Quarterly Report • Apr 29, 2011
Quarterly Report
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In the first quarter sales and operating profit (EBIT) improved for the third successive quarter confirming the positive trend.
" Lindab's President and CEO, The sales growth of 19 percent in the quarter is satisfying, however, the underlying demand is hard to judge since the first quarter is low season and, in addition, the comparative quarter last year was strongly affected by the weather conditions.
In the interim report for the fourth quarter 2010 we indicated that it is unlikely that Lindab's organic growth target of 8 percent will be achieved for the full year 2011. This was based on external market growth forecasts and excludes price effects in 2011 to compensate for rising steel prices. The underlying market conditions have not changed since then and steel linked price movements are difficult to predict, consequently we maintain our outlook for the full year 2011. However, as stated before, we expect to outperform the general construction market.
Why? Because at Lindab we think that less is more. We simplify construction for our customers while we are working to lessen the impact on the environment.
Our steel solutions help our customers to use less effort and less energy. At the same time, they generate less greenhouse gas emissions and lessen the carbon footprint.
Sales revenue for the first quarter amounted to SEK 1,377 m (1,234), an increase of 12 percent compared with the first quarter of 2010. Adjusted for currency effects and structural changes, the increase was 19 percent. Price increases have positively affected sales. Currency effects have negatively affected sales revenue by 8 percent. Structural changes, relating to the acquisition of the Finnish ventilation company IVK-Tuote Oy in the first quarter of 2010, have positively affected sales revenue by 1 percent.
During the quarter, sales in the Nordic region have risen by 13 percent. Adjusted for currency and structure the increase was 17 percent. Overall, the Swedish market is showing continued strong sales growth. Sales in Western Europe increased by 5 percent. Adjusted for currency effects, sales increased by 14 percent. Sales in the CEE/CIS increased by 28 percent. When adjusted for currency the increase was 41 percent. Both the Russian and the Belarusian markets showed strong growth during the quarter.
Operating profit (EBIT) for the first quarter amounted to SEK –7 m (–50), excluding one-off items of SEK –17 m (75).
The operating margin (EBIT) for the first quarter, excluding one-off items, amounted to –0.5 percent (–4.1).
Higher volumes are the main reason for the improved profit. The operating margin has been affected negatively, however, from deliveries to projects with low margins on orders that were taken in the second half of 2010 within Building Systems. A number of marketing activities have also commenced during the quarter, leading to higher costs.
The profit has been affected by one-off costs totalling SEK 17 m. These relate to the change in management for the Ventilation business area and the decision to move Ventilation's production in St. Petersburg to Lindab's existing facility in Tallinn, Estonia.
The pre-tax result for the period amounted to SEK –62 m (–15). The after-tax result amounted to SEK –52 m (–28). The deterioration is explained by negative one-off items this quarter, whereas the one-off items the corresponding period last year were positive. Earnings per share amounted to SEK –0.69 (–0.37). The average share price during the first quarter of 2011 has been lower than the conversion rates in the incentive programmes, therefore no dilutive effects have occurred.
Lindab's operations are affected by seasonal variations in the construction industry, and the greatest proportion of sales is normally seen during the second half of the year. The most substantial seasonal variations are to be found within the Building Components and Building Systems business areas. The Ventilation business area is less dependent on seasons and the weather since the installation of ventilation systems is mainly carried out indoors.
There is normally a deliberate stock build-up of mainly finished goods during the first six months, which gradually becomes a stock reduction during the third and fourth quarters as a result of increased activity within the construction market.
Traditionally, the first quarter is characterised by low activity. Growth was relatively strong in the first quarter of 2011, mainly due to the weather conditions generally in Lindab's markets having been more favourable than for the corresponding period in 2010. The exception to this, however, was in parts of Northern Europe, which again was affected by a harsh winter, particularly in January and February.
CEE/CIS Other markets
Western Europe
The total depreciation/amortisation for the quarter decreased to SEK 39 m (47), of which SEK 0 m (3) related to consolidated amortisation of surplus value on intangible assets. The lower depreciation/amortisation is mainly due to the implemented restructuring measures and the fact that Lindab has had a lower rate of investment in recent years. The sale of the property in Luxembourg has also affected the depreciation costs. For certain surplus value on intangible assets, the amortisation was completed during the third quarter of 2010.
The tax amount for the quarter consisted of an income of SEK 10 m. The tax amount in the previous year consisted of a cost of SEK 13 m. The pre-tax result amounted to SEK –62 m (–15). The actual tax rate for the quarter was 16 percent. The average tax rate was 22 percent.
Cash flow from operating activities amounted to SEK –239 m for the first quarter compared with SEK –172 m for the same period the previous year. Working capital increased by SEK 213 m (82), which negatively affected the cash flow. As for the previous year, capital tied up in stock and receivables increased by SEK 221 m (277). Operating liabilities increased by SEK 8 m (195). The difference versus last year is explained by a timing effect of payments to suppliers.
Cash flow from investing activities is reported under Investments and Company acquisitions.
Investments in fixed assets amounted to SEK 23 m (18) for the quarter, while divestments amounted to SEK 11 m (286). In the previous year, the Building Systems facility in Luxembourg was sold for SEK 285 m. A leaseback agreement was signed with the buyer. The cash flow from investing activities amounted to SEK –12 m (268) net, excluding acquisitions.
No acquisitions or divestments of Group companies have been made during the first quarter of 2011. IVK-Tuote Oy in Finland was acquired during the first quarter of 2010 for SEK 43 m. Because the acquisition was paid for using treasury shares, the cash flow from investing activities was only affected positively by the company's SEK 4 m in cash and cash equivalents.
