Earnings Release • Nov 1, 2010
Earnings Release
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Our third quarter performance confirmed recent trends and expectations: we have seen positive signs in the Nordic residential markets; the non-residential markets have stabilised and we have been able to recover the increased cost of steel in our sales prices.
" I'd particularly like to highlight the Building Components business area's excellent performance in the quarter. Sweden stands out especially as the top performing market with September being the best ever month on record for Building Components in this market. The Building Systems business area also did very well to turn around from a loss in Q3, 2009 to good profitability in Q3, 2010 in large part due to improved sales in Eastern Europe stemming from orders booked in Q2. The Ventilation business area's markets remain weak but stable.
In overall terms, the new strategy is directing focus, attention and resources to the business segments where Lindab has clear strengths and where we see the most attractive markets. Geographically, we have good positions throughout the Nordic region, Western Europe and CEE. Of course we'll work to strengthen these but we also see main growth regions in Russia and CIS. We are now in the implementation phase with many activities in each business area focusing on the areas that will drive stronger growth and profitability in the coming years.
The market outlook is unchanged. We expect the residential segment to continue to confirm its recovery, particularly in the Nordic region. The non-residential market, on the other hand, remains stable overall. External indicators continue to point to the start of a recovery in this segment in the 2nd half of 2011.
Sales revenue during the third quarter amounted to SEK 1,881 m (1,825), which is an increase of 3 percent compared with the third quarter of 2009. Adjusted for currency effects and structural changes, the increase was 8 percent compared with the same period the previous year. Currency effects have negatively affected sales revenue by 6 percentage points 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 positively affected sales revenue by 1 percentage point.
During the quarter, sales in the Nordic region have risen by 6 percent. Adjusted for currency and structure the increase was 9 percent. Overall, the Swedish market is showing continued strong demand. Sales in Western Europe decreased by 1 percent during the quarter, when adjusted for currency effects sales increased by 7 percent. Sales in the CEE/CIS increased by 4 percent and after adjustment for currency the increase was 12 percent.
Demand in the various market segments differs. The residential market is showing the clearest improvement in demand, which is positively affecting sales within Building Components. The market for non-residential construction, which is the main market for Ventilation and Building Systems, is continuing to show weak demand overall.
Sales revenue for the period January–September amounted to SEK 4,830 m (5,417), which is a decrease of 11 percent compared with the corresponding period the previous year. Adjusted for currency and structure the decrease amounted to 6 percent, of which currency effects represent 5 percent.
Operating profit (EBIT) for the third quarter increased by 46 percent to SEK 212 m (145), excluding one-off items of SEK –7 m (–35). One-off items for the current year relate to the restructuring of the Ventilation business area's operations in the USA, announced in September. The restructuring focused mainly on the streamlining of production. The annual cost saving is calculated to be SEK 9 m. The previous year's costs relate to the closure of the Building Systems plant in Hungary and the restructuring work within the Ventilation business area.
Higher volumes are the main reason for the increased profit. The price of steel, which is Lindab's main raw material, rose considerably at the beginning of the third quarter. Lindab has imple-
mented price increases to compensate for this cost increase.
The operating margin (EBIT), excluding one-off items, for the period July–September amounted to 11.3 percent (7.9).
The pre-tax result for the period amounted to SEK 159 m (76). The after-tax result increased to SEK 114 m (37). Earnings per share amounted to SEK 1.51 (0.49).
After the third quarter, the rolling twelve-month operating profit (EBIT), excluding one-off items, amounted to SEK 306 m (485). This corresponds to a margin of 4.8 percent (6.2).
Operating profit (EBIT) for the period January– September, excluding one-off items, amounted to SEK 272 m. The previous year's profit was SEK 267 m. Including one-off items, the profit amounted to SEK 319 m (220). One-off items for the year total SEK 47 m, with SEK 26 m comprising costs for restructuring measures and a capital gain of SEK 73 m from the property transaction completed in the first quarter in Luxembourg. During the same period in 2009, the profit was affected by one-off costs totalling SEK 47 m net.
The previously announced cost-reduction programmes, which are now fully implemented, have altogether decreased costs by SEK 560 m annually compared with the situation in 2008. During 2010, the programme has lowered costs by SEK 100 m compared with the previous year.
The operating margin (EBIT) for the same period, excluding one-off items, amounted to 5.6 percent (4.9).
The pre-tax result for the first nine months of the year amounted to SEK 191 m (121). The after-tax result amounted to SEK 113 m (29).
Earnings per share amounted to SEK 1.50 (0.39).
Dilutive effects have not been taken into account for the share warrants in the incentive programmes since the average share price for both the quarter
and the year is lower than the conversion rates in each of the programmes.
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. During the third quarter, however, the value of the stock has increased owing to higher steel prices.
Net investments in fixed assets for the quarter amounted to SEK 43 m (21). Investment in the new Building Systems plant in Yaroslavl, Russia, was completed during the quarter with the acquisition of land for SEK 12 m. Operations in Folke Perforering were divested in the previous year for SEK 15 m.
