt companies in the District Court of Helsinki. The claimants contend that
restrictions of competition have caused them damages. The capital amount of the
claims presented against Lemminkäinen is at present about EUR 73 million. The
claims presented in the statements of claim differ from each other as regards
their amounts and grounds.
The decision rendered by the SAC in 2009 as it stands does not mean that
Lemminkäinen or the other asphalt industry companies actually caused the parties
ordering asphalt works any damages. The SAC's decision does not concern the
individual contracts that the claimants are citing in support of their claims.
Neither does the decision concern the pricing of individual contracts, nor has
the SAC considered the claim that pricing deviating from the market price had
been used in the contracts.
Lemminkäinen's initial position is that the claims are without foundation
The claims will be brought separately before the District Court of Helsinki and
heard in the order determined by the court. It is likely that district court
proceedings will continue into 2011.
No provision for future expense has been made in respect of the statements of
claims submitted so far to the district court by the municipalities and the
Finnish Road Administration.
Lemminkäinen will provide further updates on the matter in connection with
interim financial reviews or, if necessary, as separate releases.
RISKS AND UNCERTAINTIES
Lemminkäinen's business risks are divided into six categories: market risks,
project risks, financing risks, credit loss risks, environmental risks, and
accidents and damage. The measures necessary to manage the most significant
identified risks have been specified.
In the near future, market risk poses the most significant threat to
Lemminkäinen. The international economic downturn is creating uncertainty in key
sectors of Lemminkäinen's operating environment and making it more difficult to
foresee future changes. As a consequence of this, Lemminkäinen adjusted its
business operations to the new market demand at the end of 2008 and in 2009.
Although housing sales have developed favourably, the general economic situation
is still unstable. For this reason new housing starts are being made only if a
sufficiently high percentage of the units are reserved by buyers in advance.
Another risk are the aforementioned statements of claim submitted to the
District Court of Helsinki by certain municipalities and the Finnish Road
Administration.
Operating in a number of business sectors with differing cyclical behaviours is
a cornerstone of Lemminkäinen's strategy. Fluctuating demand for new
construction in Finland is counterbalanced by infrastructure construction. The
building repair and maintenance businesses account for a third of the Group's
business.
The Company's Annual Report and website provide more information on
Lemminkäinen's risk management.
OUTLOOK FOR 2010
In Finland low interest rates and improved consumer confidence will sustain good
demand for housing. Other building construction will remain at a low level.
Demand for renovation construction is expected to grow steadily.
In Russia the housing construction volumes continue to grow stably in 2010.
In the Nordic countries and Baltic states, total paving volumes will decline
from the 2009 levels. Major transport projects and the pick-up in mining
activity will support demand for infrastructure construction.
Demand for technical building services and building materials follows the
building construction cycle, and demand for these products and services is
expected to pick up gradually with the recovery of residential construction.
Lemminkäinen reiterates its guidance released on 15 October 2010, according to
which 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. Full-year 2010 net sales are estimated to be
at the 2009 level.
Lemminkäinen estimates that in 2011 its net sales will increase and pre-tax
profit will clearly improve on 2010.
EVENTS AFTER THE REVIEW PERIOD
After the review period Lemminkäinen acquired full ownership of Suonenjoen
Sementtituote Oy in Central Finland. The acquisition will strengthen
Lemminkäinen's pre-cast concrete element production resources. The net sales of
the acquired company are estimated to be approx. EUR 1.5 million in 2010.
According to preliminary plans, the company will merge with Lemminkäinen
Rakennustuotteet Oy in the first quarter of 2011.
In accordance with its strategy, Lemminkäinen is transitioning to a more
centralised operating model in its internal support services. As part of this
change in the operating model, Lemminkäinen initiated in early October, i.e.
after the review period, co-determination negotiations concerning a personnel
reduction of about 100 employees. Any personnel reductions arising from the
negotiations will be made during 2011.
Helsinki, 4 November 2010
LEMMINKÄINEN CORPORATION
Board of Directors
TABULATED SECTION OF THE INTERIM FINANCIAL REVIEW
ACCOUNTING PRINCIPLES
This interim financial review has been prepared in accordance with the same IFRS
recognition and measurement principles as those applied in the annual financial
statements for 2009 with the below-mentioned changes. As the tabulated section
is presented in abridged format, not all of the requirements of the IAS 34
Interim Financial Reporting Standard have been observed in the preparation of
the review.
The information contained in the interim financial review has not been audited.
The interpretation IFRIC 15 - Agreements for the Construction of Real Estate was
adopted from the beginning of 2010. The comparative figures starting from
1.1.2009 have also been calculated in accordance with the provisions of the new
interpretation. IFRIC 15 affected not only the figures of Lemminkäinen Group but
also those of the Building Construction business sector. Furthermore, Forssan
Betoni Oy, which formerly belonged to the Infrastructure Construction business
sector, was transferred at the beginning of January 2010 to the Building
Products business sector. The Group and business sector-specific figures given
in this bulletin are pro forma figures.