Net debt decreased to SEK 2,097 m (2,286) at 31 March 2011. Currency fluctuations have had a marginal effect on the net debt since the start of the year. The equity/assets ratio amounted to 40 percent (40) and the net debt-equity ratio was 0.8 (0.8). Net financial income during the quarter was SEK –38 m (–40).
Since December 2007, Lindab has had a binding five-year credit agreement with Nordea and Handelsbanken. The total credit limit is SEK 3.5 bn with a maturity date of 17 December 2012. Unused credit facilities amounted to SEK 1,577 m (1,508).
There have not been any significant changes to pledged assets and contingent liabilities during 2011.
The parent company had no sales during the quarter. The after-tax result for the period amounted to SEK –18 m (–16).
There have been no changes to what was stated by Lindab in its Annual Report for 2010 under Risks and risk management (pages 94–98).
Nils-Johan Andersson, CFO at Lindab since 1999, replaced Anders Thulin as business area manager for Ventilation as from 21 March. Acting CFO is Per Nilsson, Group Controller at Lindab.
The number of employees at the end of the quarter, converted to full-time employment, totalled 4,395 (4,394) which is an increase of 14 people since the start of the year.
The Board at Lindab International AB have de-
quarterApril-June July-Sept Oct-Dec Jan-March rolling *) Adjusted for one-off items.
0
quarter April-June July-Sept Oct-Dec Jan-March rolling
cided to propose at the Annual General Meeting a long-term incentive programme in the form of a performance-based share savings programme. The aim is to ensure long-term commitment among the existing senior executives and key employees in the Group, and also to improve Lindab's possibilities for future recruitment. By using the company's shares as a central instrument in the incentive programme both share ownership and long-term value growth in Lindab are rewarded, which means the creation of common goals for existing shareholders and participants in the programme. Further information can be found under Corporate Governance at www.lindabgroup.com.
The Annual General Meeting for Lindab International AB will be held on 11 May 2011 at 14.00 (CET), at the Lindab Arena, Ängelholm, Sweden. Shareholders who wish to take part in the Annual General Meeting must be registered in the register of shareholders held by Euroclear Sweden AB no later than Thursday 5 May 2011.
Those wishing to participate must give notice no later than 16.00 on Thursday 5 May 2011:
The highest price paid for Lindab shares during the period January–March was SEK 95.80 on 18 January, and the lowest was SEK 72.50 on 23 February. The closing price on 31 March 2011 was SEK 83.15. The average daily trading volume of Lindab shares was 201,738 shares per day (184,326).
Lindab holds 3,375,838 treasury shares (3,375,838), equivalent to 4.3 percent (4.3) of the total number of Lindab shares. The number of outstanding shares totals 75,331,982 (75,331,982), while the total number of shares is 78,707,820.
The biggest shareholders in relation to the number of outstanding shares are Ratos AB with 11.7 percent (23.5), Sjätte AP-fonden with 10.7 percent (10.7), Livförsäkringsaktiebolaget Skandia with 10.1 percent (11.6), Robur/Swedbank with 9.9 percent (7.9) and Lannebo Fonder with 6.8 percent (4.9). The holdings of the ten largest shareholders constitute 63.3 percent of the shares (74.2), excluding Lindab's own holding.
Lindab's Board proposes that the Annual General Meeting on 11 May 2011 resolves to pay a dividend of SEK 1.00 per share, giving a total dividend of SEK 75 m. No dividend was paid in 2010. 16 May 2011 is the proposed dividend record day, with the dividend expected to be paid to shareholders on 19 May 2011.
After the reversal of the write-down in goodwill, which is a one-off item not affecting cash flow, the dividend amounts to 55 percent of the profit. Given that no dividend was paid in 2009, and with regard to the business performance in 2010, it is reasonable to exceed the adopted dividend policy of 40–50 percent.
The acquisition of the Danish distributor of ventilation fans, Juvenco, with an annual turnover of SEK 13 m was announced on 19 April.
See note 1, page 15.
Unless otherwise specified in this Interim Report, all statements refer to the Group. Figures in parentheses indicate the outcome for the corresponding period in the previous year.
A compilation of key figures can be found on page 16.
| Jan-March 2011 | Jan-March 2010 | Jan-Dec 2010 | |
|---|---|---|---|
| Sales revenue, SEK m | 1,377 | 1,234 | 6,527 |
| Change, SEK m | 143 | –537 | –492 |
| Change, % | 12 | –30 | –7 |
| Of which | |||
| Volumes and prices, % | 19 | –25 | –1 |
| Acquisitions/divestments, % | 1 | –1 | 0 |
| Currency effects, % | –8 | –4 | –6 |
| SEK m | Jan-March 2011 | Jan-March 2010 | Jan-Dec 2010 |
|---|---|---|---|
| Nordic region | 635 | 561 | 2,911 |
| Western Europe | 432 | 413 | 1,926 |
| CEE/CIS | 249 | 194 | 1,416 |
| Other markets | 61 | 66 | 274 |
| Total | 1,377 | 1,234 | 6,527 |
| SEK m | Jan-March 2011 | Jan-March 2010 | Jan-Dec 2010 |
|---|---|---|---|
| Ventilation | 846 | 827 | 3,535 |
| Building Components | 354 | 278 | 2,118 |
| Building Systems | 177 | 129 | 874 |
| Other operations | - | - | - |
| Total | 1,377 | 1,234 | 6,527 |
| Gross internal sales all segments | 10 | 5 | 27 |
| SEK m | Jan-March 2011 | Jan-March 2010 | Jan-Dec 2010 |
|---|---|---|---|
| Ventilation | 49 | 28 | 189 |
| Building Components | –17 | –34 | 185 |
| Building Systems | –24 | –34 | 18 |
| Other operations | –15 | –10 | –45 |
| One-off items1) | –17 | 75 | –63 |
| Total (EBIT) | –24 | 25 | 284 |
| Net financial income | –38 | –40 | –172 |
| Result before tax (EBT) | –62 | –15 | 112 |
1) The operating profit (EBIT) per business area for the first quarter of 2011 has been adjusted by SEK –17 m regarding the transfer of Ventilation's production in St. Petersburg, Russia to Tallinn, Estonia and the change of business area manager.