Investments for the period January–September, excluding acquisitions, amounted to SEK 81 m (134). Acquisition of Group companies consisted of shares in IVK-Tuote Oy, Finland,
Operating profit (EBIT), SEK m*)
quarter Oct-Dec Jan-March April-June July-Sept rolling *) Adjusted for one-off items.
which was acquired for SEK 43 m. Because the acquisition was paid for using treasury shares, the cash flow from investing activities has only been affected positively by the company's SEK 4 m in cash and cash equivalents. Sales of fixed assets amounted to SEK 303 m (18), with the largest item comprising the sale of the Building Systems plant in Luxembourg, amounting to SEK 285 m. A leaseback agreement has been signed with the buyer.
Cash flow from operating activities amounted to SEK 172 m for the third quarter compared with SEK 329 m for the same period the previous year. The difference of SEK 157 m consists primarily of increased working capital tied up of SEK 268 m. A higher operating profit of SEK 95 m offsets this to some extent.
Stock has increased by SEK 141 m during the quarter, largely due to substantial steel price increases. In the previous year, stock decreased by SEK 171 m during the corresponding period.
The cash flow from investing activities amounted to SEK –43 m (–7). Adjusted for acquisitions and divestments this was SEK –43 m (–21). Gross fixed assets were acquired for SEK 43 m (27) and divested for SEK 0 m (6).
For the first nine months of the year, cash flow from operating activities amounted to SEK 67 m (474). The difference compared to 2009 amounts to SEK 407 m, which is explained on the one hand by higher working capital tied up of SEK 565 m, which has a negative effect, and on the other hand a higher operating profit of SEK 99 m, which has a positive effect.
Working capital increased by SEK 208 m during the year, as opposed to the previous year's decrease of SEK 357 m, owing to higher capital tied up in stock and operating receivables, which is partly offset by increased accounts payable. In the previous year the stock was reduced substantially, positively affecting the cash flow.
The cash flow from investing activities amounted to SEK 226 m (–115). When adjusted for acquisitions and divestments this was SEK 222 m (–116). During the year, shares in IVK-Tuote Oy, Finland, have been acquired for SEK 43 m. Because the payment was made 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 with a sale price of SEK 285 m.
Financing activities for the period January–September resulted in a net cash flow of SEK –307 m (–351) consisting of changes in borrowing of SEK –313 m (–145) and the payment of SEK 6 m (-) in premiums for warrants in the third incentive programme.
The net debt was SEK 2,104 m (2,600) at 30 September 2010. The strong Swedish krona has decreased the net debt by around SEK 100 m since the start of the year. The equity/assets ratio
quarter Oct-Dec Jan-March April-June July-Sept rolling
amounted to 40 percent (38) and the net debtequity ratio was 0.7 (0.9).
Net financial income during the quarter was SEK –46 m (–34). For the first nine months of the year, net financial income amounted to SEK –128 m (–99). The increase is due to increased interest expenses resulting from raised interest rates.
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 (2,152). The decrease is mainly due to the credit limit being reduced from SEK 4.5 bn to SEK 3.5 bn when the agreement was renegotiated during the fourth quarter of 2009.
The Finnish company IVK-Tuote Oy was acquired at the end of March 2010. 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 had 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 42 m (56), of which SEK 1 m (3) related to consolidated amortisation of surplus value on intangible assets. For the period January–September, depreciation amounted to SEK 134 m (168), of which SEK 6 m (8) related to consolidated amortisation of surplus value on intangible assets.
The lower depreciation is due mainly to restructuring measures and Lindab had a lower investment pace in recent years. The sale of the property in Luxembourg has also affected the depreciation costs. For certain surplus value on intangible assets, the depreciation has been completed during the quarter.
Tax expenses for the quarter amounted to SEK 45 m (39). The pre-tax result amounted to SEK 159 m (76), giving an effective tax rate of 28 percent (51). The Group's average tax rate for the quarter is calculated at 23 percent (39), through a weighting that is based on subsidiaries' pre-tax result (EBT) multiplied by the local tax rate.
A reconciliation of the effective tax rate for the quarter using the average tax rate shows the following: The difference amounts to 5 percentage points (12) and notably comprises various fiscal adjustments to reported profit, such as non-deductible expenses of 3 percentage points (5), tax attributable to previous years 0 percentage points (–7), as well as corrections to loss carry forwards 0 percentage points (13) and other items of 2 percentage points (1) net. The largest single item in the previous year was the reversal of a portion of deferred tax on the deficit in Germany of SEK 10 m.
Tax expenses for the first nine months of the year were SEK 78 m (92). The pre-tax profit amounted to SEK 191 m (121), giving an effective tax rate of 41 percent (76). The average tax rate for the Group has been calculated at 26 percent (35).
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 –19 m (101). For the period January– September, the corresponding result was SEK –52 m (78).
There have been no changes to what was stated by Lindab in its Annual Report for 2009 regarding Noteworthy risks and uncertainties (pages 93–97).
The board has decided that the Annual General Meeting will be held on 11 May 2011. Notice to attend the meeting will be sent out in due course.
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 same occasion was used to communicate the revised financial targets. The annual organic growth target has been raised from 6 percent to 8 percent, in light of the updated strategy and the assumptions regarding market growth. The operating margin target remains at 14 percent and this is judged to be realistic in good economic conditions. The target for the net debt equity 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 during 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 number of employees at the end of the quarter, converted to full-time employment, totalled 4,485 (4,714) which is an increase of 50 people since the start of the year. Adjusted for the acquisition of IVK-Tuote Oy, the number of employees decreased by 6.
