Earnings Release • Oct 29, 2008
Earnings Release
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Net sales during the third quarter amounted to SEK 2,717 m, which is an increase of 9 per cent compared with the corresponding period the previous year. The increase in net sales, adjusted for currency effects and structural changes, amounted to 5 per cent. Currency effects have increased net sales by 1 percentage point during the period. Acquisitions contributed to the net sales increase by 3 percentage points. Price increases have been implemented during the period.
During the quarter, sales in the Nordic region have risen by 4 per cent. The increase in net sales in the CEE/CIS amounted to 19 per cent, 6 percentage points of which was accounted for by the acquisition of SIPOG. Sales in Western Europe increased by 5 per cent.
Demand within non-residential construction, which is Lindab's main market corresponding to 80 per cent of sales, has weakened slightly during the quarter but continues to show growth. Demand remains weak within residential construction, which accounts for the remaining 20 per cent of sales.
Turbulence in fi nancial markets has not resulted in any further weakening of demand for Lindab products. Due to the risk of weakening in Lindab's markets in 2009, Lindab has initiated a review of the cost structure in the company.
During the quarter, the price of sheet steel,
which is the most important of Lindab's input goods, has continued to increase. Lindab has implemented price increases to offset the cost increase. Price indications for the coming quarters now point to a decline in the steel price.
Net sales for the period January–September amounted to SEK 7,413 m, which is an increase of 9 per cent compared with the corresponding period the previous year. The increase in net sales for comparable units amounted to 7 per cent. Currency effects during the fi rst nine months of the year were marginal.
The operating profi t (EBIT) for the third quarter, excluding one-off items, amounted to SEK 458 m (424), which is an increase of 8 per cent compared with the previous year. During the quarter, costs related to the change of CEO were recorded that have affected the profi t by SEK 13 m. The profi t including this one-off item amounts to SEK 445 m, which is an increase of 5 per cent compared with the corresponding period the previous year.
The operating margin (EBIT) for the period July–September, adjusted for one-off items, amounted to 16.9 per cent. During the corresponding period the previous year, the margin amounted to 17.0 per cent.
Profi t after fi nancial items improved to SEK 402 m (390). The after-tax profi t amounted to
Following the third quarter, the rolling twelvemonth operating profi t excluding one-off items amounted to SEK 1,431 m. Including one-off items, the profi t was SEK 1,418 m. The corresponding operating margins amounted to 14.5 and 14.3 per cent respectively.
The operating profi t (EBIT) for the period January–September, excluding one-off items, amounted to SEK 1,061 m, which is an increase of 13 per cent compared with the previous year's profi t of SEK 939 m.
The operating margin (EBIT) for the same period, excluding one-off items, amounted to 14.3 per cent (13.8).
Profi t after fi nancial items increased to SEK 931 m (842). The after-tax profi t amounted to SEK 677 m (654). Earnings per share amounted to SEK 8.65 (8.31).
Lindab's operations are affected by seasonal variations in the construction industry, and the greatest proportion of sales is therefore seen during the second half of the year. The most substantial seasonal variations are to be found within the Profi le business area. The Ventilation business area is less dependent on seasons and the weather since the installation of ventilation systems is mainly carried
out indoors. During 2007 and 2008 however, the milder weather has had a positive effect, mostly in the fi rst quarter. There is normally a deliberate build-up of stock levels during the fi rst quarter, which gradually becomes a stock decrease during the second and third quarters as the result of increased activity within the construction industry.
Net investments for the quarter, including acquisitions and divestments, amounted to SEK 220 m (37).
Excluding acquisitions, net investments amounted to SEK 60 m (37), which was predominantly expansion investments. The higher level of investment compared with the previous year relates primarily to the investment in the new production facility in Russia for the Building Systems division within the Profi le business area.
Net investments for the period January– September, including acquisitions, amounted to SEK 349 m (107), excluding acquisitions, investment amounted to SEK 169 m (100). Acquisitions during the nine-month period comprise Koto-Pelti Oy for SEK 20 m and SIPOG a.s. for SEK 160 m. During the corresponding period in 2007, an additional earnout payment of SEK 4 m was made for Lindab Butler (2005), and a fi nal settlement of SEK 3 m was made relating to the acquisitions of CCL Veloduct Ltd and Airbat S.A. (2006).
Cash fl ow from operating activities amounted to SEK 127 m for the quarter compared with SEK 264 m for the same period the previous year. The principal explanation for the lower cash fl ow is that the working capital tied up increased by SEK 199 m during the quarter, which is SEK 133 m more than the increase during the same period the previous year. The biggest single change was the operating liabilities, which decreased by SEK 8 m during the third quarter of 2008 and increased by SEK 145 m during the corresponding period in 2007.
