Quarterly Report • Jul 16, 2010
Quarterly Report
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" After a hard winter, the downward sales trend has been broken in the 2nd quarter. However, it is still too early to determine to what extent this reflects business that was deferred due to the winter and how much is due to a recovery in the underlying demand. The positive signals seen in the second quarter are primarily improved demand in residential construction, which has a favourable impact on the Building Components business area in particular. Demand in the Ventilation business area indicates a stabilisation, but the recovery has not yet got under way. Building Systems has had a weak quarter, but the order intake is now increasing. From a geographic perspective, the Nordic region stands out positively. The underlying demand in both Western Europe and CEE/CIS has recovered to pre-winter levels.
Purchase prices for steel will be rising sharply in the third quarter. We will compensate for this with increased prices, which have already been announced to our customers.
The market outlook is largely unchanged. According to macroeconomic indicators, the demand in Lindab's largest market segment, non-residential construction, is predicted to remain weak in the coming year. For the residential segment, the recovery has begun and is expected to continue in the second half of the year.
Lindab's updated strategy takes into account new market conditions, including greater demand for environmentally friendly and energy efficient solutions, high growth potential in Eastern Europe and Russia/CIS and other trends. Focus and resources will be concentrated primarily on the most profitable product and market segments where Lindab's scale, strength and position suggest the strongest growth potential. Lindab's new vision emphasises the importance of relations with our European customer base – To be the preferred partner for building professionals in our core products Europewide. The new vision and the updated strategy entail a stronger focus which will support our revised financial targets.
Sales revenue during the second quarter amounted to SEK 1,715 m (1,821), which is a decrease of 6 percent compared with the second quarter of 2009. Adjusted for currency effects and structural changes, the sales figure was unchanged compared with the same period the previous year. Currency effects have negatively affected sales revenue by 6 percent during the period. Structural changes, relating to the sale of Folke Perforering in the third quarter of 2009 and the acquisition of the Finnish ventilation company IVK-Tuote Oy in the first half of 2010, have altogether had a marginal impact on sales.
During the quarter, sales in the Nordic region have risen by 3 percent. Adjusted for currency and structure the increase was 6 percent. Sales in Western Europe decreased by 8 percent, when adjusted for currency effects, sales increased during the quarter by 1 percent. Sales in the CEE/ CIS decreased by 14 percent, after adjustment for currency the decrease was 9 percent.
The winter of 2009/2010 was unusually harsh, with extreme cold and snow in most of Lindab's markets, which meant that a proportion of sales have shifted from the first to the second quarter.
The demand situation differs between the various market segments. The residential market shows the clearest improvement in demand, which has a positive impact on sales within Building Com-
ponents. Non-residential construction, which is the main market for Building Systems and Ventilation, is showing continued weak demand in general with a few exceptions. The Russian market is recovering more quickly, which is having a positive impact on the order intake for Building Systems. Overall, the Swedish market is also showing greater strength.
Net sales for the period January–June amounted to SEK 2,949 m (3,592), which is a decrease of 18 percent compared with the corresponding period the previous year. Adjusted for currency and structure the decrease amounted to 13 percent. Currency effects have decreased sales by 5 percent during the first six months.
Operating profit (EBIT) for the second quarter increased by 13 percent to SEK 110 m (97), excluding one-off items of SEK -21 m (-12). Oneoff items comprise costs primarily relating to the closure of the Building Systems plant in Hungary and restructuring work within the Ventilation business area.
Reduced costs are the main reason for the increased profit. The previously announced costreduction programmes lowered fixed costs by a further SEK 20 m during the quarter, meaning that the total cumulative effect of the cost-reduction programmes amounts to SEK 560 per annum compared with the situation in 2008.
Sept Dec March June
0 500 1,000 1,500 The SEK 40 m cost-reduction programme for Building Systems announced in the first quarter will not be fully implemented since the improved order intake requires resources for future volume growth.
The price of steel, which is Lindab's main raw material, has in principle remained unchanged during the quarter. Lindab has entered into agreements with steel suppliers that imply substantial price increases from the start of the third quarter. Lindab has announced price increases to compensate for this cost increase.
The operating margin (EBIT) for the period April– June, excluding one-off items, amounted to 6.4 percent (5.3).
The pre-tax result for the period amounted to SEK 47 m (51). The after-tax result increased to SEK 27 m (13). Earnings per share amounted to SEK 0.36 (0.17). Dilutive effects have not been taken into account for the share warrants in the incentive programmes since the current share price is lower than the conversion rates in each of the programmes.
The operating profit (EBIT) for the period January– June, excluding one-off items, amounted to SEK 60 m, compared with the previous year's profit of SEK 122 m. The profit including one-off items amounted to SEK 114 m (110). One-off items for the year total SEK 54 m, with SEK 19 m comprising costs for restructuring measures and an overall capital gain of SEK 73 m from the property transaction completed in the first quarter in Luxembourg. The gain was preliminarily estimated at SEK 75 m. In 2009, the profit was affected by SEK 12 m for the closure of the Building Components production unit in Edsvära, Sweden.
The operating margin (EBIT) for the same period, excluding one-off items, amounted to 2.0 percent (3.4).
The pre-tax result for the period amounted to SEK 32 m (45). The after-tax result amounted to SEK –1 m (–8).
Earnings per share amounted to SEK –0.01 (–0.11).
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 quarter, which gradually becomes a stock reduction during the second and third quarters as a result of increased activity within the construction market.
Net investments for the quarter including acquisitions and divestments amounted to SEK 3 m (44). Investments excluding acquisitions and divestments amounted to SEK 27 m (38). Divestments amounted to SEK 24 m (6), consisting primarily of the sale of the Building Systems production facility in Hungary. The sale price of the plant, including some equipment amounted to HUF 335 m, equivalent to SEK 12 m. The capital loss was SEK 5 m.
Investments for the first six months excluding acquisitions and divestments amounted to SEK 45 m (107). Shares in IVK-Tuote Oy, Finland, were acquired for SEK 43 m. Because the acquisition was paid for using treasury shares, the cash flow from investing activities has only been affected by the company's SEK 4 m in cash and cash equivalents. Sales of fixed assets amounted to SEK 310 m (12), of which the announced
Operating profit (EBIT), SEK m*)
quarter July-Sept Oct-Dec Jan-March April-June rolling *) Adjusted for one-off items.
sale and leaseback transaction for the Building Systems plant in Luxembourg accounted for SEK 285 m.