Standards and interpretations adopted from the beginning of 2010
- IFRIC 15. Agreements for the Construction of Real Estate. The interpretation
clarifies whether an agreement for the construction of real estate falls within
the scope of IAS 11 Construction Contracts or IAS 18 Revenue, and when income
from such construction projects can be recognised on the basis of percentage of
completion. In Lemminkäinen Group the new interpretation affects especially the
income recognition practice for own housing production, the basis of which
changed on 1 January 2010 from percentage-of-completion to full completion and
delivery.
- IFRIC 12 Service Concession Arrangements. The interpretation applies to
contractual arrangements whereby a private-sector operator participates in the
development, financing, operation of public services or the maintenance of
infrastructure.
- IFRS 3 (Revised), Business combinations. The revised standard continues to
apply the acquisition method to business combinations, with some significant
changes. For example, all costs directly associated with the transaction are to
be expensed as incurred. Contingent consideration is to be recorded at fair
value even if its realisation may be presumed unlikely at the transaction date.
Subsequent changes in contingent liabilities are recorded at fair value through
income, and not as an adjustment to goodwill, as was the practice before the
adoption of the interpretation. In a step acquisition, previously acquired
equity interests are recorded at fair value at the acquisition date. Goodwill
may be calculated based on the parent company's share of net assets or it may
include goodwill related to the non-controlling interest.
- IAS 27 (Revised), Consolidated and separate financial statements. The revised
standard requires the effects of all transactions with non-controlling interests
to be recorded in equity if there is no change in control. Thus, transactions
with non-controlling interests will no longer result in goodwill or the
recognition of gains or losses through profit or loss. The standard also
specifies the accounting when control is lost. Any remaining interest in the
entity is remeasured to fair value and a gain or loss is recognised through
profit or loss.
- IAS 17 (Revised), Leases. The revised standard requires the classification of
land areas as finance leasing or some other leasing agreements in accordance
with the general classification criteria of IAS 17. The revision does not have
any essential bearing on the figures presented in the Interim Financial Review.
An assessment indicates that the following interpretations and standards have no
essential bearing on Lemminkäinen Group's Interim Financial Review: IAS 1
(Revised), IAS 18 (Revised), IAS 38 (Revised), IAS 39 (Revised), IFRS 2
(Revised), IFRS 5 (Revised), IFRS 8 (Revised), IFRIC 9, IFRIC 16, IFRIC 17 and
IFRIC 18.
Effects of new interpretations of IFRS standards in the future
The standards and interpretations published by IASB and listed below will come
into force in 2011 or thereafter. The Group has decided against their early
adoption and will apply them in future accounting periods.
An assessment indicates that the following interpretations and standards have no
essential bearing on Lemminkäinen Group's financial statements: IAS 24
(Revised), IFRIC 14, IFRIC 19.
FINANCIAL STATEMENTS AND OTHER TABULATED INFORMATION
1) Consolidated income statement
2) Consolidated statement of comprehensive income
3) Consolidated statement of financial position
4) Consolidated cash flow statement
5) Consolidated statement of changes in equity
6) Consolidated income statement, quarterly
7) Segment information
8) Economic trends and financial indicators
9) Share-specific indicators
10) Guarantees and contingent liabilities
11) Legal proceedings
1) CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 610.4 | 568.6 | 1,373. | 1,440.4 | 1,965.5 |
| | | | 6 | | |
--------------------------------------------------------------------------------
| Operating income and expenses | -565. | -567.0 | -1,322 | -1,403. | -1,909. |
| | 7 | | .6 | 7 | 6 |
--------------------------------------------------------------------------------
| Depreciation | 13.6 | 12.5 | 27.9 | 26.7 | 34.3 |
--------------------------------------------------------------------------------
| Share of the results of | 1.7 | 1.1 | 1.2 | 1.1 | 1.5 |
| associates | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | 32.9 | -9.8 | 24.3 | 11.2 | 23.2 |
--------------------------------------------------------------------------------
| Financial expenses | 8.6 | 10.5 | 30.7 | 41.0 | 54.1 |
--------------------------------------------------------------------------------
| Financial income | 2.1 | 4.1 | 13.8 | 15.6 | 20.7 |
--------------------------------------------------------------------------------
| Profit/loss before taxes | 26.4 | -16.1 | 7.4 | -14.2 | -10.2 |
--------------------------------------------------------------------------------
| Income taxes | -6.7 | -8.1 | -4.3 | -10.3 | -13.6 |
--------------------------------------------------------------------------------
| Profit/loss for the | 19.7 | -24.2 | 3.1 | -24.5 | -23.8 |
| accounting period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the | | | | | |
| profit/loss for the | | | | | |
| accounting period | | | | | |
--------------------------------------------------------------------------------
| To shareholders of the parent | 20.1 | -24.0 | 2.9 | -25.5 | -26.2 |
| company | | | | | |
--------------------------------------------------------------------------------
| To non-controlling interest | -0.4 | -0.3 | 0.2 | 1.0 | 2.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from profit/loss attributable to | | | |
| parent company shareholders | | | |
--------------------------------------------------------------------------------
| Earnings per share, diluted | 1.08 | -1.41 | 0.15 | -1.49 | -1.54 |
| and undiluted, EUR | | | | | |
--------------------------------------------------------------------------------
2) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for the accounting | 19.7 | -24.2 | 3.1 | -24.5 | -23.8 |
| period | | | | | |
--------------------------------------------------------------------------------
| Translation difference | -1.5 | 1.6 | 2.3 | 2.1 | 3.4 |