The highest price paid for Lindab shares during the period January–September was SEK 99.50 on 30 September, and the lowest was SEK 61.25 on 26 February. The closing price on 30 September 2010 was SEK 97.65. The average daily trading volume of Lindab shares was 140,131 shares per day (137,204).
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 paid using 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 biggest 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 10.6 percent (11.8), Robur/Swedbank with 8.5 percent (7.3) and Lannebo Fonder with 4.6 percent (4.2). The holdings of the ten largest shareholders constitute 73.5 percent of the shares (75.1), 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.
| July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 1,881 | 1,825 | 4,830 | 5,417 | 7,019 |
| Change, SEK m | 56 | –892 | –587 | –1,996 | –2,821 |
| Change, % | 3 | –33 | –11 | –27 | –29 |
| Of which | |||||
| Volumes and prices, % | 8 | –37 | –6 | –34 | –33 |
| Acquisitions/divestments, % | 1 | 1 | 0 | 2 | 1 |
| Currency effects, % | –6 | 3 | –5 | 5 | 3 |
| SEK m | July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 |
|---|---|---|---|---|---|
| Nordic region | 809 | 764 | 2,146 | 2,273 | 2,986 |
| Western Europe | 538 | 544 | 1,464 | 1,750 | 2,220 |
| CEE/CIS | 457 | 439 | 1,004 | 1,131 | 1,487 |
| Other markets | 77 | 78 | 216 | 263 | 326 |
| Total | 1,881 | 1,825 | 4,830 | 5,417 | 7,019 |
| SEK m | July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 |
|---|---|---|---|---|---|
| Ventilation | 924 | 953 | 2,665 | 3,017 | 3,878 |
| Building Components | 695 | 650 | 1,580 | 1,601 | 2,144 |
| Building Systems | 262 | 219 | 585 | 780 | 978 |
| Other operations | - | 3 | - | 19 | 19 |
| Total | 1,881 | 1,825 | 4,830 | 5,417 | 7,019 |
| Gross internal sales all segments | 10 | 9 | 21 | 21 | 28 |
| SEK m | July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 |
|---|---|---|---|---|---|
| Ventilation | 70 | 76 | 157 | 173 | 190 |
| Building Components | 123 | 93 | 159 | 91 | 135 |
| Building Systems | 28 | –12 | –9 | 25 | 7 |
| Other operations | –9 | –12 | –35 | –22 | –31 |
| One-off items1) | –7 | –35 | 47 | –47 | –47 |
| Total (EBIT) | 205 | 110 | 319 | 220 | 254 |
| Net financial income | –46 | –34 | –128 | –99 | –135 |
| Result before tax (EBT) | 159 | 76 | 191 | 121 | 119 |
1) Operating profit (EBIT) for the third quarter of 2010 has been adjusted by SEK 7 m, relating to the closure of Ventilation's unit in Texas, USA.
For the nine month period of 2010, there is an additional preliminary estimated capital gain of SEK 73 m on the sale of property in Luxembourg plus restructuring costs.
The operating profit (EBIT) for the third quarter of 2009 has been adjusted by SEK –45 m relating to the cost reduction programme plus a return of SEK 10 m from the sale of Folke Perforering.
For the nine month period in 2009 there is an additional one-off cost of SEK 12 m relating to the closure of Lindab Plåt in Edsvära, Sweden.
Sales revenue during the third quarter fell by 3 percent to SEK 924 m (953). Currency effects have reduced sales by 6 percentage points. The acquisition of IVK-Tuote Oy has positively affected sales by 2 percentage points. Price increases have positively affected sales revenue.
Demand within non-residential construction has been weak in most markets during the year, particularly in new construction that represents more than half of sales. The main markets for the business area, Nordic and Western Europe, showed a stabilisation in demand, albeit with wide variations between individual countries. In the Nordic region, the Swedish together with the Finnish market is showing a positive trend in demand. In Western Europe, the main markets UK and Germany are showing unchanged demand.
The Finnish company acquired in the first quarter, IVK-Tuote Oy, has performed positively and the integration work is proceeding to plan.
Sales for the first nine months of the year decreased by 12 percent to SEK 2,665 m (3,017). Adjusted for currency and structure the decrease was 7 percent.
The operating profit (EBIT) for the third quarter, excluding one-off items, amounted to SEK 70 m (76), which is a decrease of 8 percent compared with the previous year. The operating margin (EBIT) amounted to 7.6 percent (8.0). The reduced margin is explained by certain price pressures, but this is partially offset by lower fixed costs. One-off items amount to SEK –7 m and relate to a restructuring and streamlining of production in operations in the USA. The unit in Texas is being closed down and all production will take place in Portsmouth, Virginia. The annual cost saving is calculated at SEK 9 m and will take effect beginning in the fourth quarter of 2010. A total of 20 people are affected by the closure.
Operating profit (EBIT) for the first nine months of the year, excluding one-off items, amounted to SEK 157 m (173), which is a decrease of 9 percent.