Cash flow from operating activities amounted to SEK 67 m for the second quarter compared with SEK 332 m for the same period the previous year. The difference consists primarily of the change in working capital between the years. Normally, more working capital is tied up in the first six months due to seasonal variations, but in the previous year working capital decreased by SEK 259 m net, as a result of reduced activity in the market. Cash flow was then affected positively by the SEK 313 m decrease in stock.
During the year, the working capital has reverted to a more normal seasonal trend but at a lower level. The increase for the quarter amounted to SEK 34 m, which negatively affected the cash flow from operating activities.
The cash flow from investing activities amounted to SEK –3 m (–44). Adjusted for acquisitions and divestments this was SEK –3 m (–32). Gross assets were acquired for SEK 27 m (38) and divested for SEK 24 m (6), of which the sale of the Building Systems production facility in Hungary comprised SEK 12 m.
For the first six months, cash flow from operating activities amounted to SEK –105 m (145). Working capital increased by SEK 116 m (–181), due to higher capital tied up in stock and operating receivables, partially offset by increased accounts receivable. In the previous year the stock was reduced substantially, positively affecting the cash flow.
The cash flow from investing activities amounted to SEK 269 m (–108). When adjusted for acquisitions and divestments this was SEK 265 m (–95). In the first six months, shares in IVK-Tuote Oy, Finland, were acquired for SEK 43 m. Because the acquisition was paid for using treasury shares, the cash flow from investing activities has only been affected by the company's SEK 4 m in cash and cash equivalents. Furthermore, the property transaction in Luxembourg was completed. The sale price was SEK 285 m.
Financing activities for the half year resulted in a net cash flow of SEK –114 m (12) consisting of changes in borrowing of SEK –120 m (218) and the payment of SEK 6 m (-) in premiums for warrants in the third incentive programme.
The net debt was SEK 2,243 m (2,906) at 30 June 2010. The equity/assets ratio amounted to 38 percent (38) and the net debt-equity ratio was 0.8 (0.9).
Net financial income during the quarter was SEK –42 m (–34). For the six-month period, the net financial income amounted to SEK –82 m (–65). The deterioration is due to increased interest expenses resulting from raised interest rates.
Unused credit facilities amounted to SEK 1,566 m (2,028).
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.
quarter July-Sept Oct-Dec Jan-March April-June rolling
The Finnish company IVK-Tuote Oy was acquired at the end of March. The company produces and sells ventilation products for indoor climate. In 2009, the company had sales of EUR 6 m and an operating profit of EUR 0.7 m. It has 57 employees. The purchase price amounted to EUR 4.4 m which was paid through the transfer of 559,553 Lindab treasury shares. The acquisition means that the net debt increased by SEK 10 m and consolidated goodwill increased by SEK 9 m.
The total depreciation/amortisation for the quarter was SEK 45 m (56), of which SEK 2 m (2) related to consolidated amortisation of surplus value on intangible assets. The total depreciation/amortisation for the half-year was SEK 92 m (112), of which SEK 5 m (5) related to consolidated amortisation of surplus value on intangible assets.
The lower depreciation is due mainly to restructuring measures and suspended expansion investments. The sale of the property in Luxembourg has also affected the depreciation costs.
Tax expenses for the quarter amounted to SEK 20 m (38). The pre-tax result amounted to SEK 47 m (51).
Tax expenses for the half-year were SEK 33 m (53). The pre-tax result amounted to SEK 32 m (45).
The high tax expenses relative to the negative result is partly caused by the tax rate in Luxembourg being higher than the average rate in the Group, and the deferred tax on the capital gain from the sale of property thereby contributing to higher tax expenses. Moreover, fiscal adjustments (e.g. for non-deductible expenses) to the reported profit have a greater impact on the tax rate for low profits than when profit levels are more normal. Furthermore, the deferred tax has not been activated on certain deficits.
The capital gain on the sale of property in Luxembourg has been charged with deferred tax in accordance with IFRS. Under local rules in Luxembourg however, the tax payment can be avoided if the capital gain is reinvested. The capital gain has been reinvested in the subsidiary LA Services S.àr.l in Luxembourg, and the payment of taxes can thereby be deferred as long as the holding remains.
During the first quarter, Lindab submitted floating
charges equivalent to SEK 313 m as security for its credit agreement. Otherwise, there have not been any significant changes to pledged assets and contingent liabilities.
The parent company had no sales during the quarter. The after-tax result for the period amounted to SEK –17 m (–12). For the period January–June, the corresponding figure was SEK –33 m (–23).
There have been no other changes to what was stated by Lindab in its Annual Report for 2009 regarding Noteworthy risks and uncertainties (pages 93–97).
Lindab International AB's Annual General Meeting on 11 May 2010 decided on the following:
Lindab hosted an Investor Day in Stockholm on 14 June at which the company's new vision, updated strategy and financial targets were presented.
The vision is: "to be the preferred partner for building professionals in Lindab's core products Europewide"
The updated strategy focuses on profitable growth with clearer and more detailed action plans for the future direction of the three business areas. The strategies for the business areas can be summarised as follows:
The same occasion was used to communicate the revised financial targets. The growth target regarding annual organic sales has been raised from 6 percent to 8 percent, in light of the updated strategy and the assumptions for market growth. The operating margin remains at 14 percent and this is judged to be realistic in good economic conditions. The target for the net debtequity ratio has been lowered from an interval of 1.0–1.4 times to 0.8–1.2 times, which is in line with historical levels.
The 2010 Annual General Meeting decided to continue the three-year Incentive Programme introduced in 2008, with stage three implemented in May. Of the programme's 784,000 warrants, 52,000 have been reserved for incoming executives in 2010. The remaining 732,000 warrants have been fully subscribed to by participants in the programme. Newly recruited executives will be invited to subscribe later in the year, but with conditions applicable at this later date based on the Black-Scholes option pricing model.
The price per warrant was established at SEK 8.40, entitling the holder to one share in Lindab International for SEK 93.00 between 1 June 2012 and 31 May 2013. The warrants have been valued according to the Black-Scholes option pricing model.
The Incentive Programme has the same structure as the programmes that were subscribed to in 2008 and 2009. The programme also entitles the holder to reimbursements, which means everyone who remains employed and continues to own the warrants will receive 50 percent of the purchase price after tax, divided among three occasions during the term. The annual cost for Lindab is estimated to total approximately SEK 3 m. The dilutive effect may be approximately 1 percent of the share capital per incentive programme. Dilutive effects have not been taken into account since the current share price is lower than the conversion rates in each of the programmes. Upon redemption, Lindab has the opportunity to transfer parts of its treasury shares that were repurchased in 2008.