--------------------------------------------------------------------------------
| Hedging of net investment | | | | | |
--------------------------------------------------------------------------------
| in foreign subsidiary | | 0.1 | | -0.4 | -0.4 |
--------------------------------------------------------------------------------
| Cash flow hedge | 0.3 | -0.1 | 0.2 | -0.5 | -0.2 |
--------------------------------------------------------------------------------
| Change in fair value | -0.1 | | 0.0 | | |
--------------------------------------------------------------------------------
| Other comprehensive income, | -1.3 | 1.7 | 2.6 | 1.2 | 2.8 |
| total | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income for the | 18.3 | -22.5 | 5.6 | -23.3 | -21.0 |
| accounting period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of comprehensive income | | | | |
| for the accounting period | | | | |
--------------------------------------------------------------------------------
| To shareholders of the parent | 18.7 | -22.2 | 5.5 | -24.3 | -23.4 |
| company | | | | | |
--------------------------------------------------------------------------------
| To non-controlling interest | -0.4 | -0.3 | 0.2 | 1.0 | 2.4 |
--------------------------------------------------------------------------------
3) CONSOLIDATED STATEMENT OF FINANCIAL POSITION
--------------------------------------------------------------------------------
| EUR mill. | 9/2010 | 9/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Tangible assets | 182.3 | 185.4 | 184.6 |
--------------------------------------------------------------------------------
| Goodwill | 83.9 | 77.7 | 78.3 |
--------------------------------------------------------------------------------
| Other intangible assets | 10.0 | 2.4 | 2.7 |
--------------------------------------------------------------------------------
| Investments | 14.2 | 12.7 | 12.8 |
--------------------------------------------------------------------------------
| Deferred tax asset | 20.1 | 16.5 | 14.3 |
--------------------------------------------------------------------------------
| Other non-current receivables | 7.2 | 6.8 | 7.5 |
--------------------------------------------------------------------------------
| Total | 317.6 | 301.4 | 300.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 386.3 | 429.1 | 374.7 |
--------------------------------------------------------------------------------
| Trade and other receivables | 449.7 | 479.9 | 305.1 |
--------------------------------------------------------------------------------
| Cash funds | 52.1 | 121.1 | 74.4 |
--------------------------------------------------------------------------------
| Total | 888.0 | 1,030.2 | 754.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets, total | 1,205.7 | 1,331.5 | 1,054.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share capital | 34.0 | 34.0 | 34.0 |
--------------------------------------------------------------------------------
| Share premium account | 5.8 | 5.8 | 5.8 |
--------------------------------------------------------------------------------
| Hedging reserve | -1.8 | -2.2 | -2.0 |
--------------------------------------------------------------------------------
| Fair value reserve | 0.0 | | |
--------------------------------------------------------------------------------
| Invested unrestricted equity reserve | 63.1 | | |
--------------------------------------------------------------------------------
| Translation differences | 0.6 | -3.0 | -1.7 |
--------------------------------------------------------------------------------
| Retained earnings | 225.6 | 261.6 | 261.6 |
--------------------------------------------------------------------------------
| Profit/loss for the period | 2.9 | -25.5 | -26.2 |
--------------------------------------------------------------------------------
| Equity attributable to shareholders of | 330.3 | 270.7 | 271.5 |
| the parent company | | | |
--------------------------------------------------------------------------------
| Non-controlling interest | 4.6 | 22.7 | 23.2 |
--------------------------------------------------------------------------------
| Shareholders' equity, total | 334.9 | 293.4 | 294.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 19.6 | 19.4 | 19.0 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.5 | 0.3 | 0.7 |
--------------------------------------------------------------------------------
| Provisions | 1.7 | 2.4 | 1.8 |
--------------------------------------------------------------------------------
| Financial liabilities | 222.2 | 58.4 | 290.7 |
--------------------------------------------------------------------------------
| Other liabilities | 3.9 | 2.4 | 2.4 |
--------------------------------------------------------------------------------
| Total | 248.0 | 82.9 | 314.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities | 384.5 | 497.9 | 328.4 |
--------------------------------------------------------------------------------
| Provisions | 7.3 | 7.2 | 8.3 |
--------------------------------------------------------------------------------
| Financial liabilities | 230.9 | 450.2 | 108.4 |
--------------------------------------------------------------------------------
| Total | 622.7 | 955.1 | 445.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities, | 1,205.7 | 1,331.5 | 1,054.4 |
| total | | | |
--------------------------------------------------------------------------------
4) CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss before taxes | 7.4 | -14.2 | -10.2 |
--------------------------------------------------------------------------------
| Depreciation | 27.9 | 26.7 | 34.3 |
--------------------------------------------------------------------------------
| Other adjustments | 9.1 | 24.3 | 33.9 |
--------------------------------------------------------------------------------
| Cash flow before change in working | 44.4 | 36.8 | 58.0 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in working capital | -92.0 | 2.2 | 52.4 |
--------------------------------------------------------------------------------
| Financial items | -21.9 | -23.3 | -30.2 |
--------------------------------------------------------------------------------
