Interim report for the third quarter, 2005

Transcription

1 int e r i m re p o r t 2 5 Interim report for the third quarter, 25 THE LINDAB GROUP REVENUES DURING THE QUARTER INCREASED BY 13 PERCENT OPERATING PROFIT (EBITA), EXCLUDING ONE-TIME ITEMS INCREASED BY 34 PERCENT TO 226 (169) COMPLETED SALE AND LEASEBACK OF REAL ESTATE REDUCED NET DEBT BY 188 SALES, Oct-Dec Jan-Mar 25 Apr-Jun Rolling 12 month OPERATING PROFIT (EBITA), Supermarket Arendal, Norway Rotary diffuser Ceiling diffusers for heating and cooling Oct-Dec Jan-Mar Apr-Jun Rolling 12 month

2 interim report 25 The Lindab Group SALES AND MARKET Sales during the third quarter amounted to 1,685, an increase of 13 percent compared to the previous year. The increase of sales for comparable units was 6.3 percent. The Astron group was consolidated on 1 September, which contributed positively to the increase in sales. The Nordic market continues to be strong in most of these countries. The construction market has been generally strong for just over a year, although demand has primarily been positive in the residential and civil engineering sectors. There have been several indications in the most recent quarter that the commercial sector is also showing growth. Sales in Central and Eastern Europe, which showed a weaker development during the second quarter, are once again showing good growth. The development in Western Europe is following the trend from the previous quarters. Demand remains weak, although the Lindab Group has shown some sales growth. Sales for the first nine months of 25 amounted to 4,36 (4,9), which is an increase of 6.6 percent. With sales adjusted for acquisitions/divestments, the increase in sales amounts to 6.2 percent. EARNINGS The operating profit for the third quarter amounted to 236, which is an increase of 4 percent compared to 24 s operating profit of 169. During the quarter, real estate were sold, resulting in capital gains of 5. In addition a restructuring reserve of 4 was recorded for the Ventilation business area. This reserve concerns a cost-reduction programme primarily for the European and US production units. When these one-time items are adjusted for, the operating profit amounts to 226, an improvement of 34 percent. Astron was consolidated on 1 September and has contributed positively to the earnings trend. Operating margins excluding one-time items amounted to 13.4 percent during the quarter, an improvement of 2.1 percentage units compared to the same period in the previous year. Profit after net interest expense, adjusted for one-time items, increased to 27 (147). Operating profit excluding one-time items for the January- September period amounted to 376 (287). NET DEBT AND FINANCIAL POSITION Net debt - the difference between interest-bearing assets and interest-bearing liabilities - amounted to 2,17 (2,92) at the end of September 25; the equity/assets ratio was 4 percent (4). The debt/equity ratio amounted to.79 (.9) on 3 September 25. The net interest expense for the quarter amounted to 19 ( 22). The net interest expense for the year s first nine months amounted to 56 ( 68). CASH FLOW The operating cash flow for the quarter amounted to 378. Astron was acquired during the first quarter, affecting cash flow by 75. In addition, a sale and lease-back transaction for properties was completed in August, which reduced the net debt by 188. The cash flow amounted to 139 when these transactions are adjusted for. In the corresponding period the previous year, the cash flow was 12, which had been negatively affected by rising steel prices. The operative cash flow for the year s first nine months amounted to 25 (41). Adjusting the cash flow for the acquisition of Astron and the sales of real estate amounts to a cash flow of 312. The previous year s cash flow of 41 included conveyance of parts of Folke in Borlänge (Sweden), which was sold during the second quarter of 24. This year s improved cash flow is primarily explained by the lower stock levels; the stocks have been reduced by 138 for comparable units. INVESTMENTS Investments during the quarter were 459. Adjusting investments for the acquisition of Astron and the sale of real estate amounts to net investments of 27. Investments primarily concern expansion and investments in maintenance. Total depreciation and amortisation for the quarter amount to 5 (47). COMPANY ACQUISITION Astron Building SA has been acquired to strengthen the position on the European prefabricated steel building market and to create growth within one of the defined core product areas. The acquisition will make Lindab Europe s leading player in the area of prefabricated steel buildings. Geographically the acquisition complements Lindab s steel building business extremely well. During the last financial year Astron had a turnover of MEUR 115 with operating profit of MEUR 9. Sales in Central and Eastern Europe have grown drastically in recent years and now account for approximately 5 percent of the total turnover. Astron employs a workforce of 65, and has production facilities in Luxemburg and the Czech Republic. The purchase price amounted to MEUR 74.5, free of debt. PERSONNEL The number of employees at the end of the quarter was 4,12 compared with 3,75 for the same point in time in 24. This increase includes 65 employees from the acquisition of Astron. Ventilation has seen a decrease in the number of employees by 146 people. This reduction is primarily due to rationalizations in production in Germany and the US.