The number of employees at the end of the quarter, converted to full-time employment, totalled 4,444 (4,898) which is an increase of 9 people since the start of the year. Adjusted for the acquisition of IVK-Tuote Oy, the number of employees decreased by 48.
The highest price paid for Lindab shares during the period January–June was SEK 89.50 on 21 April, and the lowest was SEK 61.25 on 26 February. The share price on 30 June 2010 was SEK 82.25. The average daily trading volume of Lindab shares was 163,596 shares per day (127,527).
Lindab holds 3,375,838 treasury shares (3,935,391), equivalent to 4.3 percent (5.0) of the total number of Lindab shares. The share buy-back was completed in 2008. The decrease is due to the acquisition of IVK-Tuote Oy through Lindab treasury shares, in which 559,553 shares were transferred to the seller of the company. The number of outstanding shares has therefore increased to 75,331,982 (74,772,429).
The largest shareholders in relation to the number of outstanding shares are Ratos AB with 23.5 percent (23.7), Livförsäkringsaktiebolaget Skandia with 11.6 percent (12.6), Sjätte AP-fonden with 10.7 percent (11.8), Robur/Swedbank with 8.4 percent (7.9) and Lannebo Fonder with 4.5 percent (4.2). The holdings of the ten largest shareholders constitute 74.4 percent of the shares (74.2), excluding Lindab's own holding.
From 1 January 2010, Lindab reports in three segments: the business areas of Ventilation, Building Components and Building Systems (the latter two were formerly included in the Profile business area). Historical financial information for the new segment breakdown is available on the Group's website, www.lindabgroup.com, under Investor Relations, Financial information.
See note 1, page 18.
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.
| April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 1,715 | 1,821 | 2,949 | 3,592 | 7,019 |
| Change, SEK m | –106 | –746 | –643 | –1,104 | –2,821 |
| Change, % | –6 | –29 | –18 | –24 | –29 |
| Of which | |||||
| Volumes and prices, % | 0 | –37 | –13 | –32 | –33 |
| Acquisitions/divestments, % | 0 | 2 | 0 | 2 | 1 |
| Currency effects, % | 6 | 6 | –5 | 6 | 3 |
| SEK m | April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 |
|---|---|---|---|---|---|
| Nordic region | 776 | 754 | 1,337 | 1,509 | 2,986 |
| Western Europe | 513 | 557 | 926 | 1,206 | 2,220 |
| CEE/CIS | 353 | 412 | 547 | 692 | 1,487 |
| Other markets | 73 | 98 | 139 | 185 | 326 |
| Total | 1,715 | 1,821 | 2,949 | 3,592 | 7,019 |
| SEK m | April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 |
|---|---|---|---|---|---|
| Ventilation | 914 | 987 | 1,741 | 2,064 | 3,878 |
| Building Components | 607 | 550 | 885 | 951 | 2,144 |
| Building Systems | 194 | 277 | 323 | 561 | 978 |
| Other Operations | - | 7 | - | 16 | 19 |
| Total | 1,715 | 1,821 | 2,949 | 3,592 | 7,019 |
| Gross internal sales all segments | 6 | 5 | 11 | 12 | 28 |
| SEK m | April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 |
|---|---|---|---|---|---|
| Ventilation | 59 | 43 | 87 | 97 | 190 |
| Building Components | 70 | 28 | 36 | –2 | 135 |
| Building Systems | –3 | 29 | –37 | 37 | 7 |
| Other Operations | –16 | –3 | –26 | –10 | –31 |
| One-off items1) | –21 | –12 | 54 | –12 | –47 |
| Total (EBIT) | 89 | 85 | 114 | 110 | 254 |
| Net financial income | –42 | –34 | –82 | –65 | –135 |
| Result before tax (EBT) | 47 | 51 | 32 | 45 | 119 |
1) One-off items relating to the second quarter of 2010 mainly consist of restructuring costs.
For the first six months of 2010, there is an additional preliminary estimated capital gain of SEK 75 m on the sale of property in Luxembourg.
One-off items relating to 2009 comprise SEK 57 m for the cost reduction programme plus a return of SEK 10 m from the sale of Folke Perforering.
Sales revenue during the second quarter fell by 7 percent to SEK 914 m (987). Currency effects have reduced sales by 6 percentage points. The acquisition of IVK-Toute Oy has positively affected sales by 2 percentage points.
Demand within non-residential construction has been weak in most markets during the year, particularly in new construction which represents more than half of sales. The main regions for Ventilation, Nordic and Western Europe, both show stabilisation in demand but with large variations between countries. Positive signs are emerging from the Swedish market, while the Danish market continues to show a decline in demand.
The Finnish company acquired in the first quarter, IVK-Tuote Oy, has performed positively and the integration work has begun.
Sales for the first six months decreased by 16 percent to SEK 1,741 m (2,064). Adjusted for currency and structure the decrease was 11 percent.
Operating profit (EBIT) for the second quarter, excluding one-off items, increased to SEK 59 m (43), which is an increase of 37 percent compared with the previous year. The operating margin (EBIT) amounted to 6.5 percent (4.4). The improved margin can mainly be explained by lower fixed costs. One-off items amounted to SEK –11 m.
Price increases have been announced during the quarter to compensate for higher steel prices in the third quarter.
Operating profit (EBIT) for the half-year, excluding one-off items, amounted to SEK 87 m (97), which is a decrease of 10 percent.
During the second quarter, a reorganisation was completed in line with the new strategy. This involved a clearer distinction between supply and distribution.
| April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 914 | 987 | 1,741 | 2,064 | 3,878 |
| Operating profit (EBIT), SEK m1) | 59 | 43 | 87 | 97 | 190 |
| Operating margin (EBIT), %1) | 6.5 | 4.4 | 5.0 | 4.7 | 4.9 |
| No. of employees at close of period | 2,560 | 2,773 | 2,560 | 2,773 | 2,555 |
1) Operating profit (EBIT) for the second quarter of 2010 has been adjusted by SEK 11 m in restructuring costs. The operating profit (EBIT) for 2009 has been adjusted for one-off items of SEK 19 m relating to the cost-reduction programme.
Sales revenue rose by 10 percent to SEK 607 m (550) for the second quarter. Adjusted for currency fluctuations, sales increased by 15 percent during the quarter.
Building Components has noticed a gradually improved demand during the quarter, driven mainly by the important Swedish market. All regions have shown growth during the quarter. This growth is a combination of a recovery from the weak first quarter and an improvement in the underlying demand.