| Direct taxes paid | -12.7 | -19.2 | -16.0 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | -82.2 | -3.5 | 64.2 |
--------------------------------------------------------------------------------
| Cash flow provided by investing | 11.8 | 8.1 | 11.9 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow used in investing activities | -31.2 | -23.3 | -30.5 |
--------------------------------------------------------------------------------
| Share issue for cash consideration | 39.5 | | |
--------------------------------------------------------------------------------
| Change in non-current receivables | 0.3 | -0.5 | 0.0 |
--------------------------------------------------------------------------------
| Drawings of loans | 244.6 | 458.7 | 562.3 |
--------------------------------------------------------------------------------
| Repayments of loans | -201.1 | -548.6 | -764.6 |
--------------------------------------------------------------------------------
| Dividends paid | -2.1 | -18.0 | -18.0 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | 81.2 | -108.4 | -220.2 |
--------------------------------------------------------------------------------
| Change in cash funds | -20.4 | -127.0 | -174.6 |
--------------------------------------------------------------------------------
| Cash funds at beginning of period | 74.4 | 250.1 | 250.1 |
--------------------------------------------------------------------------------
| Translation difference of cash funds | -1.9 | -1.9 | -1.1 |
--------------------------------------------------------------------------------
| Cash funds at end of period | 52.1 | 121.1 | 74.4 |
--------------------------------------------------------------------------------
5) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A = Share capital
B = Share premium account
C = Hedging reserve
D = Fair value reserve
E = Invested unrestricted equity reserve
F = Translation difference
G = Retained earnings
H = Non-controlling interest
I = Shareholders' equity total
--------------------------------------------------------------------------------
| EUR | A | B | C | D | E | F | G | H | I |
| mill. | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2009 | 34.0 | 5.8 | -1.7 | | | -4.7 | 276.9 | 27.3 | 337. |
| | | | | | | | | | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/l | | | | | | | | | |
| oss for | | | | | | | | | |
| the | | | | | | | | | |
--------------------------------------------------------------------------------
| accounti | | | | | | | -25.5 | 1.0 | -24. |
| ng | | | | | | | | | 5 |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | 2.1 | | | 2.1 |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Hedging of net | | | | | | | | |
| investment | | | | | | | | |
--------------------------------------------------------------------------------
| in foreign | | | | | -0.4 | | | -0.4 |
| subsidiary | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | -0.5 | | | | | | -0.5 |
| flow | | | | | | | | | |
| hedge | | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income, | -0.5 | | | 1.7 | -25.5 | 1.0 | -23. |
| total | | | | | | | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend | | | | | | -15.3 | -2.0 | -17. |
| distribution | | | | | | | | 3 |
--------------------------------------------------------------------------------
| Change | | | | | | | | | |
| in | | | | | | | | | |
--------------------------------------------------------------------------------
| non-controlling | | | | | | | -3.6 | -3.6 |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Transact | | | | | | | | | |
| ions | | | | | | | | | |
| with | | | | | | | | | |
--------------------------------------------------------------------------------
| owners, | | | | | | | -15.3 | -5.6 | -20. |
| total | | | | | | | | | 9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| 30.9.200 | 34.0 | 5.8 | -2.2 | | | -3.0 | 236.1 | 22.7 | 293. |
| 9 | | | | | | | | | 4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR | A | B | C | D | E | F | G | H | I |
| mill. | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2009 | 34.0 | 5.8 | -1.7 | | | -4.7 | 276.9 | 27.3 | 337. |
| | | | | | | | | | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/l | | | | | | | | | |
| oss for | | | | | | | | | |
| the | | | | | | | | | |
--------------------------------------------------------------------------------
| accounti | | | | | | | -26.2 | 2.4 | -23. |
| ng | | | | | | | | | 8 |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | 3.4 | | | 3.4 |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Hedging of net | | | | | | | | |
| investment | | | | | | | | |
--------------------------------------------------------------------------------
| in foreign | | | | | -0.4 | | | -0.4 |
| subsidiary | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | -0.2 | | | | | | -0.2 |
| flow | | | | | | | | | |
| hedge | | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income, | -0.2 | | | 3.0 | -26.2 | 2.4 | -21. |
| total | | | | | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend | | | | | | -15.3 | -2.0 | -17. |
| distribution | | | | | | | | 3 |
--------------------------------------------------------------------------------
| Change | | | | | | | | | |
| in | | | | | | | | | |
--------------------------------------------------------------------------------
| non-controlling | | | | | | | -4.5 | -4.5 |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Transact | | | | | | | | | |
| ions | | | | | | | | | |
| with | | | | | | | | | |
--------------------------------------------------------------------------------
| owners, | | | | | | | -15.3 | -6.5 | -21. |
| total | | | | | | | | | 8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| 31.12.20 | 34.0 | 5.8 | -2.0 | | | -1.7 | 235.4 | 23.2 | 294. |
| 09 | | | | | | | | | 8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR | A | B | C | D | E | F | G | H | I |
| mill. | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2010 | 34.0 | 5.8 | -2.0 | | | -1.7 | 235.4 | 23.2 | 294. |
| | | | | | | | | | 8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/l | | | | | | | | | |
| oss for | | | | | | | | | |
| the | | | | | | | | | |
--------------------------------------------------------------------------------
| accounti | | | | | | | 2.9 | 0.2 | 3.1 |