In order to focus operations and improve profitability, Lindab has signed a lease contract for a new factory directly adjacent to Lindab's existing major production unit in Karlovarska, outside Prague in the Czech Republic. The new factory, measuring 10,000 m2, provides space for further streamlining and centralisation of mainly indoor climate products (Comfort). The new factory is expected to be in operation during the second quarter of 2011.
| July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 924 | 953 | 2,665 | 3,017 | 3,878 |
| Operating profit (EBIT), SEK m1) | 70 | 76 | 157 | 173 | 190 |
| Operating margin (EBIT), %1) | 7.6 | 8.0 | 5.9 | 5.7 | 4.9 |
| No. of employees at close of period | 2,519 | 2,659 | 2,519 | 2,659 | 2,555 |
1) Operating profit (EBIT) for the third quarter of 2010 has been adjusted by SEK 7 m, relating to the closure of Ventilation's unit in Texas, USA. For the nine month period of 2010, there are additional restructuring costs of SEK 11 m.
The operating profit (EBIT) for the third quarter and full year 2009 has been adjusted for one-off costs of SEK 19 m relating to the cost reduction programme.
Sales revenue rose by 7 percent to SEK 695 m (650) during the third quarter. Adjusted for currency fluctuations, sales increased by 13 percent during the quarter. Price increases to compensate for higher steel prices have positively affected sales revenue.
Building Components has seen good demand during the quarter, driven primarily by the Swedish market, which had its best ever sales month in September. All regions have shown organic growth during the quarter.
Sales for the first nine months of the year decreased by 1 percent to SEK 1,580 m (1,601). Adjusted for currency and structure sales increased by 3 percent.
Operating profit (EBIT) for the quarter, excluding one-off items, amounted to SEK 123 m (93), which is an improvement of 32 percent compared with the previous year. The operating margin (EBIT) amounted to 17.7 percent (14.3) for the quarter. Higher volumes are the main reason for the increased profit.
Operating profit (EBIT) for the first nine months of the year, excluding one-off items, amounted to SEK 159 m (91).
Activities in line with the updated strategy are being implemented at a high pace. The Rainline roof drainage system is being given great priority and more than 40 Rainline Centres are now open in the CEE/CIS aimed at increasing the market penetration within the residential segment.
| July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 695 | 650 | 1,580 | 1,601 | 2,144 |
| Operating profit (EBIT), SEK m1) | 123 | 93 | 159 | 91 | 135 |
| Operating margin (EBIT), %1) | 17.7 | 14.3 | 10.1 | 5.7 | 6.3 |
| No. of employees at close of period | 1,090 | 1,070 | 1,090 | 1,070 | 1,003 |
1) Operating profit (EBIT) for the nine month period in 2009 has been adjusted by SEK 12 m in one-off costs relating to Lindab Plåt in Edsvära, Sweden, which was part of the cost reduction programme.
For the full year 2009, there are additional restructuring costs of SEK 12 m.
Sales revenue rose by 20 percent to SEK 262 m (219) during the third quarter. Currency effects have negatively affected sales by 9 percent during the quarter. Deliveries relating to the strong order intake in the second quarter have begun. Price increases have been implemented to compensate for higher steel prices.
The main market, new construction of industrial buildings, remains weak in general. However, individual markets such as Russia and Poland show continued improvements.
Sales revenue for the first nine months of the year decreased by 25 percent to SEK 585 m (780). Adjusted for currency and structure the decrease was 19 percent.
Operating profit (EBIT) for the period, excluding one-off items, amounted to SEK 28 m (–12). The operating margin (EBIT) amounted to 10.7 percent (–5.5) for the quarter. One-off items for 2009 amounted to SEK 26 m, and refer to costs relating to the closure of the production unit in Hungary. Higher volumes and improved margins are the main reasons for the increased profit.
Operating profit (EBIT) for the first nine months of the year, excluding one-off items, amounted to SEK –9 m (25).
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.
In line with the updated strategy, certain labour intensive production has been moved from Luxembourg to the Czech Republic. Capacity increases and efficiency measures have also been implemented in the Russian production plant in Yaroslavl. The investment was completed during the quarter with the acquisition of land.
| July-Sept 2010 | July-Sept 2009 | Jan-Sept 2010 | Jan-Sept 2009 | Jan-Dec 2009 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 262 | 219 | 585 | 780 | 978 |
| Operating profit (EBIT), SEK m1) | 28 | –12 | –9 | 25 | 7 |
| Operating margin (EBIT), %1) | 10.7 | –5.5 | –1.5 | 3.2 | 0.7 |
| No. of employees at close of period | 773 | 854 | 773 | 854 | 756 |
1) Operating profit (EBIT) for the nine month period in 2010 has been adjusted by SEK 65 m, primarily relating to the preliminary estimated capital gain of SEK 73 m on the sale of property in Luxembourg plus costs for the closure of the Building Systems plant in Hungary.
In the previous year, a provision of SEK 26 m was made during the third quarter for restructuring costs. For the full year, the provision decreased to SEK 14 m.