Sales for the first six months decreased by 7 percent to SEK 885 m (951). Adjusted for currency and structure the decrease was 3 percent.
Operating profit (EBIT) for the quarter, excluding one-off items, amounted to SEK 70 m (28), which is an improvement of 150 percent compared with the previous year. The operating margin (EBIT) amounted to 11.5 percent (5.1) for the quarter. The second quarter of 2009 included one-off items of SEK –12 m relating to the closure of the production facility in Edsvära, Sweden.
Higher volumes are the main reason for the increased profit. Price increases have been announced during the quarter to compensate for higher steel prices in the third quarter.
Operating profit (EBIT) for the first half-year, excluding one-off items amounted to SEK 36 m (–2).
Market activities that took place during the quarter to support the new strategy include the opening of more than 30 new Rainline Centres in Eastern Europe and new agreements with builders' merchants in the Nordic countries, providing an additional 250 potential sales outlets.
| April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 607 | 550 | 885 | 951 | 2,144 |
| Operating profit (EBIT), SEK m1) | 70 | 28 | 36 | –2 | 135 |
| Operating margin (EBIT), %1) | 11.5 | 5.1 | 4.1 | –0.2 | 6.3 |
| No. of employees at close of period | 1,038 | 1,122 | 1,038 | 1,122 | 1,003 |
1) Operating profit (EBIT) for 2009 has been adjusted with one-off costs of SEK 12 m relating to Lindab Plåt in Edsvära, as part of the cost reduction programme.
Sales revenue fell by 30 percent to SEK 194 m (277) during the second quarter. Currency effects have negatively affected sales by 6 percent during the quarter.
Market conditions for Building Systems continue to be difficult, with the main market for the new construction of industrial buildings remaining weak in general. However, the order intake during the quarter has gradually improved, driven mainly by the Russian market.
Sales for the first six months decreased by 42 percent to SEK 323 m (561). Adjusted for currency and structure the decrease was 37 percent.
Operating profit (EBIT) for the period, excluding one-off items, amounted to SEK –3 m (29). The operating margin (EBIT) amounted to –1.5 percent (10.5) for the quarter. One-off items amounted to SEK -10 m (0) and refer primarily to costs relating to the closure of the production unit in Hungary.
The lower profit is explained by decreased volumes.
The cost reduction programme of SEK 40 m that was announced in the first quarter will not be fully implemented since the order intake has strengthened. Some of the planned measures including reduced working hours may not be implemented since resources are needed for the expected volume increases.
Operating profit (EBIT) for the first half-year, excluding one-off items, amounted to SEK –37 m (37).
In the first quarter, a property was sold in Luxembourg generating SEK 285 m in cash flow and a capital gain of SEK 73 m. A lease-back agreement was simultaneously agreed for the same property.
Increased focus on direct sales in Russia has generated two large orders during the quarter, which is in line with the updated strategy.
| April-June 2010 | April-June 2009 | Jan-June 2010 | Jan-June 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 194 | 277 | 323 | 561 | 978 |
| Operating profit (EBIT), SEK m1) | –3 | 29 | –37 | 37 | 7 |
| Operating margin (EBIT), %1) | –1.5 | 10.5 | –11.5 | 6.6 | 0.7 |
| No. of employees at close of period | 739 | 872 | 739 | 872 | 756 |
1) Operating profit (EBIT) for the second quarter of 2010 has been adjusted by SEK 10 m, primarily relating to costs for the closure of the Building Systems facility in Hungary.
For the first six months of 2010, there is an additional preliminary estimated capital gain of SEK 75 m on the sale of property in Luxembourg.
| Amounts in SEK m | April-June 2010 April-June 2009 Jan-June 2010 Jan-June 2009 | Rolling 12 M July 2009– June 2010 |
Jan-Dec 2009 | |||
|---|---|---|---|---|---|---|
| Sales revenue | 1,715 | 1,821 | 2,949 | 3,592 | 6,376 | 7,019 |
| Cost of goods sold | –1,228 | –1,329 | –2,141 | –2,645 | –4,633 | –5,137 |
| Gross profit | 487 | 492 | 808 | 947 | 1,743 | 1,882 |
| Other operating income | 36 | 31 | 139 | 87 | 197 | 145 |
| Selling expenses | –234 | –250 | –468 | –532 | –972 | –1,036 |
| Administrative expenses | –138 | –127 | –263 | –282 | –520 | –539 |
| R & D costs | –9 | –13 | –18 | –26 | –39 | –47 |
| Other operating expenses | –53 | –48 | –84 | –84 | –151 | –151 |
| Operating profit (EBIT)1) | 89 | 85 | 114 | 110 | 258 | 254 |
| Interest income | 2 | 3 | 3 | 6 | 10 | 13 |
| Interest expenses | –45 | –35 | –87 | –68 | –161 | –142 |
| Other financial income and expenses | 1 | –2 | 2 | –3 | –1 | –6 |
| Net financial income | –42 | –34 | –82 | –65 | –152 | –135 |
| Result before tax (EBT) | 47 | 51 | 32 | 45 | 106 | 119 |
| Tax | –20 | –38 | –33 | –53 | –65 | –85 |
| After tax result | 27 | 13 | –1 | –8 | 41 | 34 |
| –thereof attributable to parent company | ||||||
| shareholders | 27 | 13 | –1 | –8 | 41 | 34 |
| Other comprehensive income | ||||||
| Cash flow hedges | –4 | - | –15 | - | –26 | –11 |
| Translation differences, foreign operations | –50 | 40 | –171 | –13 | –326 | –168 |
| Income tax attributable to cash flow hedges | 1 | - | 4 | - | 7 | 3 |
| Other comprehensive income | –53 | 40 | –182 | –13 | –345 | –176 |
| Total comprehensive income | –26 | 53 | –183 | –21 | –304 | –142 |
| –thereof attributable to parent company | ||||||
| shareholders | –26 | 53 | –183 | –21 | –304 | –142 |
| Earnings per share, SEK | ||||||
| Undiluted | 0.36 | 0.17 | –0.01 | –0.11 | 0.55 | 0.45 |
| Diluted | 0.36 | 0.17 | –0.01 | –0.11 | 0.55 | 0.45 |
| Dilutive effects have not been taken into account for share warrants in incentive programmes since the current share price is lower than the conversion rates in each of the programmes. | ||||||
| 1) The operating profit (EBIT) has been affected by one-off items amounting to: |
–21 | –12 | 54 | –12 | 19 | –47 |
Operating profit (EBIT) excl. one-off items 110 97 60 122 239 301
One-off items relating to the second quarter of 2010 mainly consist of restructuring costs. For the first six months of 2010, there is an additional preliminary estimated capital gain of SEK 75 m on the sale of property
in Luxembourg.