| ng | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | 2.3 | | | 2.3 |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | 0.2 | | | | | | 0.2 |
| flow | | | | | | | | | |
| hedge | | | | | | | | | |
--------------------------------------------------------------------------------
| Change in fair | | | 0.0 | | | | | 0.0 |
| value | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income, | 0.2 | 0.0 | | 2.3 | 2.9 | 0.2 | 5.6 |
| total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share issue to | | | | | | | | |
| investors | | | | | | | | |
--------------------------------------------------------------------------------
| for cash | | | | 39.5 | | | | 39.5 |
| consideration | | | | | | | | |
--------------------------------------------------------------------------------
| Share issue to | | | | | | | |
| non-controlling | | | | | | | |
--------------------------------------------------------------------------------
| interest for cash | | | 24.3 | | | | 24.3 |
| consideration | | | | | | | |
--------------------------------------------------------------------------------
| Transaction | | | | | | | | |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| of share | | | | | -0.7 | | | | -0.7 |
| issues | | | | | | | | | |
--------------------------------------------------------------------------------
| Gains on | | | | | | | | |
| share-based | | | | | | | | |
--------------------------------------------------------------------------------
| payments | | | | | | | 0.1 | | 0.1 |
--------------------------------------------------------------------------------
| Direct entries, | | | | | -10.0 | | -10. |
| non-controlling | | | | | | | 0 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| acquisit | | | | | | | 0.1 | | 0.1 |
| ion | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | | -1.9 | -1.9 |
| distribution | | | | | | | | |
--------------------------------------------------------------------------------
| Change | | | | | | | | | |
| in | | | | | | | | | |
--------------------------------------------------------------------------------
| non-controlling | | | | | | | -16.9 | -16. |
| interest | | | | | | | | 9 |
--------------------------------------------------------------------------------
| Transact | | | | | | | | | |
| ions | | | | | | | | | |
| with | | | | | | | | | |
--------------------------------------------------------------------------------
| owners, | | | | | 63.1 | | -9.8 | -18.8 | 34.5 |
| total | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| 30.9.201 | 34.0 | 5.8 | -1.8 | 0.0 | 63.1 | 0.6 | 228.5 | 4.6 | 334. |
| 0 | | | | | | | | | 9 |
--------------------------------------------------------------------------------
6) CONSOLIDATED INCOME STATEMENT, QUARTERLY
--------------------------------------------------------------------------------
| | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2010 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 610.4 | 478.8 | 284.4 | 525.1 | 568.6 |
--------------------------------------------------------------------------------
| Operating income and expenses | -565. | -449.0 | -308.0 | -505.9 | -567.0 |
| | 7 | | | | |
--------------------------------------------------------------------------------
| Depreciation | 13.6 | 9.6 | 4.7 | 7.6 | 12.5 |
--------------------------------------------------------------------------------
| Share of the results of | 1.7 | -0.2 | -0.2 | 0.4 | 1.1 |
| associates | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | 32.9 | 20.0 | -28.5 | 12.0 | -9.8 |
--------------------------------------------------------------------------------
| Financial expenses | 8.6 | 10.0 | 12.1 | 13.1 | 10.5 |
--------------------------------------------------------------------------------
| Financial income | 2.1 | 5.0 | 6.7 | 5.2 | 4.1 |
--------------------------------------------------------------------------------
| Profit/loss before taxes | 26.4 | 15.0 | -33.9 | 4.0 | -16.1 |
--------------------------------------------------------------------------------
| Income taxes | -6.7 | -5.2 | 7.6 | -3.3 | -8.1 |
--------------------------------------------------------------------------------
| Profit/loss for the accounting | 19.7 | 9.8 | -26.4 | 0.7 | -24.2 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the | | | | | |
| profit/loss for the accounting | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| To shareholders of the parent | 20.1 | 9.5 | -26.7 | -0.7 | -24.0 |
| company | | | | | |
--------------------------------------------------------------------------------
| To non-controlling interests | -0.4 | 0.3 | 0.3 | 1.4 | -0.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from profit/loss attributable to | | | |
| parent company shareholders | | | |
--------------------------------------------------------------------------------
| Earnings per share, diluted | 1.08 | 0.60 | -1.52 | -0.04 | -1.41 |
| and undiluted, EUR | | | | | |
--------------------------------------------------------------------------------
7) SEGMENT INFORMATION
IFRS 8 Operating Segment Reporting requires that reported segment information be
based on internal segment reporting to management, which in Lemminkäinen Group
means the President of Lemminkäinen Corporation, who is the chief operative
decision-maker. Internal segment reporting to management covers net sales,
depreciation, operating profit, non-current assets, inventories and trade
receivables.
The segment information reported to management is generally prepared according
to the same principles as those applied in the consolidated financial
statements. Imputed items are not considered in segment reporting. Such items
include, among others, depreciation of assets acquired by finance leasing,
interest separated from payments and warranty provisions. In segment reporting
to management, finance leasing arrangements are treated as ordinary rental
agreements, which deviate from the accounting principles of IFRS financial
statements. Associated companies are combined in segment reporting in proportion
to ownership share using the line-by-line method. In IFRS financial statements
associated companies are combined by the equity method. In segment reporting,
intersegment sales are not allocated to segments, owing to their minimal
magnitude, and are not reported to management.