The operating profit (EBIT) for the first quarter of 2010 has been adjusted by SEK 75 m relating to the capital gain on the sale of property in Diekirch, Luxembourg. The full year 2010 includes SEK 110 m relating to the write-down in goodwill for the Ventilation business area's operations in the USA, SEK 7 m relating to the closure of the Ventilation unit in Texas in the USA, and restructuring expenses of SEK 19 m within the Group.
Sales revenue during the first quarter rose by 2 percent compared with the corresponding period the previous year, totalling SEK 846 m (827). Currency effects have reduced sales by 7 percent. The acquisition of IVK-Toute Oy has positively affected sales by 1 percent.
The business area's primary segment is non-residential construction, which saw a slight increase in demand during the quarter, particularly in Sweden. Sales for the business area is showing organic growth compared with the corresponding period the previous year in all of Lindab's regions.
Operating profit (EBIT) for the first quarter, excluding one-off items, amounted to SEK 49 m (28). The operating margin (EBIT) amounted to 5.8 percent (3.4). The improved margin was due to good cost control in combination with volume growth. One-off items amount to SEK –17 m and relate to the decision to transfer Ventilation's production in St. Petersburg, Russia to Tallinn, Estonia, and the change of business area manager.
During the quarter, it was decided that the business area's production in St. Petersburg, which mainly supplies the Finnish market, would move to an existing facility in Tallinn, Estonia. The move will only have a marginal effect on the Russian sales organisation.
Nils-Johan Andersson, formerly CFO at Lindab, replaced Anders Thulin as business area manager during the quarter.
The acquisition of the Danish distributor of ventilation fans, Juvenco, with an annual turnover of SEK 13 m, was announced on 19 April.
| Jan-March 2011 Jan-March 2010 | Jan-Dec 2010 | ||
|---|---|---|---|
| Sales revenue, SEK m | 846 | 827 | 3,535 |
| Operating profit (EBIT), SEK m1) | 49 | 28 | 189 |
| Operating margin (EBIT), %1) | 5.8 | 3.4 | 5.3 |
| No. of employees at close of period | 2,332 | 2,560 | 2,488 |
1) The operating profit (EBIT) for the first quarter of 2011 has been adjusted by SEK –17 m regarding the transfer of Ventilation's production in St. Petersburg, Russia, to Tallinn, Estonia, and the change of business area manager.
Operating profit (EBIT) for the full year 2010 has been adjusted by SEK 110 m relating to the write-down in goodwill for the Ventilation business area's operations in the USA, SEK 7 m relating to the closure of the Ventilation unit in Texas in the USA, and restructuring expenses of SEK 11 m.
Lindab has supplied chilled beams, diffusers, MBB plenum boxes etc. to a new production facility for Skruf Snus in Småland, Sweden.
Ventilation consultant Axro Consult comments: "Getting help regarding product selection and calculations, especially in projects like these with high ceilings, long throws and generally high system complexity, has been extremely valuable."
Sales revenue rose by 27 percent to SEK 354 m (278). Adjusted for currency fluctuations, sales increased by 34 percent during the quarter.
The business area showed strong sales growth during the quarter in all regions. Demand was negatively affected by the winter. In the corresponding period the previous year, the winter was even less favourable in the majority of the business area's markets, particularly in Central and Eastern Europe.
Residential construction continues to show strong growth in the Nordic region, driven mainly by Sweden and Finland. In Western Europe, which accounts for only a small part of the business area's sales, the market for residential construction has now started to recover while the market in Central and Eastern Europe remains weak.
Operating profit (EBIT) for the quarter amounted to SEK –17 m (–34). The operating margin (EBIT) amounted to –4.8 percent (–12.2) for the quarter. Higher volumes are the main reasons for the improved margin. The quarter was affected by a higher cost level, resulting mainly from marketing activities. The gross margin has been temporarily negatively affected by higher steel costs that have not yet been compensated for through increased sales prices.
A decision was taken during the quarter to invest in a new production facility in Moscow to support the growing sales in the Russian market. A decision was also made about the expansion of distribution in Western Europe. This will be realised by utilising Ventilation's existing network of branches in France and Germany.
Passive house construction company ECODO uses Lindab solutions for all its projects.
"With Lindab's lightweight construction technology and the Lindab Safe duct system, we obtain an environmental 'shell' with minimal heat loss and an airtight, efficient ventilation system with heat recovery," explains Magnus Norström project manager at ECODO.
| Jan-March 2011 Jan-March 2010 | Jan-Dec 2010 | ||
|---|---|---|---|
| Sales revenue, SEK m | 354 | 278 | 2,118 |
| Operating profit (EBIT), SEK m | –17 | –34 | 185 |
| Operating margin (EBIT), % | –4,8 | –12,2 | 8,7 |
| No. of employees at close of period | 1,027 | 1,012 | 998 |
Sales revenue rose by 37 percent to SEK 177 m (129) during the first quarter. Currency effects have negatively affected sales by 15 percent during the quarter.