| Rolling 12 M Oct 2009– |
||||||
|---|---|---|---|---|---|---|
| Amounts in SEK m | July-Sept 2010 July-Sept 2009 Jan-Sept 2010 Jan-Sept 2009 | Sept 2010 | Jan-Dec 2009 | |||
| Sales revenue | 1,881 | 1,825 | 4,830 | 5,417 | 6,432 | 7,019 |
| Cost of goods sold | –1,300 | –1,296 | –3,441 | –3,941 | –4,637 | –5,137 |
| Gross profit | 581 | 529 | 1,389 | 1,476 | 1,795 | 1,882 |
| Other operating income | 8 | 31 | 147 | 118 | 174 | 145 |
| Selling expenses | –222 | –233 | –690 | –765 | –961 | –1,036 |
| Administrative expenses | –132 | –131 | –395 | –413 | –521 | –539 |
| R & D costs | –9 | –13 | –27 | –39 | –35 | –47 |
| Other operating expenses | –21 | –73 | –105 | –157 | –99 | –151 |
| Total operating expenses | –376 | –419 | –1,070 | –1,256 | –1,442 | –1,628 |
| Operating profit (EBIT)1) | 205 | 110 | 319 | 220 | 353 | 254 |
| Interest income | 2 | 3 | 5 | 9 | 9 | 13 |
| Interest expenses | –46 | –33 | –133 | –101 | –174 | –142 |
| Other financial income and expenses | –2 | –4 | 0 | –7 | 1 | –6 |
| Net financial income | –46 | –34 | –128 | –99 | –164 | –135 |
| Result before tax (EBT) | 159 | 76 | 191 | 121 | 189 | 119 |
| Tax | –45 | –39 | –78 | –92 | –71 | –85 |
| After tax result | 114 | 37 | 113 | 29 | 118 | 34 |
| –thereof attributable to parent company | ||||||
| shareholders | 114 | 37 | 113 | 29 | 118 | 34 |
| Other comprehensive income | ||||||
| Cash flow hedges | 3 | - | –12 | - | –22 | –11 |
| Translation differences, foreign operations | –103 | –187 | –274 | –200 | –243 | –168 |
| Income tax attributable to cash flow hedges | –1 | - | 3 | - | 6 | 3 |
| Other comprehensive income | –101 | –187 | –283 | –200 | –259 | –176 |
| Total comprehensive income | 13 | –150 | –170 | –171 | –141 | –142 |
| –thereof attributable to parent company | ||||||
| shareholders | 13 | –150 | –170 | –171 | –141 | –142 |
| Earnings per share, SEK | ||||||
| Undiluted | 1.51 | 0.49 | 1.50 | 0.39 | 1.56 | 0.45 |
| Diluted | 1.51 | 0.49 | 1.50 | 0.39 | 1.56 | 0.45 |
| Dilutive effects have not been taken into account for share warrants in incentive programmes since the average 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: | –7 | –35 | 47 | –47 | 47 | –47 |
| Operating profit (EBIT) excl. one-off items | 212 | 145 | 272 | 267 | 306 | 301 |
Operating profit (EBIT) for the third quarter of 2010 has been adjusted by SEK 7 m, relating to the closure of Ventilation's unit in Texas, USA.
For the nine month period of 2010, there is an additional preliminary estimated capital gain of SEK 73 m on the sale of property in Luxembourg plus restructuring costs.
The operating profit (EBIT) for the third quarter of 2009 has been adjusted by SEK –45 m relating to the cost reduction programme plus a return of SEK 10 m from the sale of Folke Perforering.
For the nine month period in 2009 there is an additional one-off cost of SEK 12 m relating to the closure of Lindab Plåt in Edsvära, Sweden.
| Amounts in SEK m | 30 Sept 2010 | 30 Sept 2009 | 31 Dec 2009 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Goodwill | 2,722 | 2,861 | 2,922 |
| Other intangible fixed assets | 49 | 61 | 61 |
| Tangible fixed assets1) | 1,166 | 1,559 | 1,336 |
| Financial fixed assets, interest bearing | 25 | 7 | 25 |
| Other financial fixed assets | 389 | 362 | 454 |
| Total fixed assets | 4,351 | 4,850 | 4,798 |
| Current assets | |||
| Stock | 1,200 | 1,001 | 896 |
| Accounts receivable | 1,212 | 1,263 | 976 |
| Other current assets | 265 | 345 | 304 |
| Other receivables, interest bearing | 35 | 56 | 3 |
| Non-current assets held for sale1) | - | - | 217 |
| Cash and bank | 212 | 266 | 248 |
| Total current assets | 2,924 | 2,931 | 2,644 |
| TOTAL ASSETS | 7,275 | 7,781 | 7,442 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,882 | 2,969 | 3,003 |
| Long-term liabilities | |||
| Interest-bearing provisions | 124 | 108 | 133 |
| Interest-bearing liabilities | 2,083 | 2,740 | 2,384 |
| Provisions | 355 | 353 | 444 |
| Other long-term liabilities | 12 | 15 | 15 |
| Total long-term liabilities | 2,574 | 3,216 | 2,976 |
| Current liabilities | |||
| Interest-bearing liabilities | 170 | 81 | 181 |
| Provisions | 48 | 103 | 74 |
| Accounts payable | 762 | 595 | 550 |
| Other short-term liabilities | 839 | 817 | 658 |