One-off items relating to 2009 comprise SEK 57 m for the cost reduction programme, plus a return of SEK 10 m from the sale of Folke Perforering.
| Amounts in SEK m | 30 June 2010 | 30 June 2009 | 31 Dec 2009 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Goodwill | 2,813 | 2,997 | 2,922 |
| Other intangible fixed assets | 51 | 68 | 61 |
| Tangible fixed assets1) | 1,230 | 1,670 | 1,336 |
| Financial fixed assets, interest bearing | 25 | 7 | 25 |
| Other financial fixed assets | 398 | 388 | 454 |
| Total fixed assets | 4,517 | 5,130 | 4,798 |
| Current assets | |||
| Stock | 1,106 | 1,199 | 896 |
| Accounts receivable | 1,200 | 1,259 | 976 |
| Other current assets | 356 | 305 | 304 |
| Other receivables, interest bearing | 22 | 26 | 3 |
| Non-current assets held for sale1) | 0 | - | 217 |
| Cash and bank | 281 | 307 | 248 |
| Total current assets | 2,965 | 3,096 | 2,644 |
| TOTAL ASSETS | 7,482 | 8,226 | 7,442 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,869 | 3,119 | 3,003 |
| Long-term liabilities | |||
| Interest-bearing provisions | 126 | 107 | 133 |
| Interest-bearing liabilities | 2,198 | 2,983 | 2,384 |
| Provisions | 368 | 365 | 444 |
| Other long-term liabilities | 13 | 16 | 15 |
| Total long-term liabilities | 2,705 | 3,471 | 2,976 |
| Current liabilities | |||
| Interest-bearing liabilities | 247 | 156 | 181 |
| Provisions | 60 | 88 | 74 |
| Accounts payable | 815 | 621 | 550 |
| Other short-term liabilities | 786 | 771 | 658 |
| Total current liabilities | 1,908 | 1,636 | 1,463 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 7,482 | 8,226 | 7,442 |
1) Non-current assets held for sale at 31-12-2009 refer to the Building Systems production facilities in Nyiregyháza, Hungary and in Diekirch, Luxembourg.
(Indirect method)
| Amounts in SEK m | April-June 2010 April-June 2009 Jan-June 2010 Jan-June 2009 | Rolling 12 M July 2009– June 2010 |
Jan-Dec 2009 | |||
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Operating profit | 89 | 85 | 114 | 110 | 258 | 254 |
| Reversal of depreciation/amortisation | 45 | 56 | 92 | 112 | 205 | 225 |
| Reversal of capital gains (–) / losses (+) | ||||||
| reported in operating profit | 7 | –1 | –90 | 0 | –87 | 3 |
| Provisions, not affecting cash flow | –4 | –35 | –22 | –63 | –26 | –67 |
| Adjustment for other items not affecting cash flow |
4 | 8 | 44 | –8 | 46 | –6 |
| Total | 141 | 113 | 138 | 151 | 396 | 409 |
| Interest received | 6 | 3 | 6 | 3 | 14 | 11 |
| Interest paid | –32 | –40 | –76 | –92 | –144 | –160 |
| Tax paid | –14 | –3 | –57 | –98 | –83 | –124 |
| Cash flow from operating activities before | ||||||
| change in working capital | 101 | 73 | 11 | –36 | 183 | 136 |
| Change in working capital | ||||||
| Stock (increase – /decrease +) | –93 | 313 | –234 | 446 | 42 | 722 |
| Operating receivables (increase – /decrease +) | –193 | –5 | –329 | –4 | –23 | 302 |
| Operating liabilities (increase + /decrease –) | 252 | –49 | 447 | –261 | 267 | –441 |
| Total change in working capital | –34 | 259 | –116 | 181 | 286 | 583 |
| Cash flow from operating activities | 67 | 332 | –105 | 145 | 469 | 719 |
| Investing activities | ||||||
| Acquisition of Group companies | 0 | –12 | 4 | –13 | –28 | –45 |
| Divestment of operations | - | - | - | - | 15 | 15 |
| Investments in intangible fixed assets | –3 | –6 | –5 | –9 | –16 | –20 |
| Investments in tangible fixed assets | –24 | –32 | –40 | –98 | –104 | –162 |
| Change in financial fixed assets | 0 | 0 | 0 | 0 | 1 | 1 |
| Sale/disposal of intangible fixed assets | 0 | 0 | 0 | 0 | 2 | 2 |
| Sale/disposal of tangible fixed assets | 24 | 6 | 310 | 12 | 319 | 21 |
| Cash flow from investing activities | –3 | –44 | 269 | –108 | 189 | –188 |
| Financing activities | ||||||
| Increase +/decrease – in borrowing | 28 | –28 | –120 | 218 | –678 | –340 |
| Warrant premium payments | 6 | - | 6 | - | 11 | 5 |
| Dividend to shareholders | - | –206 | - | –206 | - | –206 |
| Cash flow from financing activities | 34 | –234 | –114 | 12 | –667 | –541 |
| Cash flow for the period | 98 | 54 | 50 | 49 | –9 | –10 |
| Cash and cash equivalents at start of the period | 193 | 249 | 248 | 258 | 307 | 258 |
| Effect of exchange rate changes on cash and | ||||||
| cash equivalents Cash and cash equivalents at end of the period |
–10 281 |
4 307 |
–17 281 |
0 307 |
–17 281 |
0 248 |
| 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 2009 | 79 | 2,239 | - | 540 | 488 | 3,346 |
| Total comprehensive income | –8 | –168 | 34 | –142 | ||
| Premiums for warrants1) | 5 | 5 | ||||
| Dividend to shareholders | –206 | –206 | ||||
| Closing balance, 31 December 2009 | 79 | 2,244 | –8 | 372 | 316 | 3,003 |
| Opening balance, 1 January 2010 | 79 | 2,244 | –8 | 372 | 316 | 3,003 |
| Total comprehensive income | –11 | –171 | –1 | –183 | ||
| Premiums for warrants2) | 6 | 6 | ||||
| Transfer of treasury shares in company acquisition | 43 | 43 | ||||
| Closing balance, 30 June 2010 | 79 | 2,250 | –19 | 201 | 358 | 2,869 |
1) The Annual General Meeting in 2009 resolved to issue 784,000 warrants to senior executives. SEK 5 m has been received as payment regarding these.