Sales for the business area are indicating good growth in all regions in Europe, particularly pronounced in Russia and Belarus. The comparison is affected by the first quarter the previous year being unusually weak.
The main market, new construction of industrial buildings, remains weak in general. By contrast, individual markets, particularly within Central and Eastern Europe, are showing signs of stabilization or weak growth.
Operating profit (EBIT) for the quarter, excluding one-off items, amounted to SEK –24 m (–34). The operating margin (EBIT) amounted to –13.6 percent (–26.4) for the quarter.
Higher volumes are the main reason for the increased profit. The operating margin has been affected by deliveries to some projects with low margins from orders that were taken during the second half of 2010, due to the prevailing market conditions. The margins for orders taken during the first quarter have improved somewhat.
At the end of the quarter, an order of more than SEK 70 m was received in the Russian market for delivery in the second half of 2011.
During the quarter the business has changed brand and will now operate under the "Lindab Buildings" name instead of "Astron Buildings".
| Jan-March 2011 Jan-March 2010 | Jan-Dec 2010 | ||
|---|---|---|---|
| Sales revenue, SEK m | 177 | 129 | 874 |
| Operating profit (EBIT), SEK m1) | –24 | –34 | 18 |
| Operating margin (EBIT), %1) | –13.6 | –26.4 | 2.1 |
| No. of employees at close of period | 809 | 732 | 788 |
1) The operating profit (EBIT) for the first quarter of 2010 has been adjusted by one-off items of SEK 75 m relating to a capital gain on the sale of property in Diekirch, Luxembourg.
Operating profit (EBIT) for the full year 2010 has been adjusted by SEK 65 m, primarily relating to the capital gain on the sale of property in Luxembourg, and costs for the closure of the Building Systems plant in Hungary.
The new Porsche centre in Kharkov, Ukraine is a fine example of how efficient construction, optimal performance and corporate design can all be combined through the use of Lindab Buildings.
| Amounts in SEK m | Jan-March 2011 |
Jan-March 2010 |
Rolling 12 M April 2010- March 2011 |
Jan-Dec 2010 |
|---|---|---|---|---|
| Sales revenue | 1,377 | 1,234 | 6,670 | 6,527 |
| Cost of goods sold | –1,015 | –913 | –4,792 | –4,690 |
| Gross profit | 362 | 321 | 1,878 | 1,837 |
| Other operating income | 19 | 103 | 89 | 173 |
| Selling expenses | –228 | –234 | –911 | –917 |
| Administrative expenses | –128 | –125 | –522 | –519 |
| R & D costs | –10 | –9 | –37 | –36 |
| Other operating expenses | –39 | –31 | –262 | –254 |
| Total operating expenses | –386 | –296 | –1,643 | –1,553 |
| Operating profit (EBIT)1) | –24 | 25 | 235 | 284 |
| Interest income | 1 | 1 | 9 | 9 |
| Interest expenses | –39 | –42 | –176 | –179 |
| Other financial income and expenses | 0 | 1 | –3 | –2 |
| Net financial income | –38 | –40 | –170 | –172 |
| Result before tax (EBT) | –62 | –15 | 65 | 112 |
| Tax | 10 | –13 | –62 | –85 |
| After tax result | –52 | –28 | 3 | 27 |
| – thereof attributable to parent company | ||||
| shareholders | –52 | –28 | 3 | 27 |
| Other comprehensive income | ||||
| Cash flow hedges | 11 | –11 | 23 | 1 |
| Translation differences, foreign operations | –31 | –121 | –236 | –326 |
| Income tax attributable to cash flow hedges | –3 | 3 | –6 | 0 |
| Other comprehensive income | –23 | –129 | –219 | –325 |
| Total comprehensive income | –75 | –157 | –216 | –298 |
| – thereof attributable to parent company | ||||
| shareholders | –75 | –157 | –216 | –298 |
| Earnings per share, SEK | ||||
| Undiluted | –0.69 | –0.37 | 0.04 | 0.36 |
| Diluted | –0.69 | –0.37 | 0.04 | 0.36 |
| 1) The operating profit (EBIT) has been affected by one-off items recorded as; | ||||
| Other operating income Other operating expenses |
- –17 |
75 - |
–2 –153 |
73 –136 |
The operating profit (EBIT) for the first quarter of 2011 has been adjusted by SEK –17 m regarding the transfer of Ventilation's production in St. Petersburg, Russia, to Tallinn, Estonia, and the change of business area manager.
The operating profit (EBIT) for the first quarter of 2010 has been adjusted by SEK 75 m relating to the capital gain on the sale of property in Diekirch, Luxembourg. The full year 2010 includes SEK 110 m relating to the write-down in goodwill for the Ventilation business area's operations in the USA, SEK 7 m relating to the closure of the Ventilation unit in Texas in the USA, and restructuring expenses of SEK 19 m within the Group.