| Total current liabilities | 1,819 | 1,596 | 1,463 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 7,275 | 7,781 | 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 | July-Sept 2010 July-Sept 2009 Jan-Sept 2010 Jan-Sept 2009 | Rolling 12 M Oct 2009– Sept 2010 |
Jan-Dec 2009 | |||
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Operating profit | 205 | 110 | 319 | 220 | 353 | 254 |
| Reversal of depreciation/amortisation | 42 | 56 | 134 | 168 | 191 | 225 |
| Reversal of capital gains (–) / losses (+) | ||||||
| reported in operating profit | 15 | 0 | –75 | 0 | –72 | 3 |
| Provisions, not affecting cash flow | –7 | 14 | –29 | –49 | –47 | –67 |
| Adjustment for other items not affecting cash flow |
69 | 21 | 113 | 13 | 94 | –6 |
| Total | 324 | 201 | 462 | 352 | 519 | 409 |
| Interest received | 2 | 6 | 8 | 9 | 10 | 11 |
| Interest paid | –49 | –20 | –125 | –112 | –173 | –160 |
| Tax paid | –13 | –34 | –70 | –132 | –62 | –124 |
| Cash flow from operating activities before | ||||||
| change in working capital | 264 | 153 | 275 | 117 | 294 | 136 |
| Change in working capital | ||||||
| Stock (increase – /decrease +) | –141 | 171 | –375 | 617 | –270 | 722 |
| Operating receivables (increase – /decrease +) | 28 | 8 | –301 | 4 | –3 | 302 |
| Operating liabilities (increase + /decrease –) | 21 | –3 | 468 | –264 | 291 | –441 |
| Total change in working capital | –92 | 176 | –208 | 357 | 18 | 583 |
| Cash flow from operating activities | 172 | 329 | 67 | 474 | 312 | 719 |
| Investing activities | ||||||
| Acquisition of Group companies | 0 | –1 | 4 | –14 | –27 | –45 |
| Divestment of operations | - | 15 | - | 15 | - | 15 |
| Investments in intangible fixed assets | –3 | –4 | –8 | –13 | –15 | –20 |
| Investments in tangible fixed assets | –40 | –23 | –73 | –121 | –114 | –162 |
| Change in financial fixed assets Sale/disposal of intangible fixed assets |
0 0 |
0 2 |
0 0 |
0 2 |
1 0 |
1 2 |
| Sale/disposal of tangible fixed assets | 0 | 4 | 303 | 16 | 308 | 21 |
| Cash flow from investing activities | –43 | –7 | 226 | –115 | 153 | –188 |
| Financing activities | ||||||
| Increase +/decrease – in borrowing | –193 | –363 | –313 | –145 | –508 | –340 |
| Warrant premium payments | - | - | 6 | - | 11 | 5 |
| Dividend to shareholders | - | - | - | –206 | - | –206 |
| Cash flow from financing activities | –193 | –363 | –307 | –351 | –497 | –541 |
| Cash flow for the period | –64 | –41 | –14 | 8 | –32 | –10 |
| Cash and cash equivalents at start of the period | 281 | 307 | 248 | 258 | 266 | 258 |
| Effect of exchange rate changes on cash and | ||||||
| cash equivalents | –15 | 0 | –22 | 0 | –22 | 0 |
| Cash and cash equivalents at end of the period | 212 | 266 | 212 | 266 | 212 | 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 | –9 | –274 | 113 | –170 | ||
| Premiums for warrants2) | 6 | 6 | ||||
| Transfer of treasury shares in company acquisition | 43 | 43 | ||||
| Closing balance, 30 September 2010 | 79 | 2,250 | –17 | 98 | 472 | 2,882 |
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 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 (3,935,391) treasury shares, corresponding to 4.3 percent (5.0) 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 General Meeting held on 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.
| Amounts in SEK m | July-Sept 2010 July-Sept 2009 Jan-Sept 2010 Jan-Sept 2009 | Jan-Dec 2009 | |||
|---|---|---|---|---|---|
| Administrative expenses | –2 | –5 | –6 | –13 | –15 |
| Other operating expenses | - | 0 | - | –1 | - |
| Operating profit | –2 | –5 | –6 | –14 | –15 |
| Profit from subsidiaries | - | 107 | - | 107 | 186 |
| Interest expenses, internal | –23 | –3 | –64 | –24 | –40 |
| Result before tax | –25 | 99 | –70 | 69 | 131 |
| Tax on profit for the period | 6 | 2 | 18 | 9 | –4 |
| After tax result | –19 | 101 | –52 | 78 | 127 |
| Amounts in SEK m | 30 Sept 2010 | 30 Sept 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 | 20 | 9 | 2 |
| Total fixed assets | 3,498 | 3,476 | 3,480 |
| Current assets | |||
| Other receivables | 10 | 24 | 18 |
| Cash and bank | 0 | 0 | 0 |
| Total current assets | 10 | 24 | 18 |
| TOTAL ASSETS | 3,508 | 3,500 | 3,498 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 1,421 | 1,381 | 1,430 |