The interpretation IFRIC 15 - Agreements for the Construction of Real Estate was
adopted from the beginning of 2010. The comparative figures starting from
1.1.2009 have also been calculated in accordance with the provisions of the new
interpretation. IFRIC 15 affected not only the figures of Lemminkäinen Group but
also those of the Building Construction business sector. Furthermore, Forssan
Betoni Oy, which formerly belonged to the Infrastructure Construction business
sector, was transferred at the beginning of January 2010 to the Building
Products business sector. The Group and business sector-specific figures given
in this bulletin are pro forma figures.
BLDCO = Building Construction
INFRA = Infrastructure Construction
TECBS = Technical Building Services
BLDPR = Building Products
OTHER = Other operations
ELIM = Group eliminations
SEGM = Segments total
RECON = Reconciling items
TOTAL = Group total, IRFS
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | | | |
--------------------------------------------------------------------------------
| 1-9/2010 | BLDC | INFR | TECB | BLDP | OTHE | ELI | SEGM | RECON | TOTAL |
| | O | A | S | R | R | M | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 552. | 591. | 165. | 115. | 8.5 | -51 | 1,382. | -8.7 | 1,373. |
| | 4 | 9 | 1 | 5 | | .1 | 3 | | 6 |
--------------------------------------------------------------------------------
| Depreciat | 1.8 | 23.8 | 0.7 | 2.5 | 0.8 | | 29.5 | -1.6 | 27.9 |
| ion | | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 10.6 | 17.2 | 3.2 | 2.9 | -11. | | 23.0 | 1.3 | 24.3 |
| profit/lo | | | | | 0 | | | | |
| ss | | | | | | | | | |
--------------------------------------------------------------------------------
The reconciling items for net sales comprise EUR -13.0 million from the equity
share treatment of associated companies and the treatment difference between
entries made to net sales and other income.
The reconciling items for operating profit comprise EUR 3.8 million in personnel
expenses, EUR 1.8 million from the IFRS treatment of finance leasing, EUR -0.2
million from the equity share treatment of associated companies and EUR -4.1
million in other closing entries.
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | | | |
--------------------------------------------------------------------------------
| 1-9/2009 | BLDC | INFR | TECB | BLDP | OTHE | ELI | SEGM | RECON | TOTAL |
| | O | A | S | R | R | M | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 602. | 594. | 168. | 115. | 8.3 | -33 | 1,455. | -15.2 | 1,440. |
| | 4 | 4 | 6 | 3 | | .3 | 6 | | 4 |
--------------------------------------------------------------------------------
| Depreciat | 2.1 | 23.1 | 0.6 | 2.6 | 0.6 | | 29.0 | -2.3 | 26.7 |
| ion | | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 21.7 | 27.8 | 9.0 | 8.6 | -58. | | 8.9 | 2.3 | 11.2 |
| profit/lo | | | | | 3 | | | | |
| ss | | | | | | | | | |
--------------------------------------------------------------------------------
The reconciling items for net sales comprise EUR -12.9 million from the equity
share treatment of associated companies and the treatment difference between
entries made to net sales and other income.
The reconciling items for operating profit comprise EUR 1.3 million in personnel
expenses, EUR 1.4 million from the IFRS treatment of finance leasing, EUR 0.0
million from the equity share treatment of associated companies and EUR 0.4
million in other closing entries.
--------------------------------------------------------------------------------
| NET SALES | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building Construction | 552.4 | 602.4 | 868.7 |
--------------------------------------------------------------------------------
| Infrastructure Construction | 591.9 | 594.4 | 768.0 |
--------------------------------------------------------------------------------
| Technical Building Services | 165.1 | 168.6 | 233.8 |
--------------------------------------------------------------------------------
| Building Products | 115.5 | 115.3 | 154.2 |
--------------------------------------------------------------------------------
| Other operations | 8.5 | 8.3 | 10.3 |
--------------------------------------------------------------------------------
| Group eliminations | -51.1 | -33.3 | -52.5 |
--------------------------------------------------------------------------------
| Segments total | 1,382.3 | 1,455.6 | 1,982.6 |
--------------------------------------------------------------------------------
| Reconciling items | -8.7 | -15.2 | -17.1 |
--------------------------------------------------------------------------------
| Group total, IFRS | 1,373.6 | 1,440.4 | 1,965.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building Construction | 10.6 | 21.7 | 36.4 |
--------------------------------------------------------------------------------
| Infrastructure Construction | 17.2 | 27.8 | 22.0 |
--------------------------------------------------------------------------------
| Technical Building Services | 3.2 | 9.0 | 12.2 |
--------------------------------------------------------------------------------
| Building Products | 2.9 | 8.6 | 10.4 |
--------------------------------------------------------------------------------
| Other operations | -11.0 | -58.3 | -61.7 |
--------------------------------------------------------------------------------
| Segments total | 23.0 | 8.9 | 19.4 |
--------------------------------------------------------------------------------
| Reconciling items | 1.3 | 2.3 | 3.8 |
--------------------------------------------------------------------------------
| Group total, IFRS | 24.3 | 11.2 | 23.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES, QUARTERLY | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2010 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building Construction | 214.5 | 169.2 | 168.7 | 266.3 | 180.1 |
--------------------------------------------------------------------------------
| Infrastructure Construction | 314.6 | 226.0 | 51.3 | 173.6 | 304.3 |
--------------------------------------------------------------------------------
| Technical Building Services | 55.1 | 55.8 | 54.2 | 65.2 | 52.6 |
--------------------------------------------------------------------------------