Operating profit (EBIT) excl. one-off items –7 –50 390 347
(Indirect method)
| Rolling 12 M | ||||
|---|---|---|---|---|
| Jan-March | Jan-March | April 2010- | ||
| Amounts in SEK m | 2011 | 2010 | March 2011 | Jan-Dec 2010 |
| Operating activities | ||||
| Operating profit | –24 | 25 | 235 | 284 |
| Reversal of depreciation/amortisation | 39 | 47 | 272 | 280 |
| Reversal of capital gains (–) / losses (+) reported in operating profit | 0 | –97 | 31 | –66 |
| Provisions, not affecting cash flow | 11 | –18 | –5 | –34 |
| Adjustment for other items not affecting cash flow | 6 | 40 | 75 | 109 |
| Total | 32 | –3 | 608 | 573 |
| Interest received | 0 | 0 | 16 | 16 |
| Interest paid | –46 | –44 | –174 | –172 |
| Tax paid | –12 | –43 | 6 | –25 |
| Cash flow from operating activities before change in working capital | –26 | –90 | 456 | 392 |
| Change in working capital | ||||
| Stock (increase – /decrease +) | –108 | –141 | –166 | –199 |
| Operating receivables (increase – /decrease +) | –113 | –136 | 70 | 47 |
| Operating liabilities (increase + /decrease –) | 8 | 195 | –36 | 151 |
| Total change in working capital | –213 | –82 | –132 | –1 |
| Cash flow from operating activities | –239 | –172 | 324 | 391 |
| Investing activities | ||||
| Acquisition of Group companies | - | 4 | - | 4 |
| Investments in intangible fixed assets | –3 | –2 | –26 | –25 |
| Investments in tangible fixed assets | –20 | –16 | –107 | –103 |
| Change in financial fixed assets | 0 | 0 | 0 | 0 |
| Sale/disposal of intangible fixed assets | 0 | 0 | 0 | 0 |
| Sale/disposal of tangible fixed assets | 11 | 286 | 90 | 365 |
| Cash flow from investing activities | –12 | 272 | –43 | 241 |
| Financing activities | ||||
| Increase +/decrease – in borrowing | 182 | –148 | –293 | –623 |
| Warrant premium payments | - | - | 7 | 7 |
| Dividend to shareholders | - | - | - | - |
| Cash flow from financing activities | 182 | –148 | –286 | –616 |
| Cash flow for the period | –69 | –48 | –5 | 16 |
| Cash and cash equivalents at start of the period | 239 | 248 | 193 | 248 |
| Effect of exchange rate changes on cash and cash equivalents | –1 | –7 | –19 | –25 |
| Cash and cash equivalents at end of the period | 169 | 193 | 169 | 239 |
| Amounts in SEK m | 31 March 2011 31 March 2010 | 31 Dec 2010 | |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Goodwill | 2,576 | 2,839 | 2,591 |
| Other intangible fixed assets | 60 | 57 | 61 |
| Tangible fixed assets1) | 1,128 | 1,272 | 1,161 |
| Financial fixed assets, interest bearing | 26 | 25 | 26 |
| Other financial fixed assets | 383 | 386 | 370 |
| Total fixed assets | 4,173 | 4,579 | 4,209 |
| Current assets | |||
| Stock | 1,144 | 1,016 | 1,040 |
| Accounts receivable | 984 | 974 | 897 |
| Other current assets | 183 | 426 | 164 |
| Other receivables, interest bearing | 21 | 0 | 21 |
| Non-current assets held for sale1) | - | 18 | - |
| Cash and bank | 169 | 193 | 239 |
| Total current assets | 2,501 | 2,627 | 2,361 |
| TOTAL ASSETS | 6,674 | 7,206 | 6,570 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,680 | 2,889 | 2,755 |
| Long-term liabilities | |||
| Interest-bearing provisions | 128 | 127 | 130 |
| Interest-bearing liabilities | 1,977 | 2,191 | 1,926 |
| Provisions | 349 | 377 | 352 |
| Other long-term liabilities | 13 | 14 | 12 |
| Total long-term liabilities | 2,467 | 2,709 | 2,420 |
| Current liabilities | |||
| Interest-bearing liabilities | 209 | 186 | 86 |
| Provisions | 53 | 59 | 43 |
| Accounts payable | 649 | 678 | 622 |
| Other short-term liabilities | 616 | 685 | 644 |
| Total current liabilities | 1,527 | 1,608 | 1,395 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 6,674 | 7,206 | 6,570 |
1) Non-current assets held for sale at 31-03-2010 refer to the production facility in Nyiregyháza, Hungary.
| Equity relating to the parent company's shareholders | ||||||
|---|---|---|---|---|---|---|
| Amounts in SEK m | Share capital |
Other contributed capital |
Hedging reserve |
Foreign currency transl. adj. |
Profit brought forward |
Total equity |
| Opening balance, 1 January 2010 | 79 | 2,244 | –8 | 372 | 316 | 3,003 |
| Total comprehensive income | 1 | –326 | 27 | –298 | ||
| Premiums for warrants1) | 7 | 7 | ||||
| Transfer of treasury shares in company acquisition | 43 | 43 | ||||
| Closing balance, 31 December 2010 | 79 | 2,251 | –7 | 46 | 386 | 2,755 |
| Opening balance, 1 January 2011 | 79 | 2,251 | –7 | 46 | 386 | 2,755 |
| Total comprehensive income | 8 | –31 | –52 | –75 | ||
| Closing balance, 31 March 2011 | 79 | 2,251 | 1 | 15 | 334 | 2,680 |
1) The Annual General Meeting in 2010 resolved to issue 784,000 warrant options to senior executives. 771,000 were subscribed to and SEK 7 m has been received as payment regarding these.
The share capital of SEK 78,707,820 is divided among 78,707,820 shares with a face value of SEK 1.00. Lindab International holds 3,375,838 (3,375,838) treasury shares, corresponding to 4.3 percent (4.3) of the total number of Lindab shares, following the buy-back in 2008. In the first quarter of 2010, the purchase price of EUR 4.4 m or SEK 43 m was paid for IVK-Tuote Oy through the transfer of 559,553 treasury shares.