2) The Annual General Meeting in 2010 resolved to issue 784,000 warrants to senior executives. SEK 6 m has been received as payment regarding these
The Annual General Meeting held of 11 May 2010 resolved that no dividend would be paid to shareholders.
The 2010 Annual General Meeting resolved to continue the three year incentive programme that was introduced in 2008. The programme has the same structure as the ones subscribed to in 2008 and 2009.
The Finnish company IVK-Tuote Oy was acquired at the end of March. The purchase price amounted to EUR 4.4 m, equivalent to SEK 43 m, which was paid through the transfer of 559,553 treasury shares. Following this transfer, the holding of treasury shares amounts to 3,375,838 (3,935,391), equivalent to 4.3 percent (5.0) of the total number of Lindab shares.
| Amounts in SEK m | April-June 2010 April-June 2009 Jan-June 2010 Jan-June 2009 | Jan-Dec 2009 | |||
|---|---|---|---|---|---|
| Administrative expenses | –3 | –5 | –4 | –8 | –15 |
| Other operating expenses | - - |
- | –1 | - | |
| Operating profit | –3 | –5 | –4 | –9 | –15 |
| Profit from subsidiaries | - - |
- | - | 186 | |
| Interest expenses, internal | –21 | –11 | –41 | –21 | –40 |
| Result before tax | –24 | –16 | –45 | –30 | 131 |
| Tax on profit for the period | 7 | 4 | 12 | 7 | –4 |
| After tax result | –17 | –12 | –33 | –23 | 127 |
| Amounts in SEK m | 30 June 2010 | 30 June 2009 | 31 Dec 2009 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Shares in Group companies | 3,467 | 3,467 | 3,467 |
| Financial fixed assets, interest bearing | 11 | - | 11 |
| Other long-term receivables | 14 | 7 | 2 |
| Total fixed assets | 3,492 | 3,474 | 3,480 |
| Current assets | |||
| Other receivables | 9 | 20 | 18 |
| Cash and bank | 1 | - | 0 |
| Total current assets | 10 | 20 | 18 |
| TOTAL ASSETS | 3,502 | 3,494 | 3,498 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 1,440 | 1,281 | 1,430 |
| Long-term liabilities | |||
| Interest-bearing provisions | 11 | - | 11 |
| Liabilities to Group companies | 2,046 | 2,204 | 2,051 |
| Total long-term liabilities | 2,057 | 2,204 | 2,062 |
| Current liabilities | |||
| Non-interest-bearing liabilities | 5 | 9 | 6 |
| Total current liabilities | 5 | 9 | 6 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,502 | 3,494 | 3,498 |
| Quarterly Periods | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2008 | ||||||||
| April | Jan | Oct | July | April | Jan | Oct | July | April | Jan | |
| SEK m unless otherwise specified | June | March | Dec | Sept | June | March | Dec | Sept | June | March |
| Sales revenue | 1,715 | 1,234 | 1,602 | 1,825 | 1,821 | 1,771 | 2,427 | 2,717 | 2,567 | 2,129 |
| Operating profit, (EBITDA)1) | 134 | 72 | 92 | 165 | 142 | 80 | 182 | 496 | 448 | 262 |
| Operating profit, (EBITA)2) | 92 | 27 | 37 | 113 | 88 | 27 | 117 | 447 | 399 | 209 |
| Depreciation/amortisation | 45 | 47 | 57 | 56 | 56 | 56 | 66 | 52 | 52 | 55 |
| Operating profit, (EBIT)3) | 89 | 25 | 34 | 110 | 85 | 25 | 115 | 445 | 396 | 207 |
| Operating profit, (EBIT), excluding one-off items | 110 | –50 | 34 | 145 | 97 | 25 | 218 | 458 | 396 | 207 |
| After tax result | 27 | –28 | 5 | 37 | 13 | –21 | 46 | 294 | 266 | 117 |
| Total comprehensive income | –26 | –157 | 29 | –150 | 53 | –74 | 295 | 404 | 345 | 80 |
| Operating margin (EBITA), %4) | 5.4 | 2.2 | 2.3 | 6.2 | 4.8 | 1.5 | 4.8 | 16.5 | 15.5 | 9.8 |
| Operating margin (EBIT), %5) | 5.2 | 4.7 | 15.4 | |||||||
| 2.0 | 2.1 | 6.0 | 1.4 | 4.7 | 16.4 | 9.7 | ||||
| Operating margin (EBIT), excluding one-off items, % | 6.4 | –4.1 | 2.1 | 7.9 | 5.3 | 1.4 | 9.0 | 16.9 | 15.4 | 9.7 |
| Undiluted average number of shares, (000's) | 75,332 | 74,810 | 74,772 | 74,772 | 74,772 | 74,772 | 75,299 | 77,502 | 78,708 | 78,708 |
| Diluted average number of shares, (000's)6) | 75,332 | 74,810 | 74,772 | 74,772 | 74,772 | 74,772 | 75,299 | 77,502 | 78,708 | 78,708 |
| Undiluted number of shares, (000's) | 75,332 | 75,332 | 74,772 | 74,772 | 74,772 | 74,772 | 74,772 | 75,770 | 78,708 | 78,708 |
| Diluted number of shares, (000's) | 75,332 | 75,332 | 74,772 | 74,772 | 74,772 | 74,772 | 74,772 | 75,770 | 78,708 | 78,708 |
| Undiluted earnings per share, SEK7) | 0.36 | –0.37 | 0.07 | 0.49 | 0.17 | –0.28 | 0.61 | 3.79 | 3.38 | 1.49 |
| Diluted earnings per share, SEK8) | 0.36 | –0.37 | 0.07 | 0.49 | 0.17 | –0.28 | 0.61 | 3.79 | 3.38 | 1.49 |
| Cash flow from operating activities | 67 | –172 | 245 | 329 | 332 | –187 | 220 | 127 | 317 | 17 |
| Cash flow from operating activities per share, SEK9) | 0.89 | –2.30 | 3.28 | 4.40 | 4.44 | –2.50 | 2.92 | 1.64 | 4.03 | 0.22 |
| Total assets | 7,482 | 7,206 | 7,442 | 7,781 | 8,226 | 8,492 | 8,625 | 9,059 | 8,320 | 7,652 |
| Net debt10) | 2,243 | 2,286 | 2,422 | 2,600 | 2,906 | 3,004 | 2,774 | 2,863 | 2,430 | 2,270 |
| Net debt/equity ratio, times11) | 0.8 | 0.8 | 0.8 | 0.9 | 0.9 | 0.9 | 0.8 | 0.9 | 0.8 | 0.7 |
| Equity | 2,869 | 2,889 | 3,003 | 2,969 | 3,119 | 3,272 | 3,346 | 3,102 | 2,995 | 3,049 |
| Undiluted equity per share, SEK12) | 38.08 | 38.35 | 40.16 | 39.71 | 41.71 | 43.76 | 44.75 | 40.94 | 38.05 | 38.74 |