| Building Products | 50.5 | 44.7 | 20.3 | 38.9 | 48.8 |
--------------------------------------------------------------------------------
| Other operations | 2.8 | 2.9 | 2.8 | 2.1 | 2.9 |
--------------------------------------------------------------------------------
| Group eliminations | -23.1 | -15.8 | -12.2 | -19.2 | -8.8 |
--------------------------------------------------------------------------------
| Segments total | 614.5 | 482.6 | 285.2 | 526.9 | 579.9 |
--------------------------------------------------------------------------------
| Reconciling items | -4.1 | -3.8 | -0.8 | -1.8 | -11.3 |
--------------------------------------------------------------------------------
| Group total, IFRS | 610.4 | 478.8 | 284.4 | 525.1 | 568.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS, | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ |
| QUARTERLY | | | | | |
--------------------------------------------------------------------------------
| EUR mill. | 2010 | 2010 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building Construction | 2.7 | 6.7 | 1.2 | 14.7 | 1.2 |
--------------------------------------------------------------------------------
| Infrastructure Construction | 28.0 | 13.5 | -24.3 | -5.8 | 33.3 |
--------------------------------------------------------------------------------
| Technical Building Services | 1.7 | 0.4 | 1.1 | 3.2 | 3.8 |
--------------------------------------------------------------------------------
| Building Products | 3.2 | 3.4 | -3.7 | 1.8 | 6.1 |
--------------------------------------------------------------------------------
| Other operations | -3.9 | -3.7 | -3.4 | -3.4 | -56.0 |
--------------------------------------------------------------------------------
| Segments total | 31.8 | 20.3 | -29.1 | 10.5 | -11.5 |
--------------------------------------------------------------------------------
| Reconciling items | 1.1 | -0.3 | 0.6 | 1.5 | 1.8 |
--------------------------------------------------------------------------------
| Group total, IFRS | 32.9 | 20.0 | -28.5 | 12.0 | -9.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| EUR mill. | 9/2010 | 9/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building Construction | 428.6 | 420.6 | 357.9 |
--------------------------------------------------------------------------------
| Infrastructure Construction | 353.3 | 357.5 | 253.9 |
--------------------------------------------------------------------------------
| Technical Building Services | 31.2 | 30.1 | 30.5 |
--------------------------------------------------------------------------------
| Building Products | 65.9 | 61.5 | 55.3 |
--------------------------------------------------------------------------------
| Other operations | 44.3 | 45.4 | 43.6 |
--------------------------------------------------------------------------------
| Segments total | 923.2 | 915.2 | 741.1 |
--------------------------------------------------------------------------------
| Assets unallocated to segments | | | |
--------------------------------------------------------------------------------
| and Group eliminations, total | 282.5 | 416.3 | 313.3 |
--------------------------------------------------------------------------------
| Group total, IFRS | 1,205.7 | 1,331.5 | 1,054.4 |
--------------------------------------------------------------------------------
8) ECONOMIC TRENDS AND FINANCIAL INDICATORS
--------------------------------------------------------------------------------
| | 9/2010 | 9/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | 1.0 | -7.8 | -7.5 |
--------------------------------------------------------------------------------
| Return on investment, % | 5.1 | 3.1 | 5.4 |
--------------------------------------------------------------------------------
| Operating profit, % of net sales | 1.8 | 0.8 | 1.2 |
--------------------------------------------------------------------------------
| Equity ratio, % | 30.8 | 24.4 | 31.0 |
--------------------------------------------------------------------------------
| Gearing, % | 119.7 | 132.1 | 110.2 |
--------------------------------------------------------------------------------
| Interest-bearing net debt, EUR million | 401.0 | 387.5 | 324.7 |
--------------------------------------------------------------------------------
| Gross investments, EUR million (incl. | 44.5 | 32.4 | 41.5 |
| leasing purchases) | | | |
--------------------------------------------------------------------------------
| Order book, EUR mill. | 1,230.0 | 1,096.1 | 1,064.5 |
--------------------------------------------------------------------------------
| - of which orders outside Finland, EUR | 252.3 | 296.6 | 224.4 |
| mill. | | | |
--------------------------------------------------------------------------------
| Average number of employees | 8,339 | 8,761 | 8,626 |
--------------------------------------------------------------------------------
| Employees at end of period | 8,920 | 9,010 | 7,759 |
--------------------------------------------------------------------------------
| Net sales, EUR mill. | 1,373.6 | 1,440.4 | 1,965.5 |
--------------------------------------------------------------------------------
| - of which operations outside Finland, | 416.5 | 392.5 | 527.6 |
| EUR mill. | | | |
--------------------------------------------------------------------------------
| % of net sales | 30.3 | 27.2 | 26.8 |
--------------------------------------------------------------------------------
9) SHARE-SPECIFIC INDICATORS
--------------------------------------------------------------------------------
| | 9/2010 | 9/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.15 | -1.49 | -1.54 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 16.81 | 15.90 | 15.95 |
--------------------------------------------------------------------------------
| Market capitalisation, EUR mill. | 485.2 | 451.1 | 411.9 |
--------------------------------------------------------------------------------
| Share price at end of period, EUR | 24.70 | 26.50 | 24.20 |
--------------------------------------------------------------------------------
| Trading volume during period, 1000 shares | 3,167 | 1,238 | 1,918 |
--------------------------------------------------------------------------------
| Number of issued shares, 1000 shares | 19,645 | 17,021 | 17,021 |
