Earnings Release • Oct 26, 2012
Earnings Release
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Lindab reports a good profit in the quarter thanks to fixed cost savings and efficiency activities.
" The 10.7 percent EBIT margin in the quarter is very encouraging particularly in the light of a 6 percent organic sales decline. It shows that the actions to improve Lindab's profitability are having the desired impact.
" However, we remain cautious about future demand levels. Macro indicators show much uncertainty in many markets and our sales decline accelerated in the second half of the quarter. In view of the deteriorating market conditions, we have taken additional actions resulting in fixed cost savings that already exceed the plan. We follow the market developments closely and are prepared to take further action if required.
Grevie, October 2012
David Brodetsky President and CEO
Why? Because at Lindab we think that less is more. We simplify construction for our customers while we are working to lessen the impact on the environment.
Our steel solutions help our customers to use less effort and less energy. At the same time, they generate less greenhouse gas emissions and lessen the carbon footprint.
www.lindab.com
Sales revenue during the third quarter amounted to SEK 1,773 m (1,891), a decrease of 6 percent compared with the third quarter of 2011. Adjusted for currency and structure the decrease was also 6 percent.
The negative sales trend is due to lower demand in the majority of European markets. The heightened macroeconomic turmoil in Europe has spread to the construction market. This can also be seen by declines in a number of construction-related market indicators since the spring.
Sales for the Building Components and Ventilation business areas were lower compared with the corresponding period the previous year. However the Building Systems business area continues to contribute with positive sales growth, with the Russian market in particular continuing to perform well.
Sales in the Nordic region, which is Lindab's largest, have decreased by 9 percent during the quarter when adjusted for currency and structure. All of the Nordic markets are showing negative sales development.
Sales in Western Europe decreased by 6 percent, adjusted for currency and structure. With the exception of France and Italy, the majority of markets in Western Europe are seeing negative sales trends.
Sales in CEE/CIS decreased by 2 percent, adjusted for currency and structure. Russia, which is an important market for Lindab, is continuing to see strong demand and is contributing positively to the sales development in the region. Other markets in the region are showing negative sales trends during the quarter.
Sales revenue for the period January–September amounted to SEK 4,989 m (5,023), which is a decrease of 1 percent compared with the corresponding period the previous year. Adjusted for currency and structure the decrease amounted to 2 percent. Completed acquisitions and divestments have together increased sales by 3 percent.
Operating profit (EBIT) for the third quarter amounted to SEK 190 m (172), excluding one-off items of SEK –7 m (0), see note 6.
Operating profit for the quarter increased compared to the corresponding period the previous year. Measures to increase efficiency and to lower fixed costs have offset the negative impact from the decline in sales during the quarter. The acquisitions of Plannja's sandwich panel and decking profile business, now Lindab Panel, and the company Centrum Klima have combined had a marginal but positive impact on the result. Integration costs within Plannja's project sales organisation during the first half of the quarter have affected the result of these acquisitions.
The cost-reduction programme that was announced at the start of 2012 has had a positive effect on profits for the quarter. The programme has been successful and since some markets have experienced weaker demand than expected, additional savings measures have been implemented, resulting in the total cost savings now exceeding the initial programme.
The quarter has been affected by one-off costs of SEK 7 m (0), which are attributable to structural measures as part of the cost reduction programme.
The operating margin (EBIT), excluding one-off items, increased during the third quarter to 10.7 percent (9.1).
The pre-tax result for the quarter amounted to SEK 138 m (129). The after-tax result amounted to SEK 110 m (88). Earnings per share amounted to SEK 1.45 (1.17). The average share price during the third quarter of 2012 has been lower than the conversion rates in the incentive programmes, therefore no dilutive effects have occurred.
The operating profit (EBIT) for the period January– September, excluding one-off items, amounted to SEK 355 m, which is an increase of 18 percent compared with the previous year's profit of SEK 300 m.
The operating margin (EBIT) for the same period, excluding one-off items, amounted to 7.1 percent (6.0).