The Annual Report for 2010 will be presented at the Annual General Meeting on 11 May 2011. Lindab's Board of Directors proposes a dividend of SEK 1.00 per share for 2010, giving a total dividend of SEK 75 m. No dividend was paid in the previous year.
| Amounts in SEK m | Jan-March 2011 |
Jan-March 2010 |
Jan-Dec 2010 |
|---|---|---|---|
| Other operating income | - | –1 | 2 |
| Administrative expenses | –1 | - | –11 |
| Operating profit | –1 | –1 | –9 |
| Profit from subsidiaries | - | - | 111 |
| Interest expenses, internal | –23 | –20 | –88 |
| Result before tax | –24 | –21 | 14 |
| Tax on profit for the period | 6 | 5 | –5 |
| After tax result | –18 | –16 | 9 |
| Amounts in SEK m | 31 March 2011 31 March 2010 | 31 Dec 2010 | |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Shares in Group companies | 3,467 | 3,467 | 3,467 |
| Financial fixed assets, interest bearing | 7 | 11 | 7 |
| Other long-term receivables | 10 | 8 | 4 |
| Total fixed assets | 3,484 | 3,486 | 3,478 |
| Current assets | |||
| Other receivables | 8 | 7 | 6 |
| Cash and bank | 0 | 0 | 1 |
| Total current assets | 8 | 7 | 7 |
| TOTAL ASSETS | 3,492 | 3,493 | 3,485 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 1,464 | 1,457 | 1,482 |
| Long-term liabilities | |||
| Interest-bearing provisions | 8 | 11 | 8 |
| Liabilities to Group companies | 2,016 | 2,022 | 1,991 |
| Total long-term liabilities | 2,024 | 2,033 | 1,999 |
| Current liabilities | |||
| Non-interest-bearing liabilities | 4 | 3 | 4 |
| Total current liabilities | 4 | 3 | 4 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,492 | 3,493 | 3,485 |
The consolidated accounts for the first quarter of 2011, as for the annual accounts for 2010, have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU, the Annual Accounts Act and the RFR 1, Supplementary Accounting Rules for Groups, by the Swedish Financial Reporting Board.
This quarterly report has been prepared in accordance with IAS 34.
The Group uses the same accounting policies as described in the Annual Report for 2010. None of the new or revised standards, interpretations and improvements that have been adopted by the EU and that must be applied from 1 January 2011 have had an effect on the Group.
The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act (ÅRL) and RFR 2, Accounting for legal entities, and according to the same principles that were applied to the Annual Report for 2010.
Significant estimates and assumptions are described in Note 4 in the Annual Report for 2010.
There have not been any changes made to anything that could have a material impact on the interim report.
Operating segments are reported in accordance with IFRS 8 and IAS 34.
Lindab's operations are managed and reported by business area, which is consistent with the segmentation.
The Ventilation business area offers duct systems and accessories, as well as indoor climate solutions for ventilation, cooling and heating. The Building Components business area offers steel products and systems for roof drainage, roof and wall cladding, as well as steel profiles for wall, roof and beam constructions. The Building Systems business area offers complete pre-engineered steel building systems. Solutions comprise the entire outer shell with frames, walls, roofs and accessories. Other comprises parent company functions including Group Treasury.
Information about revenues from external customers, operating profit and the pre-tax result by operating segment is shown in the tables on page 6.
Revenues from other segments total small amounts and a breakdown of this sum by segment therefore does not offer any additional value.
Inter-segment transfer pricing is determined on an arms-length basis i.e. between parties that are independent of one another, are well informed and have an interest in the implementation of the transaction. Assets and investments are reported wherever the asset is located.
No changes have occurred in the fundamentals for segmentation or in the calculation of the segment's profit since the last Annual Report was issued.
Assets per segment that have changed by more than ten percent compared with the end of 2010 are shown below:
No major changes.
Stock has increased by 28 percent. Other assets has increased by 33 percent since the start of the year.
No major changes.
Lindab's related parties and the extent of transactions with related parties are described in note 30 of the 2010 Annual Report. IAS 24, Related party disclosures, has been amended and are effective for financial years beginning from and including January 2011. The changes have no impact on the Group however.
During the year, no transactions have taken place between Lindab and related parties that have had a significant impact on the company's position and results.