Historically, Lindab has a strong cash fl ow during the third quarter. The increases in stock, operating receivables and liabilities that were observed in the second quarter of 2008 have also decreased. During the current and previous year however, the stock level has increased during the third quarter. This is due to both increased steel prices and volumes. The cost compensation for the increased steel prices has also led to higher operating receivables. At the beginning of the period, operating liabilities were also higher for the same reasons, but efforts to reduce the stock have resulted in an overall decline in operating liabilities during the period.
Cash fl ow from investing activities for the quarter amounted to SEK –220 m (–37).
Cash fl ow from operating activities for the nine-month period amounted to SEK 453 m (300).
The cash fl ow from investing activities amounted to SEK –349 m (–107), SEK –169 m (–100) when adjusted for acquisitions.
Financing activities amounted to SEK –163 m (–143). The biggest single items were the dividend to shareholders of SEK 413 m and the acquisition of SEK 292 m of own shares (amount paid).
The net debt was SEK 2,863 m (2,679) at 30 September 2008.
The equity ratio amounted to 34 per cent (33)
and the net debt-equity ratio to 0.92 (1.01) at 30 September.
Net fi nancial income during the quarter was SEK –43 m (–34). The weaker net fi nancial income was due to higher market rates of interest. For the nine-month period, the net fi nancial income amounted to SEK –117 m (–97).
In December 2007, Lindab signed a binding fi ve-year credit agreement with Nordea and Handelsbanken, representing a facility of SEK 4,500 m.
Available funds, including unused credit facilities amounted to SEK 2,068 m (1,064).
The acquisition of SIPOG a.s. in Slovakia, which was announced at the beginning of May, was consolidated on 1 September. The development of SIPOG during the third quarter has been good. SIPOG produces roof and wall cladding as well as roof drainage systems. Through this acquisition, Lindab becomes the market leader in Slovakia with access to cost effective production as well as an increased distribution network. The acquisition also reinforces the position in Romania and the Czech Republic.
SIPOG has 190 employees and comprises six companies located in Slovakia, Romania, Czech Republic and Hungary. During the last fi nancial year, the Group had net sales of EUR 37 m and an operating profi t (EBIT) of EUR 4.7 m. The purchase price for the shares may be up to a maximum of EUR 22 m. The fi rst part-payment of EUR 18 m was made on 11 September and acquisition costs have been recorded in addition. The acquisition means that the net debt increased by SEK 200 m and consolidated goodwill increased by SEK 34 m.
On 1 June, the distribution business of O.J&C in Houston, USA was acquired. The business has annual net sales of USD 3.6 m and employs nine people. The purchase price is expected to amount to USD 712,000. The acquisition means that the net debt increased by SEK 5 m and consolidated goodwill increased by SEK 4 m.
On 18 January, Lindab acquired all the shares in the Finnish roof and wall cladding company Koto-Pelti Oy. The company has net sales of approximately SEK 30 m and has 6 employees. The acquisition means that the net debt increased by SEK 19 m and gave consolidated goodwill of SEK 17 m. Koto-Pelti Oy was consolidated on 1 January 2008.
The total depreciation/amortisation for the quarter was SEK 52 m (51), of which SEK 2 m (2) related to consolidated amortisation of surplus value on intangible assets. The depreciation/amortisation for the period January– September amounted to SEK 159 m (155), of which SEK 7 m (7) related to consolidated amortisation of surplus value on intangible assets.
Tax expenses for the quarter amounted to SEK 108 m (69), corresponding to a tax rate of 27 per cent (18). The reason for the lower tax rate in the previous year is that the UK operation activated a loss carry-forward with a tax effect of SEK 30 m. At the same time, the tax rate for the year has increased due to deferred earnings in countries with higher tax rates.
Tax expenses for the nine-month period were SEK 254 m (188), corresponding to a tax rate of 27 per cent (22).
There have been no changes to pledged assets and contingent liabilities during the quarter.
The parent company had no net sales during the quarter. The after-tax profi t for the period amounted to SEK –31 m (–20). For the period January–September, the corresponding fi gures were SEK –63 m (–51). During the second quarter, a dividend to the shareholders was paid, which reduced equity by SEK 413 m, and in the third quarter shares were repurchased up to a value of SEK 297 m.