Nordic region Western Europe CEE/CIS Other markets
The pre-tax result for the period January–September amounted to SEK 172 m (164). The after-tax result amounted to SEK 120 m (96). Earnings per share amounted to SEK 1.59 (1.28).
The profit for the period January–September has been affected by one-off costs totalling SEK 61 m (17). These are due to structural measures as part of the cost-reduction programme as well as transaction costs related to acquisitions.
On 10 January 2012, a cost-reduction programme was announced that is estimated to save SEK 150 m annually. The programme is aimed mainly at low performing business units and includes a headcount reduction of approximately 250 people as well as lower fixed costs. Some activities in the programme have been completed earlier than planned and others have been postponed, affecting the accrual of savings and one-off costs. The target for the full year 2012 will be exceeded as additional activities have been decided on and implemented in specific markets where demand has been lower than previously expected. Activities that were initiated in the quarter have resulted in one-off costs totalling SEK 7 m. The total one-off costs for the programme are estimated at approximately SEK 110 m, of which SEK 76 m has been recorded from the fourth quarter of 2011 up to and including the third quarter of 2012, see note 6.
Lindab's operations are affected by seasonal variations in the construction industry, and the greatest proportion of sales is normally seen during the second half of the year. The most substantial seasonal variations are to be found within the Building Components and Building Systems business areas. The Ventilation business area is less dependent on seasons and the weather since the installation of ventilation systems is mainly carried out indoors.
There is normally a deliberate stock build-up of mainly finished goods during the first six months, which becomes a stock reduction over the final six months as a result of increased activity within the construction market.
The total depreciation for the quarter is in line with last year amounting to SEK 36 m (40). The total depreciation for the the period January– September amounted to SEK 112 m (118).
Depreciation relates to tangible fixed assets.
Tax expenses for the quarter amounted to SEK 28 m (41). The pre-tax result amounted to SEK 138 m (129). The actual tax rate for the quarter was 20 percent (32). The average tax rate was 21 percent (23).
Tax expenses for the period January–September were SEK 52 m (68). The pre-tax result amounted to SEK 172 m (164). The actual tax rate for the period was 30 percent (41). The average tax rate was 17 percent (26).
The average tax rate is based on a weighting of Lindab's profit and tax rate in each country.
The discrepancies between the actual and the average tax rates are due to differences between taxable profit and profit before tax (EBT), and because the profit is divided among countries with high and low tax rates. Furthermore, deferred tax assets on loss carry forwards have not been capitalised in certain subsidiaries because of prevailing market uncertainty.
Cash flow from operating activities amounted to SEK 23 m for the third quarter compared with SEK 115 m for the same period the previous year. The decrease is due to a negative change in working capital. Working capital tied up increased, resulting in a cash flow effect of SEK –132 m (0). The change from the previous year is explained by a timing effect of payments to suppliers.
For the period January–September, cash flow from operating activities amounted to SEK 30 m (93). The decrease compared with the previous year is mainly attributable to the change in working capital during the period.
quarter Oct-Dec Jan-March April-June July-Sept rolling
*) Adjusted for one-off items.
4
One-off items are described in note 6.
quarter Oct-Dec Jan-March April-June July-Sept rolling
Cash flow from investing activities is reported under the headings "Investments" and "Company acquisitions".
Financing activities for the quarter resulted in a cash flow of SEK –6 m ( –57), which is explained by reduced borrowing.
Financing activities for the period January–September resulted in a cash flow of SEK 407 m (54) net, consisting of SEK 431 m (129) in increased borrowing, SEK 52 m (-) from the sale of treasury shares and SEK –76 m (–75) in paid dividends.
Investments in fixed assets amounted to SEK 31 m (35) for the quarter, while divestments amounted to SEK 1 m (2). The single biggest investment relates to the continuing expansion investment in Russia. Cash flow from investing activities amounted to SEK –31 m (–23) net, excluding acquisitions and sales.
Investments in fixed assets amounted to SEK 126 m (98) for the period January–September, while divestments amounted to SEK 6 m (14). The investments relate mainly to efficiency investments in the Czech Republic and expansion investments in Russia. Cash flow from investing activities amounted to SEK –120 m (–77) net, excluding acquisitions and the sale of subsidiaries.