3 interim report 25 INCOME STATEMENT, GROUP ACCORDING TO IFRS Sales Cost of goods sold CONTRIBUT. MARGIN Production overheads CONTRIBUT. MARGIN Selling expenses Administration expenses R&D costs Other operating income Other operating expenses EBITDA Depreciation EBITA Amortisation of goodwill EBIT Interest income Interest expenses Other financial income and expenses EBT Paid tax Deferred tax NET PROFIT CASH FLOW STATEMENT, GROUP Operating activities Operating profit Depreciation and amortisation CASH FLOW FROM OPERATIONS Financial items Paid tax CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL Change in working capital CASH FLOW FROM OPERATING ACTIVITIES Investments, net CASH FLOW AFTER INVESTING ACTIVITIES Other items NET CASH FLOW Changes in interest-bearing liabilities Change in liquid funds BALANCE SHEET, GROUP, ACCORDING TO IFRS ASSETS Intangible fixed assets Tangible fixed assets Financial fixed assets Fin. fixed assets int.-bearing Other long-term receivables Stock Other receivables Other receivables, int.-bearing Cash and bank TOTAL ASSETS SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity Interest-bearing provisions Non interest-bearing provisions Long-term liabilities Interest-bearing liabilities Current liabilities Interest-bearing liabilities Non interest-bearing liabilities TOTAL SHAREHOLDERS EQUITY AND LIABILITIES KEY FIGURES Operating margin, percent 1,2) Earnings per share, SEK 3) Cash flow, Debt/equity ratio, times 4).79.9 Equity per share, SEK Equity/assets ratio, percent 5) Shares in issue: 1 Definitions: 1) Operating profit comprises earnings after depreciation according to plan excluding goodwill (EBITA). 2) The operating margin has been calculated as EBITA expressed as a percentage of sales during the period. 3) Net profit in relation to number of shares in issue. 4) Debt/equity ratio - the difference between net debt - in relation to shareholders equity. 5) The equity/assets ratio has been calculated as shareholders equity as a percentage of total assets as per the balance sheet.

4 interim report 25 SALES BY MARKET The Nordic region Western Europe Central- and Eastern Europe USA Other markets TOTAL SALES GROUP, Jan-Sep Jan-Sep Demand improved in the Nordic countries during the quarter. Demand remains weak in Western Europe. Demand in Central and Eastern Europe was somewhat weaker during the second quarter. This, however, was only temporary. Sales for comparable units in the Central and Eastern Europe have grown by 14 percent during the third quarter. In the USA the commercial building and construction market is still in a wait-and-see phase. SALES BY BUSINESS AREA Ventilation Profile Other activities TOTAL SALES VENTILATION, Ventilation includes Ventilation Europe, Ventilation USA and the machinery manufacturer Spiro/Spiral-Helix. Other activities include joint group responsibilities as well as Folke Perforering AB Jan-Sep Jan-Sep OPERATING PROFIT BY BUSINESS AREA Ventilation Profile Other activities One-time items 1 1 TOTAL Operating profit (EBITA) include profits after depreciations excluding goodwill. During the quarter 4 were reserved within Ventilation for restructuring of production units. A sale and lease-back transaction for real estate was completed in August, resulting in capital gains of 5. These transactions were reported as one-time items. SALES PROFILE, Jan-Sep Jan-Sep 24 25