In June 2008, the Finnish Competition Authority decided to conclude the cartel investigation that had been ongoing since 2003 without taking any action against any of the parties alledged to have been involved. As a result, this investigation has been removed from noteworthy risks and uncertainties. In the report from the fi rst quarter of 2008, Lindab informed about the conciliation reached in the case against BerlinerLuft. There have been no other changes to what was stated by Lindab in its Annual Report for 2007 regarding Noteworthy risks and uncertainties (pages 78–82).
The board has decided that the AGM will be held on 6 May 2009 in Båstad. Notice to attend the meeting will be sent out in due course.
The Annual General Meeting resolved in favour of the acquisition of own shares up to an amount of SEK 400 m or a maximum of 5 per cent of outstanding shares. Lindab's Board has decided to exercise the mandate authorised by the Annual General Meeting regarding the acquisition of own shares. The acquisitions have taken place on the OMX Nordic Exchange in Stockholm at a price within the share price interval at the time of registration. Lindab currently owns 2,937,750 shares, purchased for SEK 297 m. The total number of shares issued by Lindab remains at 78,707,820.
The incentive programme that was agreed by the Annual General Meeting has been implemented.
The programme has been fully subscribed and 784,000 warrants have been acquired by 85 senior executives and key employees within the Group, corresponding to 95 per cent of the total that was offered. Each warrant was priced at SEK 17.40, entitling the holder to one share in Lindab International for SEK 173.70 during the period from 01-06-2010 to 31-05-2011. The dilutive effect may be up to a maximum of 1 per cent of the share capital.
The warrants have been valued according to the Black-Scholes option pricing model. The programme also entitles the holder to a so called stay-bonus, i.e. that everyone who has acquired warrants receives 50 per cent of the purchase price as a bonus after tax, divided among three occasions during the period provided that they continue to be employed by the Lindab Group and remain in possession of the warrants.
The highest price paid for Lindab shares during the period January–September was SEK 163.00 on 1 April, and the lowest was SEK 80.00 on 30 September. The average daily trading volume of Lindab shares was 166,901 shares per day during 2008.
David Brodetsky assumed the role of President and CEO of the Lindab Group on 1 October 2008. Brodetsky was previously a member of the Group Management Team and the head of the Building Systems division. He succeeds Kjell Åkesson, who exercised his contractual right to retire in accordance with him reaching the age of 60 early next year.
In October, Lindab sold its holding in the ventilation company Øland in Denmark. The capital gain is estimated to amount to approx. SEK 18 m, which will be reported during the fourth quarter.
If the weakening of the Swedish krona that took place during September and October persists, this is expected to have a positive impact on both net sales and profi t. The effect on net debt is expected to be marginal since over 90 percent of borrowing is currently in SEK.
The Group applies International Financial Reporting Standards (IFRS).
This interim report has been prepared for the Group in accordance with IAS 34, Interim Financial Reporting. The Group and the parent company have applied the same accounting principles as in the previous year.
IFRIC 14–IAS 19, The Limit on a Defi ned Benefi t Asset, Minimum Funding Requirements and their Interaction, regarding how to determine the limit on the asset that an employer's balance sheet may contain in respect of its pension plan, has been applied since January 2008. This regulation has no direct consequences for Lindab.
Unless otherwise specifi ed in this Interim Report, all statements refer to the Group. Figures in parentheses indicate the outcome for the corresponding period in the previous year.
| SEK m | Jul-Sep 2008 |
Jul-Sep 2007 |
Jan-Sep 2008 |
Jan-Sep 2007 |
Jan-Dec 2007 |
|---|---|---|---|---|---|
| Nordic region | 960 | 925 | 2,899 | 2,661 | 3,680 |
| Western Europe | 740 | 702 | 2,070 | 1,985 | 2,637 |
| CEE/CIS | 932 | 784 | 2,188 | 1,876 | 2,616 |
| Other markets | 85 | 83 | 256 | 273 | 347 |
| Total | 2,717 | 2,494 | 7,413 | 6,795 | 9,280 |
| SEK m | Jul-Sep 2008 |
Jul-Sep 2007 |
Jan-Sep 2008 |
Jan-Sep 2007 |
Jan-Dec 2007 |
|---|---|---|---|---|---|
| Ventilation | 139 | 133 | 405 | 367 | 485 |
| Profile | 325 | 295 | 685 | 594 | 886 |
| Other operations | –6 | –4 | –29 | –22 | –62 |
| One-off items 2) | –13 | - | –13 | - | - |
| Total | 445 | 424 | 1,048 | 939 | 1,309 |
1) Attributable inter-company profits in stock are included in each Business Area from 1 October 2007. This was previously shown under Other operations. To make a comparison possible, the values for earlier periods have been adjusted accordingly.