| Diluted equity per share, SEK13) | 38.08 | 38.35 | 40.16 | 39.71 | 41.71 | 43.76 | 44.75 | 40.94 | 38.05 | 38.74 |
| Equity/asset ratio, %14) | 38.3 | 40.1 | 40.4 | 38.2 | 37.9 | 38.5 | 38.8 | 34.2 | 36.0 | 39.8 |
| Return on equity, %15) | 1.4 | 0.9 | 1.1 | 2.4 | 10.5 | 18.6 | 23.4 | 31.3 | 33.9 | 33.8 |
| Return on capital employed, %16) | 4.7 | 4.5 | 4.3 | 5.4 | 10.9 | 16.0 | 20.0 | 25.0 | 25.3 | 24.4 |
| Return on operating capital, %17) | 4.7 | 4.5 | 4.3 | 5.6 | 11.2 | 16.9 | 20.7 | 26.0 | 26.3 | 25.3 |
| Return on operating capital, excluding one-off items, % | 4.4 | 4.0 | 5.1 | 8.1 | 13.4 | 18.8 | 22.8 | 26.3 | 26.3 | 25.3 |
| Return on (total) assets, %18) | 3.5 | 3.4 | 3.3 | 4.0 | 8.0 | 11.6 | 14.3 | 17.7 | 18.0 | 17.5 |
| Interest coverage ratio, times19) | 2.0 | 0.6 | 1.0 | 3.1 | 2.5 | 0.1 | 2.0 | 9.2 | 9.6 | 5.0 |
| No. of employees at close of period20) | 4,444 | 4,394 | 4,435 | 4,714 | 4,898 | 4,981 | 5,291 | 5,576 | 5,366 | 5,206 |
*) Operating profit (EBITA) reported excluding one-off items, as reported originally.
16
4) The operating margin (EBITA) has been calculated as operating profit (EBITA) as a percentage of sales revenue during 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.
| Year-to-date Jan-June | Full-year Periods | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 April June |
2006 2005 April April June June |
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | 2007 | 2006 | 2005 |
| 2,329 | 1,918 1,494 |
2,949 | 3,592 | 4,696 | 4,301 | 3,412 | 2,675 | 7,019 | 9,840 | 9,280 | 7,609 | 6,214 |
| 382 | 284 178 |
206 | 222 | 710 | 619 | 419 | 244 | 479 | 1,388 | 1,512 | 1,103 | 751 |
| 332 | 235 130 |
119 | 115 | 608 | 520 | 320 | 150 | 265 | 1,172 | 1,318 | 942* | 553* |
| 52 | 51 48 |
92 | 112 | 107 | 104 | 104 | 94 | 225 | 225 | 203 | 209 | 194 |
| 330 | 233 130 |
114 | 110 | 603 | 515 | 315 | 150 | 254 | 1,163 | 1,309 | 894 | 557 |
| 330 | 233 130 |
60 | 122 | 603 | 515 | 315 | 150 | 301 | 1,279 | 1,309 | 933 | 550 |
| 221 | 158 74 |
–1 | –8 | 383 | 333 | 209 | 77 | 34 | 723 | 901 | 585 | 351 |
| 213 | 59 162 |
–183 | –21 | 425 | 421 | 72 | 214 | –142 | 1,124 | 1,035 | 439 | 485 |
| 14.3 | 12.3 8.7 |
4.0 | 3.2 | 12.9 | 12.1 | 9.4 | 5.6 | 3.8 | 11.9 | 14.2 | 12.4* | 8.9* |
| 14.2 | 12.1 8.7 |
3.9 | 3.1 | 12.8 | 12.0 | 9.2 | 5.6 | 3.6 | 11.8 | 14.1 | 11.7 | 9.0 |
| 14.2 | 12.1 8.7 |
2.0 | 3.4 | 12.8 | 12.0 | 9.2 | 5.6 | 4.3 | 13.0 | 14.1 | 12.3 | 8.9 |
| 78,708 | 75,168 120,000 | 75,072 | 74,772 | 78,708 | 78,708 | 97,583 120,000 | 74,772 | 77,548 | 78,708 | 90,702 120,000 | ||
| 78,708 | 78,708 122,940 | 75,072 | 74,772 | 78,708 | 78,708 | 99,538 122,940 | 74,772 | 77,548 | 78,708 | 93,062 122,940 | ||
| 78,708 | 75,168 120,000 | 75,332 | 74,772 | 78,708 | 78,708 | 75,168 120,000 | 74,772 | 74,772, | 78,708 | 78,708 120,000 | ||
| 78,708 | 78,708 122,940 | 75,332 | 74,772 | 78,708 | 78,708 | 78,708 122,940 | 74,772 | 74,772 | 78,708 | 78,708 122,940 | ||
| 2.81 | 2.10 0.62 |
–0.01 | –0.11 | 4.87 | 4.23 | 2.14 | 0.64 | 0.45 | 9.32 | 11.45 | 6.45 | 2.93 |
| 2.81 | 2.01 0.60 |
–0.01 | –0.11 | 4.87 | 4.23 | 2.10 | 0.63 | 0.45 | 9.32 | 11.45 | 6.29 | 2.86 |
| 193 | 311 99 |
–105 | 145 | 326 | 36 | 269 | –112 | 719 | 673 | 875 | 778 | 730 |
| 2.45 | 4.14 0.83 |
–1.40 | 1.94 | 4.14 | 0.46 | 2.76 | –0.85 | 9.62 | 8.68 | 11.12 | 8.58 | 6.08 |
| 7,878 | 6,788 5,823 |
7,482 | 8,226 | 8,320 | 7,878 | 6,788 | 5,823 | 7,442 | 8,625 | 7,700 | 7,082 | 6,606 |
| 2,903 | 2,860 2,030 |
2,243 | 2,906 | 2,430 | 2,903 | 2,860 | 2,030 | 2,422 | 2,774 | 2,238 | 2,602 | 1,846 |
| 1.2 | 1.6 0.8 |
0.8 | 0.9 | 0.8 | 1.2 | 1.6 | 0.8 | 0.8 | 0.8 | 0.8 | 1.2 | 0.7 |
| 2,355 | 1,732 2,511 |
2,869 | 3,119 | 2,995 | 2,355 | 1,732 | 2,511 | 3,003 | 3,346 | 2,969 | 2,190 | 2,853 |
| 29.92 | 23.04 20.93 |
38.08 | 41.71 | 38.05 | 29.92 | 23.04 | 20.93 | 40.16 | 44.75 | 37.72 | 27.82 | 23.77 |
| 29.92 | 22.01 20.42 |
38.08 | 41.71 | 38.05 | 29.92 | 22.01 | 20.42 | 40.16 | 44.75 | 37.72 | 27.82 | 23.21 |
| 29.9 | 25.5 43.1 |
38.3 | 37.9 | 36.0 | 29.9 | 25.5 | 43.1 | 40.4 | 38.8 | 38.6 | 30.9 | 43.7 |
| 33.2 | 19.0 10.2 |
1.4 | 10.5 | 33.9 | 33.2 | 19.0 | 10.2 | 1.1 | 23.4 | 35.9 | 25.1 | 13.7 |
| 21.5 | 14.8 11.3 |
4.7 | 10.9 | 25.3 | 21.5 | 14.8 | 11.3 | 4.3 | 20.0 | 24.5 | 18.2 | 11.9 |
| 22.4 | 15.4 9.8 |
4.7 | 11.2 | 26.3 | 22.4 | 15.4 | 9.8 | 4.3 | 20.7 | 25.4 | 19.1 | 12.2 |
| 23.2 | 15.0 9.8 |
4.4 | 13.4 | 26.3 | 23.2 | 15.0 | 9.8 | 5.1 | 22.8 | 25.4 | 19.9 | 11.8 |
| 15.3 | 11.2 9.0 |
3.5 | 8.0 | 18.0 | 15.3 | 11.2 | 9.0 | 3.3 | 14.3 | 17.4 | 13.3 | 9.4 |
| 9.3 | 8.3 6.6 |
1.4 | 1.7 | 7.3 | 7.4 | 6.8 | 3.8 | 1.8 | 6.1 | 8.6 | 8.4 | 6.9 |
| 5,069 | 4,144 3,553 |
4,444 | 4,898 | 5,366 | 5,069 | 4,144 | 3,553 | 4,435 | 5,291 | 5,256 | 4,942 | 4,479 |
*) Average capital is based on the quarterly values.
The consolidated accounts for the first quarter of 2010, as for the annual accounts for 2009, have been prepared in accordance with the international financial reporting standards (IFRS) as adopted by the EU, the Annual Accounts Act and the Swedish Financial Reporting Board RFR 1.2, Supplementary Accounting Rules for Groups. However, from 1 January 2010 the name has been changed to RFR 1.3.