During the quarter, Lindab acquired the remaining 3.3 percent of shares and now owns 100 percent of the Polish company Centrum Klima S.A. On 30 April, 51.8 percent of the company was acquired and a further 44.9 percent was acquired on 26 June. The company is a leading Polish manufacturer and distributor of ventilation and indoor climate systems. The company is based in Warsaw and is listed on the Warsaw stock exchange. The company has around 200 employees and had sales of SEK 205 m for the full year 2011. About 65 percent of sales are generated from the Polish market with the remainder from exports, mainly to Europe. The company is part of the Ventilation business area. The acquisition reinforces Lindab's position within air duct systems and enhances distribution; important synergies will also be generated.
On 19 March, Plannja's sandwich panel and decking profile business was acquired through an acquisition of assets. The business has annual sales of around SEK 150 m in the Nordic markets and employs approximately 50 people. The acquisition is strategically important for Lindab Building Components in the Nordic region, which is now able to offer own produced sandwich panels to both new and existing customers.
Cash flow from acquisitions for the period January– September amounted to SEK –280 m (–26) net.
The net debt amounted to SEK 2,218 m (1,945) at 30 September 2012. Currency fluctuations have had a marginal effect on the net debt during the quarter. The equity/assets ratio amounted to 38 percent (39) and the net debt-equity ratio was 0.8 (0.7). Net financial income during the quarter was SEK –45 m(–43).
For the period January–September, the net financial income amounted to SEK –122 m (–119).
The existing credit agreement with Nordea and Handelsbanken expires in February 2015. The total credit limit is SEK 3,000 m (3,500). The agreement contains covenants, which are monitored quarterly. Lindab fulfills the terms of its current credit agreement.
During the first quarter, Lindab pledged floating charges amounting to SEK 17 m. There have been no further changes during the second and third quarters. Floating charges therefore amount to a total of SEK 330 m pledged under the credit agreement with Nordea and Handelsbanken.
The parent company had no sales during the quarter. The after-tax result for the period amounted to SEK –15 m (–24).
For the period January–September, the corresponding profit was SEK –52 m (–59).
There have been no significant changes to what was stated by Lindab in its Annual Report for 2011 under Risks and risk management (pages 98–103).
The number of employees at the end of the quarter, converted to equivalent full-time employment, totalled 4,247 (4,424), including 249 from completed acquisitions and divestments since the corresponding quarter the previous year.
The Board has decided that the Annual General Meeting will be held on 15 May 2013. Notice to attend the meeting will be sent out in due course.
The Annual General Meeting 2012 decided, in accordance with the Board's proposal, to introduce a long-term incentive programme in the form of a performance-based share savings programme. The offer has been made to 83 participants in various management positions and senior executives at Lindab and 63 have accepted the offer, thereby acquiring a total of 79,100 Lindab shares. On maximum allocation, 368,900 Lindab shares will be transferred to the participants. Further information can be found under Corporate Governance at www.lindabgroup.com.
The highest price paid for Lindab shares during the period January–September was SEK 57.95 on 28 February, and the lowest was SEK 37.17 on 27 June. The closing price on 30 September 2012 was SEK 51.10. The average daily trading volume of Lindab shares was 229,478 shares per day (155,955).
Lindab holds 2,375,838 treasury shares (3,375,838), equivalent to 3.0 percent (4.3) of the total number of Lindab shares. The number of outstanding shares totals 76,331,982 (75,331,982), while the total number of shares is 78,707,820.
The biggest shareholders by the end of the quarter, in relation to the number of outstanding shares are Creades AB with 12.1 percent (-), Systemair AB with 12.0 percent (-), Livförsäkringsaktiebolaget Skandia with 9.3 percent (9.1), Lannebo Fonder with 8.7 percent (6.2) and Swedbank Robur Fonder with 7.4 percent (9.3). The holdings of the ten largest shareholders constitute 63.8 percent of the shares (63.6), excluding Lindab's own holding.