2) The one-off items consist of costs arising due to the change of CEO up to and including March 2009.
| SEK m unless otherwise indicated | Jul-Sep 2008 |
Jul-Sep 2007 |
Jan-Sep 2008 |
Jan-Sep 2007 |
Jan-Dec 2007 |
Jan-Dec 2006 |
Jan-Dec 2005 |
|---|---|---|---|---|---|---|---|
| Operating profit, (EBITDA) 1) | 496 | 475 | 1,206 | 1,094 | 1,512 | 1,103 | 751 |
| Operating profit, (EBITA) 2) | 447 | 426 | 1,055 | 946 | 1,318 | 942 | 553 |
| Operating profit, (EBIT) 3) | 445 | 424 | 1,048 | 939 | 1,309 | 894 | 557 |
| Operating margin (EBITA), % 4) | 16.5 | 17.1 | 14.2 | 13.9 | 14.2 | 12.4 | 8.9 |
| Operating margin (EBIT), % 5) | 16.4 | 17.0 | 14.1 | 13.8 | 14.1 | 11.7 | 9.0 |
| Undiluted average number of shares | 77,502,249 | 78,707,820 | 78,303,030 | 78,707,820 | 78,707,820 | 90,701,895 120,000,000 | |
| Diluted average number of shares 6) | 77,502,249 | 78,707,820 | 78,303,030 | 78,707,820 | 78,707,820 | 93,061,875 122,940,000 | |
| Undiluted number of shares | 75,770,070 | 78,707,820 | 75,770,070 | 78,707,820 | 78,707,820 | 78,707,820 120,000,000 | |
| Diluted number of shares | 75,770,070 | 78,707,820 | 75,770,070 | 78,707,820 | 78,707,820 | 78,707,820 122,940,000 | |
| Undiluted earnings per share, SEK 7) | 3.79 | 4.08 | 8.65 | 8.31 | 11.45 | 6.45 | 2.93 |
| Diluted earnings per share, SEK 8) | 3.79 | 4.08 | 8.65 | 8.31 | 11.45 | 6.29 | 2.86 |
| Cash flow from operating activities | 127 | 264 | 453 | 300 | 875 | 778 | 730 |
| Net debt 9) | 2,863 | 2,679 | 2,863 | 2,679 | 2,238 | 2,602 | 1,846 |
| Net debt/eguity ratio, times 10) | 0.92 | 1.01 | 0.92 | 1.01 | 0.75 | 1.19 | 0.65 |
| Equity | 3,102 | 2,640 | 3,102 | 2,640 | 2,969 | 2,190 | 2,853 |
| Undiluted equity per share, SEK 11) | 40.94 | 33.54 | 40.94 | 33.54 | 37.72 | 27.82 | 23.77 |
| Diluted equity per share, SEK 12) | 40.94 | 33.54 | 40.94 | 33.54 | 37.72 | 27.82 | 23.21 |
| Equity/asset ratio, % 13) | 34.2 | 33.0 | 34.2 | 33.0 | 38.6 | 30.9 | 43.2 |
| Interest coverage ratio, times 14) | 9.2 | 10.8 | 8.0 | 8.7 | 8.6 | 8.4 | 6.4 |
| Return on equity, % 15) | 31.3 | 33.6 | 31.3 | 33.6 | 35.9 | 25.1 | 13.7 |
| Return on capital employed, % 16) | 25.0 | 22.2 | 25.0 | 22.2 | 24.5 | 18.2 | 11.9 |
| Return on operating capital, % 17) | 26.0 | 23.0 | 26.0 | 23.0 | 25.4 | 19.1 | 12.2 |
| Return on (total) assets, % 18) | 17.7 | 15.7 | 17.7 | 15.7 | 17.4 | 13.3 | 9.4 |
| Number of employees at close of period | 5,576 | 5,133 | 5,576 | 5,133 | 5,112 | 4,942 | 4,479 |
Definitions 1–18, see page 14
Net sales during the third quarter rose by 7 per cent to SEK 1,228 m (1,143). Acquisitions contributed to the net sales increase by 3 percentage points. Currency effects have reduced net sales by 1 percentage point. During the first nine months of the year, net sales amounted to SEK 3,643 m (3,363), which is an increase of 8 per cent. Adjusted for acquisitions and currency, the increase amounted to 7 per cent. Currency fluctuations negatively affected net sales by 1 percentage point.