5 interim report 25 Business areas VENTILATION CONTINUED STRONG ACTIVITY IN THE NORDIC NATIONS PRODUCTION RATIONALIZATIONS CARRIED OUT STRONG OPERATING PROFITS DURING THE QUARTER PROFILE CENTRAL AND EASTERN EUROPE ONCE AGAIN SHO- WED STRONG GROWTH DURING THE THIRD QUARTER ASTRON HAD A GOOD FIRST MONTH, INCLUDING GOOD EARNINGS PERFORMANCE VENTILATION Sales Operating profit *85 58 * Number of employees PROFILE Sales Operating profit Number of employees * excluding restructuring reserve of 4 SALES BY MARKET Central and Estern Europe USA Other markets Nordic region SALES BY MARKET Central and Eastern Europe Other markets Nordic region Western Europe Western Europe SALES BY PRODUCT AREA Machinery Comfort Accessories SALES BY PRODUCT AREA Doorline Construline Rainline Building Systems Air Duct System Accessories Coverline SALES AND MARKET Sales during the third quarter increased by 3 percent. Activity remains strong in the Nordic countries, and construction is showing a positive trend. Western Europe has a weak market demand, although Lindab is maintaining its sales volume. Central and Eastern Europe are developing positively, although the volumes are rather small. Demand for commercial constructions is still weak in the US. EARNINGS The operating profit prior to the one-time items for the quarter amounted to 85. A restructuring reserve of 4 concerning production structure rationalizations was recorded during September. The positive effects on earnings from the programme will be seen successively during 26. Operating margins during the quarter amounted to 1.3 percent, an improvement of 3.1 percent compared with the previous year. The focus on the cost structure and core products, duct systems, has led to improved earnings. SALES AND MARKET Sales during the quarter increased by 25 percent; the sales increase for comparable units was 1 percent. The Central and Eastern European growth market is again showing a good, organic growth. At the same time, the acquisition of Astron conveys new opportunities to develop this market. The Nordic market, which is so important for this business area, continues to show stable, positive growth. EARNINGS Operating profit amounted to 141 during the quarter, which remains a high level of profitability. A continued positive earnings trend in the majority of the product groups, as well as the acquisition of Astron, explains the improved results.

6 interim report 25 ACCOUNTING POLICIES This report was compiled in compliance with IAS 34, Interim Financial Reporting. The interim report for the third quarter 25 is the third financial report that has been presented in accordance with IFRS for Lindab. The reporting of Company Acquisitions (IFRS 3), Intangible Assets (IAS 38), and Financial Leasing (IAS 17) differ considerably from previous reporting and IFRS. Had IFRS been applied in 24, the following changes would have affected earnings and equity: Full year Full year RR IFRS Operating profit (EBITA) Operating profit after goodwill amortization (EBIT) Profit after financial items (EBT) Net result Shareholders equity including minority interests Jan-Sep Jan-Sep RR IFRS Operating profit (EBITA) Operating profit after goodwill amortization (EBIT) Profit after financial items (EBT) Net result Shareholders equity including minority interests BUSINESS CONCEPT Lindab develops, manufactures, markets and distributes products and system solutions in sheet metal for indoor climate enhancement and simplified building construction. The business is carried out within two business areas, Ventilation and Profile and with products that are characterized by high quality, ease of installation, energy efficiency and environmental awareness and are sold with a high level of service, all of which increase customer value. THIS IS LINDAB The Lindab group generated sales of 5,477 in 24 and is established in 26 countries and has approx. 3,7 employees. The Ventilation business area is directed towards the ventilation industry with components and system solutions. Principal products can be found within the sectors of round duct systems and comfort. The Profile business area focuses on the construction sector, offering a range of steel components for building construction. Products such as roof drainage components, profiled sheet metal, wall studs and steel frames are delivered to commercial and industrial buildings. Principle owners in Lindab Intressenter AB are Ratos, Sjätte AP-fonden and Skandia Liv. This report has not been audited by Lindab s auditors. DATE FOR FINANCIAL REPORTING FOR 25/26 Year-end report February 26 CONTACTS Kjell Åkesson, CEO Phone , kjell.akesson@lindab.com Nils-Johan Andersson, CFO Phone , nils-johan.andersson@lindab.com Changes in revenues mainly concern a missing goodwill amortisation of 121 for the full year 24 and by 93 for the period January-September. Financial leasing (IAS 17) reduced equity by 67 and increased fixed assets by 245 for the full-year 24 and for Quarter 3, equity decreased by 64 and fixed assets increased by 25. Lindab Intressenter AB SE Båstad Telephone +46 () Telefax +46 () lindab@lindab.com Lindab Intressenter AB with headquarters in Båstad Org.Reg.No