| Quarterly Periods | ||||||
|---|---|---|---|---|---|---|
| 2011 | 2010 | 2009 | ||||
| Jan | Oct July April |
Jan | Oct July |
April | Jan | |
| SEK m unless otherwise specified | March | Dec Sept June |
March | Dec Sept |
June | March |
| Sales revenue | 1,377 | 1,697 1,881 1,715 |
1,234 | 1,602 1,825 |
1,821 | 1,771 |
| Operating profit, (EBITDA)1) | 15 | 112 247 134 |
72 | 92 165 |
142 | 80 |
| Operating profit, (EBITA)2) | –24 | 76 206 92 |
27 | 37 113 |
88 | 27 |
| Depreciation/amortisation | 39 | 146 42 45 |
47 | 57 56 |
56 | 56 |
| Operating profit, (EBIT)3) | –24 | –35 205 89 |
25 | 34 110 |
85 | 25 |
| Operating profit, (EBIT), excluding one-off items | –7 | 75 212 110 |
–50 | 34 145 |
97 | 25 |
| After tax result | –52 | –86 114 27 |
–28 | 5 37 |
13 | –21 |
| Total comprehensive income | –75 | –128 13 –26 |
–157 | 29 –150 |
53 | –74 |
| Operating margin (EBITA), %4) | –1.7 | 4.5 11.0 5.4 |
2.2 | 2.3 6.2 |
4.8 | 1.5 |
| Operating margin (EBIT), %5) | –1.7 | –2.1 10.9 5.2 |
2.0 | 2.1 6.0 |
4.7 | 1.4 |
| Operating margin (EBIT), excluding one-off items, % | –0.5 | 4.4 11.3 6.4 |
–4.1 | 2.1 7.9 |
5.3 | 1.4 |
| Undiluted average number of shares, (000's) | 75,332 | 75,332 75,332 75,332 | 74,810 | 74,772 74,772 74,772 | 74,772 | |
| Diluted average number of shares, (000's)6) | 75,332 | 75,398 75,332 75,332 | 74,810 | 74,772 74,772 74,772 | 74,772 | |
| Undiluted number of shares, (000's) | 75,332 | 75,332 | 74,772 | |||
| 75,332 75,332 75,332 | 74,772 74,772 74,772 | |||||
| Diluted number of shares, (000's)6) | 75,332 | 75,398 75,332 75,332 | 75,332 | 74,772 74,772 74,772 | 74,772 | |
| Undiluted earnings per share, SEK7) | –0.69 | –1.14 1.51 0.36 |
–0.37 | 0.07 0.49 |
0.17 | –0.28 |
| Diluted earnings per share, SEK8) | –0.69 | –1.14 1.51 0.36 |
–0.37 | 0.07 0.49 |
0.17 | –0.28 |
| Cash flow from operating activities | –239 | 324 172 67 |
–172 | 245 329 |
332 | –187 |
| Cash flow from operating activities per share, SEK9) | –3.17 | 4.30 2.28 0.89 |
–2.30 | 3.28 4.40 |
4.44 | –2.50 |
| Total assets | 6,674 | 6,570 7,275 7,482 |
7,206 | 7,442 7,781 |
8,226 | 8,492 |
| Net debt10) | 2,097 | 1,856 2,104 2,243 |
2,286 | 2,422 2,600 |
2,906 | 3,004 |
| Net debt/equity ratio, times11) | 0.8 | 0.7 0.7 0.8 |
0.8 | 0.8 0.9 |
0.9 | 0.9 |
| Equity | 2,680 | 2,755 2,882 2,869 |
2,889 | 3,003 2,969 |
3,119 | 3,272 |
| Undiluted equity per share, SEK12) | 35.58 | 36.57 38.26 38.08 |
38.35 | 40.16 39.71 |
41.71 | 43.76 |
| Diluted equity per share, SEK13) | 35.58 | 36.54 38.26 38.08 |
38.35 | 40.16 39.71 |
41.71 | 43.76 |
| Equity/asset ratio, %14) | 40.2 | 41.9 39.6 38.3 |
40.1 | 40.4 38.2 |
37.9 | 38.5 |
| Return on equity, %15) | 0.1 | 0.9 4.0 1.4 |
0.9 | 1.1 2.4 |
10.5 | 18.6 |
| Return on capital employed, %16) | 4.7 | 5.5 6.6 4.7 |
4.5 | 4.3 5.4 |
10.9 | 16.0 |
| Return on operating capital, %17) | 4.8 | 4.5 | 16.9 | |||
| 5.6 6.7 4.7 |
4.3 5.6 |
11.2 | ||||
| Return on operating capital, excluding one-off items, % | 7.9 | 6.9 5.8 4.4 |
4.0 | 5.1 8.1 |
13.4 | 18.8 |
| Return on (total) assets, %18) | 3.5 | 4.1 4.9 3.5 |
3.4 | 3.3 4.0 |
8.0 | 11.6 |
| Interest coverage ratio, times19) | –0.6 | –0.7 4.4 2.0 |
0.6 | 1.0 3.1 |
2.5 | 0.1 |
| No. of employees at close of period20) | 4,395 | 4,381 4,485 4,444 |
4,394 | 4,435 4,714 |
4,898 | 4,981 |
*) Operating profit (EBITA) reported excluding one-off items, as reported originally.
16 the period.
5) The operating margin (EBIT) has been calculated as operating profit (EBIT) expressed as a percentage of sales revenue during the period.
7) After tax result in relation to the undiluted average number of outstanding shares.
8) After tax result in relation to the diluted average number of outstanding shares.