The operating profit (EBIT) for the third quarter rose to SEK 139 m (133), which is an increase of 5 per cent compared with the previous year. The main reason for the improved profit is the improved profitability within the Comfort division, where the new product programme has contributed. The operating profit (EBIT) for the first nine months of the year amounted to SEK 405 m (367).
The Air Duct Systems division continued to show good profitability. Lindab's sales concept, Lindab Partnership, which simplifies the entire process from planning to installation continues to make headway. Product development is an area of priority and innovations which complement the Safe Click system, with various tools to make the installers' work more efficient, are at an advanced stage and will be launched onto the market in phases.
| Jul-Sep 2008 |
Jul-Sep 2007 |
Jan-Sep 2008 |
Jan-Sep 2007 |
Jan-Dec 2007 |
|
|---|---|---|---|---|---|
| Net sales, SEK m | 1,228 | 1,143 | 3,643 | 3,363 | 4,507 |
| Operating profi t (EBIT), SEK m 1) | 139 | 133 | 405 | 367 | 485 |
| Operating margin (EBIT), % 1) | 11.3 | 11.6 | 11.1 | 10.9 | 10.8 |
| Number of employees at close of period |
3,074 | 2,839 | 2,889 |
1) Attributable inter-company profits in stock are included in each Business Area from 1 October 2007. This was previously shown under Other operations. To make a comparison possible, the values for earlier periods have been adjusted accordingly.
Net sales rose by 10 per cent to SEK 1,472 m (1,336) for the third quarter. Acquisitions, primarily SIPOG which was consolidated on 1 September, have positively affected net sales by 4 percentage points. Development has continued to be strong for the Building Systems division with an increased focus on the CEE/CIS growth region. The order book within the division continues to be at a high level. The Building Components division is noticing weakened demand, primarily due to half of its sales being directed towards the residential market.
During the first nine months of the year, net sales amounted to SEK 3,722 m (3,388) an increase of 10 per cent. Adjusted for currency and structure, the increase was 7 per cent.
The introduction of the new RdBx click-function partition wall stud has been completed in Sweden and Norway with a very positive reception. During the fourth quarter, the launch will continue in Denmark and the Czech Republic, where production will also begin in the new year.
The operating profit (EBIT) for the period amounted to SEK 325 m (295), which is an increase of 10 per cent compared with the previous year. The operating margin (EBIT) for the quarter amounted to 22.1 per cent, which is unchanged compared with the same period the previous year. The improved profit can be explained by the continued strong growth within the Building Systems division. The acquisition of SIPOG has contributed marginally to the increased profit. Work to complete the new production unit for Building Systems in Russia continues, with production expected to start during the first quarter of 2009. Costs related to this establishment have affected the profit by SEK 10 m during the third quarter.
The operating profit (EBIT) for the nine-month period amounted to SEK 685 m (594), which is an increase of 15 per cent.
| Jul-Sep 2008 |
Jul-Sep 2007 |
Jan-Sep 2008 |
Jan-Sep 2007 |
Jan-Dec 2007 |
|
|---|---|---|---|---|---|
| Net sales. SEK m | 1,472 | 1,336 | 3,722 | 3,388 | 4,712 |
| Operating profi t (EBIT), SEK m 1) | 325 | 295 | 685 | 594 | 886 |
| Operating margin (EBIT), % 1) | 22.1 | 22.1 | 18.4 | 17.5 | 18.8 |
| Number of employees at close of period |
2,340 | 2,137 | 2,062 |
1) Attributable inter-company profits in stock are included in each Business Area from 1 October 2007. This was previously shown under Other operations. To make a comparison possible, the values for earlier periods have been adjusted accordingly.