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 2009 with the following exceptions, owing to new or revised standards, interpretations and improvements that have been adopted by the EU and which must be applied from 1 January 2010. Only those changes that have had an effect on the Group are presented.
The parent company's financial statements are prepared in accordance with the Annual Accounts Act and RFR 2.3, Accounting for Legal Entities. Changes have been introduced in both regulatory frameworks from 1 January 2010. The Swedish Financial Accounting Standards Council has decided that the accounts must comply with IAS 1 as far as possible; however the alternative with an income statement and a separate statement of comprehensive income must be applied. The changes have not had any effect on the reports in question and they can be considered to have been prepared according to the same principles that were applied to the Annual Report for 2009.
IFRS 3, Business Combinations (revised) The revised standard continues to require the application of the acquisition method for business combinations but with some substantial changes. All payments when buying a business must be carried at fair value on the acquisition date, while subsequent contingent payments are to be classified as liabilities that are subsequently re-evaluated via the income statement. All transaction costs relating to acquisitions must be carried as expenses. Holdings without a controlling interest in an acquired business may, optionally for each acquisition, be valued either at fair value or at the proportional share of the net assets of the acquired business, held by the bearer without a controlling interest.
The revised standard is applicable for financial years commencing from 1 July 2009. These changes have been taken into account for the acquisition made in the first quarter.
The standard has changed regarding the reporting of changes in equity in subsidiaries, transactions with minority shareholders, and loss of control. The new rules will apply when relevant, but they have not had any direct impact on Lindab in this interim report.
Significant estimates and assumptions are described in Note 4 in the Annual Report for 2009.
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. From January 2010, Lindab reports in three segments: the business areas of Ventilation, Building Components and Building Systems (the latter two formerly constituted the Profile business area).
The Ventilation business area covers the Group's entire ventilation and indoor climate operations. The Building Components business area provides the construction industry with complete systems for roof drainage, lightweight construction and roof and facade solutions in steel. The Building Systems business area produces and sells preengineered steel building systems. Other comprises parent company functions including Group Treasury. Until 2009 also certain steel processing for external customers.
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. The assets of each segment for the sixmonth period were slightly lower or unchanged compared with the corresponding period last year and at the end of 2009. The biggest changes are in the stock value compared with the corresponding period last year, and in fixed assets compared to the end of 2009.
Lindab's inner circle and the extent of transactions with related parties are described in note 30 of the 2009 Annual Report.
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.
The Board of Directors and the CEO confirm that the half year report gives an accurate summary of the Company's and the Group's activities, position and results and describes the noteworthy risks and uncertainties faced by the Company and companies that are included within the Group.
Båstad 15 July 2010
Svend Holst-Nielsen Chairman
Ulf Gundemark Anders C. Karlsson Stig Karlsson
David Brodetsky President and CEO
Erik Eberhardson Per Frankling
Annette Sadolin
Pontus Andersson Markku Rantala
The report has not been subject to an audit by Lindab's auditors.
Interim Report January–October, Q3 1 November Fourth quarter and Year End Report 2010 February 2011 Annual Report 2010 March/April 2011
David Brodetsky, CEO Nils-Johan Andersson, CFO Phone +46 (0) 431 850 00 Phone +46 (0) 431 850 00
Email [email protected] Email [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 16 July 2010 at 07.40.
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 7,019 m in 2009, was established in 31 countries and had approximately 4,500 employees.
The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2009, the Nordic market accounted for 42 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 21 percent, Western Europe for 32 percent and other markets for 5 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Large 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.
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 Email [email protected] www.lindabgroup.com
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