| Long-term liabilities | |||
| Interest-bearing provisions | 11 | - | 11 |
| Liabilities to Group companies | 2,073 | 2,111 | 2,051 |
| Total long-term liabilities | 2,084 | 2,111 | 2,062 |
| Current liabilities | |||
| Non-interest-bearing liabilities | 3 | 8 | 6 |
| Total current liabilities | 3 | 8 | 6 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,508 | 3,500 | 3,498 |
| Quarterly Periods | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2008 | ||||||||
| July | April | Jan | Oct | July | April Jan |
Oct | July | April | Jan | |
| SEK m unless otherwise specified | Sept | June | March | Dec | Sept | June March |
Dec | Sept | June | March |
| Sales revenue | 1,881 | 1,715 | 1,234 | 1,602 | 1,825 | 1,821 1,771 |
2,427 | 2,717 | 2,567 | 2,129 |
| Operating profit, (EBITDA)1) | 247 | 134 | 72 | 92 | 165 | 142 80 |
182 | 496 | 448 | 262 |
| Operating profit, (EBITA)2) | 206 | 92 | 27 | 37 | 113 | 88 27 |
117 | 447 | 399 | 209 |
| Depreciation/amortisation | 42 | 45 | 47 | 57 | 56 | 56 56 |
66 | 52 | 52 | 55 |
| Operating profit, (EBIT)3) | 205 | 89 | 25 | 34 | 110 | 85 25 |
115 | 445 | 396 | 207 |
| Operating profit, (EBIT), excluding one-off items | 212 | 110 | –50 | 34 | 145 | 97 25 |
218 | 458 | 396 | 207 |
| After tax result | 114 | 27 | –28 | 5 | 37 | 13 –21 |
46 | 294 | 266 | 117 |
| Total comprehensive income | 13 | –26 | –157 | 29 | –150 | 53 –74 |
295 | 404 | 345 | 80 |
| Operating margin (EBITA), %4) | 11.0 | 5.4 | 2.2 | 2.3 | 6.2 | 4.8 1.5 |
4.8 | 16.5 | 15.5 | 9.8 |
| Operating margin (EBIT), %5) | 10.9 | 5.2 | 2.0 | 2.1 | 6.0 | 4.7 1.4 |
4.7 | 16.4 | 15.4 | 9.7 |
| Operating margin (EBIT), excluding one-off items, % | 11.3 | 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 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 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 75,332 | 74,772 74,772 74,772 74,772 | 74,772 75,770 78,708 78,708 | |||||||
| Diluted number of shares, (000's)6) | 75,332 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) | 1.51 | 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) | 1.51 | 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 | 172 | 67 | –172 | 245 | 329 | 332 –187 |
220 | 127 | 317 | 17 |
| Cash flow from operating activities per share, SEK9) | 2.28 | 0.89 | –2.30 | 3.28 | 4.40 | 4.44 –2.50 |
2.92 | 1.64 | 4.03 | 0.22 |
| Total assets | 7,275 | 7,482 | 7,206 | 7,442 | 7,781 | 8,226 8,492 |
8,625 | 9,059 | 8,320 | 7,652 |
| Net debt10) | 2,104 | 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) | 0.7 | 0.8 | 0.8 | 0.8 | 0.9 | 0.9 0.9 |
0.8 | 0.9 | 0.8 | 0.7 |
| Equity | 2,882 | 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) | ||||||||||
| 38.26 | 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) | 38.26 | 38.08 | 38.35 | 40.16 | 39.71 | 41.71 43.76 |
44.75 | 40.94 | 38.05 | 38.74 |
| Equity/asset ratio, %14) | 39.6 | 38.3 | 40.1 | 40.4 | 38.2 | 37.9 38.5 |
38.8 | 34.2 | 36.0 | 39.8 |
| Return on equity, %15) | 4.0 | 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) | 6.6 | 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) | 6.7 | 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, % | 5.8 | 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) | 4.9 | 3.5 | 3.4 | 3.3 | 4.0 | 8.0 11.6 |
14.3 | 17.7 | 18.0 | 17.5 |
| Interest coverage ratio, times19) | 4.4 | 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 period 20) | 4,485 | 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-Sept | Full-year Periods | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 July Sept |
2006 July Sept |
2005 July Sept |
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | 2007 | 2006 | 2005 |
| 2,494 | 2,045 | 1,685 | 4,830 | 5,417 | 7,413 | 6,795 | 5,457 | 4,360 | 7,019 | 9,840 | 9,280 | 7,609 | 6,214 |
| 475 | 414 | 286 | 453 | 387 | 1,206 | 1,094 | 833 | 530 | 479 | 1,388 | 1,512 | 1,103 | 751 |
| 426 | 365 | 236 | 325 | 228 | 1,055 | 946 | 685 | 386 | 265 | 1,172 | 1,318 | 942* | 553* |
| 51 | 53 | 50 | 134 | 168 | 159 | 155 | 156 | 144 | 225 | 225 | 203 | 209 | 194 |
| 424 | 363 | 236 | 319 | 220 | 1,048 | 939 | 678 | 386 | 254 | 1,163 | 1,309 | 894 | 557 |
| 424 | 338 | 226 | 272 | 267 | 1,061 | 939 | 653 | 376 | 301 | 1,279 | 1,309 | 933 | 550 |