| Group Amounts in SEK m |
Jul-Sep 2008 | Jul-Sep 2007 | Jan-Sep 2008 | Jan-Sep 2007 | Jan-Dec 2007 |
|---|---|---|---|---|---|
| Net sales | 2,717 | 2,494 | 7,413 | 6,795 | 9,280 |
| Cost of goods sold | –1,836 | –1,688 | –5,038 | –4,688 | –6,382 |
| Gross profi t | 881 | 806 | 2,375 | 2,107 | 2,898 |
| Other operating income | 33 | 20 | 60 | 56 | 79 |
| Selling expenses | –263 | –229 | –808 | –723 | –988 |
| Administrative expenses 1) | –156 | –134 | –460 | –409 | –549 |
| R & D costs | –15 | –11 | –42 | –35 | –47 |
| Other operating expenses | –35 | –28 | –77 | –57 | –84 |
| Operating profi t | 445 | 424 | 1,048 | 939 | 1,309 |
| Interest income | 6 | 6 | 16 | 13 | 20 |
| Interest expenses | –46 | –38 | –126 | –109 | –149 |
| Other financial income and expenses | –3 | –2 | –7 | –1 | –5 |
| Profi t after fi nancial items | 402 | 390 | 931 | 842 | 1,175 |
| Tax on profit for the period | –108 | –69 | –254 | –188 | –274 |
| Profi t for the period | 294 | 321 | 677 | 654 | 901 |
| Attributable to | |||||
| Parent company shareholders | 294 | 321 | 677 | 654 | 901 |
| Profi t for the period | 294 | 321 | 677 | 654 | 901 |
| Undiluted earnings per share, SEK | 3.79 | 4.08 | 8.65 | 8.31 | 11.45 |
| Diluted earnings per share, SEK | 3.79 | 4.08 | 8.65 | 8.31 | 11.45 |
| Undiluted average number of shares 2) | 77,502,249 | 78,707,820 | 78,303,030 | 78,707,820 | 78,707,820 |
| Diluted average number of shares 2) | 77,502,249 | 78,707,820 | 78,303,030 | 78,707,820 | 78,707,820 |
| Undiluted number of shares 2) | 75,770,070 | 78,707,820 | 75,770,070 | 78,707,820 | 78,707,820 |
| Diluted number of shares 2) | 75,770,070 | 78,707,820 | 75,770,070 | 78,707,820 | 78,707,820 |
1) Additional costs of SEK 13 m, arising up to the end of March 2009 due to the change of CEO, have affected administrative expenses during the third quarter.
2) When calculating the number of shares, the buy-back which has been ongoing during the third quarter of 2008 has been taken into consideration. The total number of repurchased shares amouns to 2,937,750.
| Jul-Sep 2008 | Jul-Sep 2007 | Jan-Sep 2008 | Jan-Sep 2007 | Jan-Dec 2007 | |
|---|---|---|---|---|---|
| Net sales, SEK m | 2,717 | 2,494 | 7,413 | 6,795 | 9,280 |
| Change, SEK m | 223 | 449 | 618 | 1,338 | 1,671 |
| Change, % | 9 | 22 | 9 | 25 | 22 |
| Of which | |||||
| Volumes and prices, % | 5 | 13 | 7 | 16 | 14 |
| Acquisitions/divestments, % | 3 | 9 | 2 | 9 | 8 |
| Currency effects, % | 1 | 0 | 0 | 0 | 0 |
| Group Amounts in SEK m |
30 Sep 2008 | 30 Sep 2007 | 31 Dec 2007 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Goodwill | 2,816 | 2,639 | 2,713 |
| Other intangible fixed assets | 68 | 60 | 66 |
| Tangible fixed assets | 1,567 | 1,372 | 1,425 |
| Financial fixed assets, interest bearing | 6 | 6 | 6 |
| Other financial fixed assets | 386 | 367 | 353 |
| Total fixed assets | 4,843 | 4,444 | 4,563 |
| Current assets | |||
| Stock | 1,790 | 1,465 | 1,278 |
| Accounts Receivable | 1,738 | 1,562 | 1,280 |
| Other current assets | 347 | 271 | 198 |
| Other receivables, interest bearing | 1 | 10 | 10 |
| Fixed assets held for sale | 15 | - | - |
| Cash and bank | 325 | 251 | 371 |
| Total current assets | 4,216 | 3,559 | 3,137 |
| TOTAL ASSETS | 9,059 | 8,003 | 7,700 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 3,102 | 2,640 | 2,969 |
| Long-term liabilities | |||
| Interest-bearing provisions | 106 | 107 | 109 |
| Interest-bearing liabilities | 2,870 | 2,641 | 2,398 |
| Provisions | 352 | 363 | 352 |
| Other long-term liabilities | 11 | 7 | 3 |