--------------------------------------------------------------------------------
| Weighted average number of shares over the | 19,645 | 17,021 | 17,021 |
| period, 1000 shares | | | |
--------------------------------------------------------------------------------
10) GUARANTEES AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| EUR mill. | 9/2010 | 9/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Securities for own commitments | | | |
--------------------------------------------------------------------------------
| Property mortgages | 80.0 | 80.0 | 80.0 |
--------------------------------------------------------------------------------
| Business mortgages | 1,218.8 | 1,218.8 | 1,221.3 |
--------------------------------------------------------------------------------
| Bonds pledged as security | 0.3 | 0.4 | 0.6 |
--------------------------------------------------------------------------------
| Deposits | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Total | 1,299.2 | 1,299.3 | 1,302.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarantees | | | |
--------------------------------------------------------------------------------
| On behalf of others | 9.8 | 37.9 | 34.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Bonds pledged as security | | | |
--------------------------------------------------------------------------------
| On behalf of others | 0.1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minimum lease payments of irrevocable lease | | |
| agreements | | |
--------------------------------------------------------------------------------
| One year or less | 16.7 | 12.2 | 11.1 |
--------------------------------------------------------------------------------
| Over one year but no more than five | 30.5 | 25.1 | 24.9 |
| years | | | |
--------------------------------------------------------------------------------
| Over five years | 18.5 | 20.8 | 20.7 |
--------------------------------------------------------------------------------
| Total | 65.7 | 58.0 | 56.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase commitments of investments | 4.6 | 8.1 | 11.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative contracts | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Forward foreign exchange contracts | | | |
--------------------------------------------------------------------------------
| Nominal value | 54.6 | 40.6 | 36.6 |
--------------------------------------------------------------------------------
| Fair value | 1.6 | -0.8 | -1.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency options, calls purchased | | | |
--------------------------------------------------------------------------------
| Nominal value | 0.0 | 2.0 | 0.0 |
--------------------------------------------------------------------------------
| Fair value | 0.0 | 0.2 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency options, puts written | | | |
--------------------------------------------------------------------------------
| Nominal value | 0.0 | 2.0 | 0.0 |
--------------------------------------------------------------------------------
| Fair value | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options, calls purchased | | | |
--------------------------------------------------------------------------------
| Nominal value | 0.0 | 0.8 | 0.0 |
--------------------------------------------------------------------------------
| Fair value | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options, puts written | | | |
--------------------------------------------------------------------------------
| Nominal value | 0.0 | 0.8 | 0.0 |
--------------------------------------------------------------------------------
| Fair value | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate swap contracts | | | |
--------------------------------------------------------------------------------
| Nominal value | 53.8 | 65.3 | 59.6 |
--------------------------------------------------------------------------------
| Fair value | -2.4 | -3.8 | -3.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity derivatives | | | |
--------------------------------------------------------------------------------
| Volume, mill. | 25.3 | | |
--------------------------------------------------------------------------------
| Fair value, € | -0.4 | | |
--------------------------------------------------------------------------------
The fair value of contracts is the gain or loss arising from closure of the
contract based on the market price on the accounting date.
11) LEGAL PROCEEDINGS
In 2009 the Supreme Administrative Court (SAC) fined a number of Finnish asphalt
industry companies for violations of the Act on Competition Restrictions.
At present, 29 municipalities and the Finnish State (Finnish Transport Agency)
have brought actions for the recovery of damages from Lemminkäinen and other
asphalt companies in the District Court of Helsinki. The claimants contend that
restrictions of competition have caused them damages. The capital amount of the
claims presented against Lemminkäinen is at present about EUR 73 million. The
claims presented in the statements of claim differ from each other as regards
their amounts and grounds.
The decision rendered by the SAC in 2009 as it stands does not mean that
Lemminkäinen or the other asphalt industry companies actually caused the parties
ordering asphalt works any damages. The SAC's decision does not concern the
individual contracts that the claimants are citing in support of their claims.
Neither does the decision concern the pricing of individual contracts, nor has
the SAC considered the claim that pricing deviating from the market price had
been used in the contracts.
Lemminkäinen's initial position is that the claims are without foundation
The claims will be brought separately before the District Court of Helsinki and
heard in the order determined by the court. It is likely that district court
proceedings will continue into 2011.
No provision for future expense has been made in respect of the statements of
claims submitted so far to the district court by the municipalities and the
Finnish Road Administration.
Lemminkäinen will provide further updates on the matter in connection with
interim financial reviews or, if necessary, as separate releases.