| Full-year Periods | |||||||
|---|---|---|---|---|---|---|---|
| 2008 | 2007 | 2006 2010 |
2009 | 2008 | 2007 | 2006 | |
| Jan Oct July April |
Jan | Jan | |||||
| March Dec Sept June |
March | March | |||||
| 2,129 2,427 2,717 2,567 |
1,972 | 1,494 6,527 |
7,019 | 9,840 | 9,280 | 7,609 | |
| 262 182 496 448 |
237 | 135 565 |
479 | 1,388 | 1,512 | 1,103 | |
| 209 117 447 399 |
188 | 85* 401 |
265 | 1,172 | 1,318 | 942* | |
| 55 66 52 52 |
52 | 52 280 |
225 | 225 | 203 | 209 | |
| 207 115 445 396 |
185 | 82 284 |
254 | 1,163 | 1,309 | 894 | |
| 207 218 458 396 |
185 | 82 347 |
301 | 1,279 | 1,309 | 933 | |
| 117 46 294 266 |
112 | 51 | 27 34 |
723 | 901 | 585 | |
| 80 295 404 345 |
208 | 13 –298 |
–142 | 1,124 | 1,035 | 439 | |
| 9.8 4.8 16.5 15.5 |
9.5 | 5.7* | 6.1 3.8 |
11.9 | 14.2 | 12.4* | |
| 9.7 4.7 16.4 15.4 |
9.4 | 5.5 | 4.4 3.6 |
11.8 | 14.1 | 11.7 | |
| 9.7 9.0 16.9 15.4 |
9.4 | 5.5 | 5.3 4.3 |
13.0 | 14.1 | 12.3 | |
| 78,708 75,299 77,502 78,708 |
78,708 120,000 | 75,203 | 74,772 | 77,548 | 78,708 | 90,702 120,000 | |
| 78,708 75,299 77,502 78,708 |
78,708 122,940 | 75,203 | 74,772 | 77,548 | 78,708 | 93,062 122,940 | |
| 78,708 74,772 75,770 78,708 |
78,708 120,000 | 75,332 | 74,772 | 74,772, | 78,708 | 78,708 120,000 | |
| 78,708 74,772 75,770 78,708 |
78,708 122,940 | 75,332 | 74,772 | 74,772 | 78,708 | 78,708 122,940 | |
| 1.49 0.61 3.79 3.38 |
1.42 | 0.43 0.36 |
0.45 | 9.32 | 11.45 | 6.45 | |
| 1.49 0.61 3.79 3.38 |
1.42 | 0.41 0.36 |
0.45 | 9.32 | 11.45 | 6.29 | |
| 17 220 127 317 |
–157 | –42 391 |
719 | 673 | 875 | 778 | |
| 0.22 2.92 1.64 4.03 |
–1.99 | –0.35 5.20 |
9.62 | 8.68 | 11.12 | 8.58 | |
| 7,652 8,625 9,059 8,320 |
7,490 | 6,689 6,570 |
7,442 | 8,625 | 7,700 | 7,082 | |
| 2,270 2,774 2,863 2,430 |
2,812 | 1,894 1,856 |
2,422 | 2,774 | 2,238 | 2,602 | |
| 0.7 0.8 0.9 0.8 |
1.2 | 0.7 | 0.7 0.8 |
0.8 | 0.8 | 1.2 | |
| 3,049 3,346 3,102 2,995 |
2,398 | 2,866 2,755 |
3,003 | 3,346 | 2,969 | 2,190 | |
| 38.74 44.75 40.94 38.05 |
30.47 | 23.89 36.57 |
40.16 | 44.75 | 37.72 | 27.82 | |
| 38.74 44.75 40.94 38.05 |
30.47 | 23.31 36.57 |
40.16 | 44.75 | 37.72 | 27.82 | |
| 39.8 38.8 34.2 36.0 |
32.0 | 43.1 41.9 |
40.4 | 38.8 | 38.6 | 30.9 | |
| 33.8 23.4 31.3 33.9 |
28.9 | 14.9 | 0.9 1.1 |
23.4 | 35.9 | 25.1 | |
| 24.4 20.0 25.0 25.3 |
20.0 | 12.9 | 5.5 4.3 |
20.0 | 24.5 | 18.2 | |
| 25.3 20.7 26.0 26.3 |
20.8 | 13.2 | 5.6 4.3 |
20.7 | 25.4 | 19.1 | |
| 25.3 22.8 26.3 26.3 |
21.7 | 12.9 | 6.9 5.1 |
22.8 | 25.4 | 19.9 | |
| 17.5 14.3 17.7 18.0 |
14.4 | 10.0 | 4.1 3.3 |
14.3 | 17.4 | 13.3 | |
| 5.0 2.0 9.2 9.6 |
5.3 | 4.5 | 1.6 1.8 |
6.1 | 8.6 | 8.4 | |
| 5,206 5,291 5,576 5,366 |
4,930 | 4,527 4,381 |
4,435 | 5,291 | 5,256 | 4,942 |
The interim report has been submitted following approval by the Board of Directors.
Båstad 28 April 2011
David Brodetsky President and CEO
The report has not been subjected to an audit by Lindab's auditors.
Lindab develops, manufactures, markets and distributes products and system solutions primarily in steel for simplified construction and improved indoor climate.
The business is carried out within three business areas, Ventilation, Building Components and Building Systems. The products are characterised by their high quality, ease of assembly, energy efficiency, consideration towards the environment, and are delivered with high levels of service. Altogether, this increases customer value.
The Group had net sales of SEK 6,527 m in 2010, was established in 31 countries and had approximately 4,400 employees.
The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2010, the Nordic market accounted for 45 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 22 percent, Western Europe for 29 percent and other markets for 4 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Mid Cap, under the ticker symbol LIAB. The principal shareholders are Ratos, Sjätte AP-fonden and Skandia Liv.
Duct systems with accessories, as well as solutions for ventilation, heating and cooling for a controlled indoor climate.
Products and systems in sheet steel for roof drainage, roof and wall cladding, as well as steel profiles for walls, roof and beam constructions.
Pre-engineered steel building systems. A complete building solution comprising the outer shell with the main structure, wall, roof and accessories.
Annual General Meeting 11 May Interim Report January–July, Q2 18 July Interim Report January–September, Q3 25 October Fourth quarter and Year End Report 2011 February 2012 Annual Report 2011 March/April 2012
David Brodetsky, CEO Phone +46 (0) 431 850 00 E-mail [email protected]
For more information please visit www.lindabgroup.com Subscribe to our customer magazine (Lindab Direct), press releases, Annual Reports and Interim Reports.
The information here is that which Lindab International AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was made public on 29 April 2011 at 07.40.
SE-269 82 Båstad Visiting address: Järnvägsgatan 41, Grevie Corporate identity number 556606-5446 Phone +46 ( 0 ) 431 850 00 Fax +46 ( 0 ) 431 850 10 E-mail [email protected] www.lindabgroup.com
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