| Total long-term liabilities | 3,339 | 3,118 | 2,862 |
| Current liabilities | |||
| Interest-bearing liabilities | 219 | 198 | 118 |
| Provisions | 48 | 62 | 67 |
| Accounts payable | 1,165 | 1,009 | 780 |
| Other short-term liabilities | 1,186 | 976 | 904 |
| Total current liabilities | 2,618 | 2,245 | 1,869 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 9,059 | 8,003 | 7,700 |
| Group Amounts in SEK m |
Jul-Sep 2008 |
Jul-Sep 2007 |
Jan-Sep 2008 |
Jan-Sep 2007 |
Jan-Dec 2007 |
|---|---|---|---|---|---|
| Operating activities | |||||
| Operating profit | 445 | 424 | 1,048 | 939 | 1,309 |
| Reversal of depreciation/amortisation | 52 | 51 | 159 | 155 | 203 |
| Provisions, not affecting cash flow | 0 | –7 | –11 | –22 | –25 |
| Adjustment for other items not affecting cash flow | –45 | 13 | –15 | 10 | 20 |
| Total | 452 | 481 | 1,181 | 1,082 | 1,507 |
| Interest received | 7 | 7 | 16 | 13 | 21 |
| Interest paid | –46 | –35 | –128 | –101 | –148 |
| Tax paid | –87 | –123 | –327 | –287 | –288 |
| Cash fl ow from operating activities before | |||||
| change in working capital | 326 | 330 | 742 | 707 | 1,092 |
| Change in working capital | |||||
| Stock (increase – /decrease +) | –119 | –153 | –344 | –373 | –161 |
| Operating receivables (increase – /decrease +) | –72 | –58 | –442 | –370 | –24 |
| Operating liabilities (increase + /decrease –) | –8 | 145 | 497 | 336 | –32 |
| Total change in working capital | –199 | –66 | –289 | –407 | –217 |
| Cash fl ow from operating activities | 127 | 264 | 453 | 300 | 875 |
| Investing activities | |||||
| Acquisition of Group companies | –160 | - | –180 | –7 | –48 |
| Investments in intangible fixed assets | 1 | - | –6 | –4 | –13 |
| Investments in tangible fixed assets | –63 | –42 | –169 | –115 | –182 |
| Change in financial fixed assets | 2 | - | 2 | 2 | 1 |
| Sale/disposal of intangible fixed assets | - | - | - | 1 | - |
| Sale/disposal of tangible fixed assets | 0 | 5 | 4 | 16 | 17 |
| Cash fl ow from investing activities | –220 | –37 | –349 | –107 | –225 |
| Financing activities | |||||
| Increase +/decrease – in borrowing | 399 | –267 | 528 | 113 | –231 |
| Warrant premium payments | - | - | 14 | - | - |
| Dividend to shareholders | - | - | –413 | –256 | –256 |
| Share buy-back | –292 | - | –292 | - | - |
| Cash fl ow from fi nancing activities | 107 | –267 | –163 | –143 | –487 |
| Cash flow for the period | 14 | –40 | –59 | 50 | 163 |
| Cash and cash equivalents at start of the period | 0 | 295 | 371 | 199 | 199 |
| Effect of exchange rate changes on cash and cash equivalents | 8 | –4 | 13 | 2 | 9 |
| Cash and cash equivalents at end of the period | 22 | 251 | 325 | 251 | 371 |
| Group | |||||
|---|---|---|---|---|---|
| Amounts in SEK m | Jul-Sep 2008 | Jul-Sep 2007 | Jan-Sep 2008 | Jan-Sep 2007 | Jan-Dec 2007 |
| Opening balance | 2,995 | 2,355 | 2,969 | 2,190 | 2,190 |
| Dividend | - | - | –413 | –256 | –256 |
| Premium for management options | - | - | 14 | - | - |
| Buy-back of own shares | –297 | - | –297 | - | - |
| Translation differences | 110 | –36 | 152 | 52 | 134 |
| Profit for the period | 294 | 321 | 677 | 654 | 901 |
| Closing balance | 3,102 | 2,640 | 3,102 | 2,640 | 2,969 |
The Annual General Meeting on 7 May 2008 decided on a dividend to the shareholders. The dividend amounted to SEK 5.25 per share, corresponding to SEK 413,216,055.
The Annual General Meeting on 7 May 2008 resolved to issue 784,000 warrant options to senior executives. SEK 14 m has been received as payment regarding these.