| 321 | 251 | 151 | 113 | 29 | 677 | 654 | 460 | 228 | 34 | 723 | 901 | 585 | 351 |
| 285 | 296 | 221 | –170 | –171 | 829 | 706 | 341 | 363 | –142 | 1,124 | 1,035 | 439 | 485 |
| 17.1 | 17.8 | 14.0 | 6.7 | 4.2 | 14.2 | 13.9 | 12.6 | 8.9 | 3.8 | 11.9 | 14.2 | 12.4* | 8.9* |
| 17.0 | 17.8 | 14.0 | 6.6 | 4.1 | 14.1 | 13.8 | 12.4 | 8.9 | 3.6 | 11.8 | 14.1 | 11.7 | 9.0 |
| 17.0 | 16.5 | 13.4 | 5.6 | 4.9 | 14.3 | 13.8 | 12.0 | 8.6 | 4.3 | 13.0 | 14.1 | 12.3 | 8.9 |
| 78,708 | 75,168 120,000 | 75,160 | 74,772 | 78,303 | 78,708 | 97,584 120,000 | 74,772 | 77,548 | 78,708 | 90,702 120,000 | |||
| 78,708 | 78,708 122,940 | 75,160 | 74,772 | 78,303 | 78,708 101,124 122,940 | 74,772 | 77,548 | 78,708 | 93,062 122,940 | ||||
| 78,708 | 75,168 120,000 | 75,332 | 74,772 | 75,770 | 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 | 75,770 | 78,708 | 78,708 122,940 | 74,772 | 74,772 | 78,708 | 78,708 122,940 | |||
| 4.08 | 3.34 | 1.26 | 1.50 | 0.39 | 8.65 | 8.31 | 4.71 | 1.90 | 0.45 | 9.32 | 11.45 | 6.45 | 2.93 |
| 4.08 | 3.19 | 1.23 | 1.50 | 0.39 | 8.65 | 8.31 | 4.55 | 1.85 | 0.45 | 9.32 | 11.45 | 6.29 | 2.86 |
| 264 | 243 | 320 | 67 | 474 | 453 | 300 | 512 | 218 | 719 | 673 | 875 | 778 | 730 |
| 3.35 | 3.23 | 2.67 | 0.89 | 6.34 | 5.79 | 3.81 | 5.25 | 1.82 | 9.62 | 8.68 | 11.12 | 8.58 | 6.08 |
| 8,003 | 6,908 | 6,798 | 7,275 | 7,781 | 9,059 | 8,003 | 6,908 | 6,765 | 7,442 | 8,625 | 7,700 | 7,082 | 6,525 |
| 2,679 | 2,582 | 2,170 | 2,104 | 2,600 | 2,863 | 2,679 | 2,582 | 2,170 | 2,422 | 2,774 | 2,238 | 2,602 | 1,846 |
| 1.0 | 1.3 | 0.8 | 0.7 | 0.9 | 0.9 | 1.0 | 1.3 | 0.8 | 0.8 | 0.8 | 0.8 | 1.2 | 0.7 |
| 2,640 | 2,001 | 2,732 | 2,882 | 2,969 | 3,102 | 2,640 | 2,001 | 2,732 | 3,003 | 3,346 | 2,969 | 2,190 | 2,853 |
| 33.54 | 26.62 | 22.77 | 38.26 | 39.71 | 40.94 | 33.54 | 26.62 | 22.77 | 40.16 | 44.75 | 37.72 | 27.82 | 23.77 |
| 33.54 | 25.42 | 22.22 | 38.26 | 39.71 | 40.94 | 33.54 | 25.42 | 22.22 | 40.16 | 44.75 | 37.72 | 27.82 | 23.21 |
| 33.0 | 29.0 | 40.2 | 39.6 | 38.2 | 34.2 | 33.0 | 29.0 | 40.2 | 40.4 | 38.8 | 38.6 | 30.9 | 43.7 |
| 33.6 | 23.9 | 11.3 | 4.0 | 2.4 | 31.3 | 33.6 | 23.9 | 11.3 | 1.1 | 23.4 | 35.9 | 25.1 | 13.7 |
| 22.2 | 17.2 | 12.3 | 6.6 | 5.4 | 25.0 | 22.2 | 17.2 | 12.3 | 4.3 | 20.0 | 24.5 | 18.2 | 11.9 |
| 23.0 | 18.0 | 10.9 | 6.7 | 5.6 | 26.0 | 23.0 | 18.0 | 10.9 | 4.3 | 20.7 | 25.4 | 19.1 | 12.2 |
| 24.2 | 17.4 | 10.7 | 5.8 | 8.1 | 26.3 | 24.2 | 17.4 | 10.7 | 5.1 | 22.8 | 25.4 | 19.9 | 11.8 |
| 15.7 | 12.7 | 9.7 | 4.9 | 4.0 | 17.7 | 15.7 | 12.7 | 9.7 | 3.3 | 14.3 | 17.4 | 13.3 | 9.4 |
| 10.5 | 13.6 | 11.9 | 2.4 | 2.1 | 8.0 | 8.6 | 9.3 | 6.4 | 1.8 | 6.1 | 8.6 | 8.4 | 6.9 |
| 5,133 | 4,240 | 4,120 | 4,485 | 4,714 | 5,576 | 5,133 | 4,240 | 4,120 | 4,435 | 5,291 | 5,256 | 4,942 | 4,479 |
*) Average capital is based on the quarterly values.
The consolidated accounts for the third 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.
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 these 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 per segment that have changed by more than ten percent compared with the previous year and at the end of 2009 are shown below:
Other assets have increased by 12 percent since the start of the year.
Fixed assets have decreased by 11 percent. Stock has increased by 63 percent. Other assets have increased by 55 percent since the start of the year.
Fixed assets have decreased by 11 percent compared with the previous year. Stock has increased by 50 percent. Other assets have decreased by 55 percent since the start of the year.
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 interim report has been submitted following approval by the Board of Directors.
Båstad 31 October 2010
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 2010. 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 (2010:1554) 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 31 October 2010
Bertel Enlund Authorised Accountant Ernst & Young AB
Staffan Landén Authorised Accountant Ernst & Young AB
Fourth quarter and Year End Report 2010 10 February 2011 Annual Report 2010 March/April 2011 Annual General Meeting 11 May 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 1 November 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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