| Parent Company | |||||
|---|---|---|---|---|---|
| Amounts in SEK m | Jul-Sep 2008 | Jul-Sep 2007 | Jan-Sep 2008 | Jan-Sep 2007 | Jan-Dec 2007 |
| Other operating income | - | - | - | 4 | 4 |
| Administration expenses | –16 | –4 | –25 | 12 | –18 |
| Other operating expenses | - | - | - | –1 | - |
| Operating profi t | –16 | –4 | –25 | –9 | –14 |
| Profit from subsidiaries | - | - | - | - | 1,003 |
| Interest income, external | - | 0 | 0 | 0 | 1 |
| Interest expenses, external | - | –8 | - | –28 | –39 |
| Interest expenses, internal | –26 | –15 | –61 | –34 | –52 |
| Profi t after fi nancial items | –42 | –27 | –86 | –71 | 899 |
| Tax on profit for the period | 11 | 7 | 23 | 20 | –57 |
| Profi t for the period | –31 | –20 | –63 | –51 | 842 |
| Parent Company Amounts in SEK m |
30 Sep 2008 | 30 Sep 2007 | 31 Dec 2007 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Shares in Group companies | 3,467 | 3,467 | 3,467 |
| Other long-term receivables | 22 | - | - |
| Total fixed assets | 3,489 | 3,467 | 3,467 |
| Current assets | |||
| Other receivables | 66 | 20 | 0 |
| Cash and bank | 2 | 0 | 0 |
| Total current assets | 68 | 20 | 0 |
| TOTAL ASSETS | 3,557 | 3,487 | 3,467 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 1,261 | 1,141 | 2,034 |
| Long-term liabilities | |||
| Interest-bearing liabilities | 2,277 | 692 | - |
| Liabilities to Group companies | - | 1,642 | 1,365 |
| Total long-term liabilities | 2,277 | 2,334 | 1,365 |
| Current liabilities | |||
| Interest-bearing liabilities | - | 5 | - |
| Non-interest-bearing liabilities | 19 | 7 | 68 |
| Total current liabilities | 19 | 12 | 68 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,557 | 3,487 | 3,467 |
The interim report has been submitted following approval by the Board of Directors.
Båstad 29 October 2008
David Brodetsky President and CEO
To the Board of Directors of Lindab International AB (publ) Corporate ID no. 556606-5446
We have conducted a review of the attached Interim Report for the period 1 January to 30 September 2008. The Board of Directors and the CEO are responsible for the preparation and presentation of this Interim Report in accordance with the Swedish Annual Accounts Act (1995:1554) and IAS 34. Our responsibility is to express an opinion about this Interim Report based on our review.
We have conducted our review in accordance with the Standard on Review Engagements SÖG 2410–Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and a much narrower scope than an audit conducted in accordance with the Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that this Interim Report has not, in all material respects, been prepared in accordance with IAS 34 and the Annual Accounts Act (1995:1554) for the Group, and in accordance with the Annual Accounts Act (1995:1554) for Lindab International AB.
Båstad 29 October 2008
Ernst & Young AB
Ingvar Ganestam Authorised Accountant
10) The net debt/equity ratio is expressed as the net debt in relation to shareholders' equity.
11) Shareholders' equity in relation to the undiluted number of shares at the end of the period.
*) Average capital is based on the quarterly values.
Lindab develops, manufactures, markets and distributes products and system solutions in sheet metal and steel for simplified construction and improved indoor climate.
The business is carried out within two business areas, Ventilation and Profile. 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 9,280 m in 2007, is established in 31 countries and has approximately 5,600 employees.
The main market is non-residential construction, which accounts for 80 per cent of sales, while residential accounts for 20 per cent of sales. During 2007, the Nordic market accounted for 40 per cent, the growth market Central and Eastern Europe for 28 per cent, Western Europe for 28 per cent and other markets for 4 per cent of total sales.
The Ventilation business area focuses on the ventilation sector with components and system solutions. It conducts operations within two divisions, Air Duct Systems and Comfort.
The Profile Business Area operates in the construction sector with building systems and building components. It conducts operations within two divisions Building Systems and Building Components.
The share is listed on the OMX Nordic Exchange, Stockholm List, Large Cap, under the ticker symbol LIAB. The principal shareholders are Ratos, Sjätte AP-fonden and Skandia Liv.
Manufacturing pre-engineered systems for the construction of steel buildings.
Producing a well-developed system of sheet steel components for roof drainage, roof and wall cladding, as well as steel profiles for walls, roof and beam constructions.
Producing complete, principally circular duct systems for ventilation.
Producing components that help to distribute and treat ventilating air.
Year End Report, Q4 11 February 2009 Annual Report 2008 March/April 2009 Annual General Meeting 6 May 2009 Interim Report January–March, Q1 6 May 2009 Interim Report January–June, Q2 17 July 2009 Interim Report January–September, Q3 28 October 2009
David Brodetsky, CEO Nils-Johan Andersson, CFO Phone +46 (0) 431-850 00 Phone +46 (0) 431-850 00
e-mail [email protected] 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 October 2008 at 07.40.
Lindab International AB 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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