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 pages 16–17.
One-off items are specified in note 6.
At the Extraordinary General Meeting on 16 October 2012 it was decided to reduce the number of Board members from eight to six. Furthermore, for the duration until the next AGM, Sonat Burman-Olsson, Stefan Charette, Erik Eberhardson and Birgit Nørgaard were re-elected as board members, and Gerald Engström and Kjell Nilsson were newly elected as board members, whereby Kjell Nilsson was newly elected Chairman of the board. Union representatives Markku Rantala and Pontus Andersson remain regular board members.
| July-Sept 2012 | July-Sept 2011 | Jan-Sept 2012 | Jan-Sept 2011 | Jan-Dec 2011 | |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 1,773 | 1,891 | 4,989 | 5,023 | 6,878 |
| Change, SEK m | –118 | 10 | –34 | 193 | 351 |
| Change, % | –6 | 1 | –1 | 4 | 5 |
| Of which | |||||
| Volumes and prices, % | –6 | 4 | –2 | 9 | 9 |
| Acquisitions/ | |||||
| divestments, % | 4 | 0 | 3 | 0 | 0 |
| Currency effects, % | –4 | –3 | –2 | –5 | –4 |
| SEK m | July-Sept 2012 | % July-Sept 2011 | % | Jan-Sept 2012 | % | Jan-Sept 2011 | % | Jan-Dec 2011 | % | |
|---|---|---|---|---|---|---|---|---|---|---|
| Nordic region | 759 | 43 | 825 | 43 | 2,251 | 45 | 2,267 | 45 | 3,158 | 46 |
| Western Europe | 485 | 27 | 525 | 28 | 1,435 | 29 | 1,463 | 29 | 1,949 | 28 |
| CEE/CIS | 479 | 27 | 487 | 26 | 1,153 | 23 | 1,122 | 22 | 1,553 | 23 |
| Other markets | 50 | 3 | 54 | 3 | 150 | 3 | 171 | 4 | 218 | 3 |
| Total | 1,773 | 100 | 1,891 | 100 | 4,989 | 100 | 5,023 | 100 | 6,878 | 100 |
| SEK m | July-Sept 2012 | % July-Sept 2011 | % | Jan-Sept 2012 | % | Jan-Sept 2011 | % | Jan-Dec 2011 | % | |
|---|---|---|---|---|---|---|---|---|---|---|
| Ventilation | 904 | 51 | 932 | 49 | 2,715 | 55 | 2,674 | 53 | 3,612 | 53 |
| Building Components | 576 | 32 | 674 | 36 | 1,519 | 30 | 1,646 | 33 | 2,268 | 33 |
| Building Systems | 293 | 17 | 285 | 15 | 755 | 15 | 703 | 14 | 998 | 14 |
| Other operations | - | - | - | - | - | - | - | - | - | - |
| Total | 1,773 | 100 | 1,891 | 100 | 4,989 | 100 | 5,023 | 100 | 6,878 | 100 |
| Gross internal sales all | ||||||||||
| segments | 2 | 7 | 8 | 19 | 12 |
| SEK m | July-Sept 2012 | July-Sept 2011 | Jan-Sept 2012 | Jan-Sept 2011 | Jan-Dec 2011 |
|---|---|---|---|---|---|
| Ventilation | 85 | 65 | 220 | 176 | 221 |
| Building Components | 67 | 90 | 106 | 148 | 192 |
| Building Systems | 48 | 22 | 62 | 7 | 38 |
| Other operations | –10 | –5 | –33 | –31 | –44 |
| Total (EBIT), excluding | |||||
| one-off items | 190 | 172 | 355 | 300 | 407 |
| One-off items* | –7 | 0 | –61 | –17 | –59 |
| Total (EBIT), including | |||||
| one-off items | 183 | 172 | 294 | 283 | 348 |
| Net financial income | –45 | –43 | –122 | –119 | –162 |
| Result before tax (EBT) | 138 | 129 | 172 | 164 | 186 |
*) One-off items are described in note 6.
Sales revenue during the third quarter decreased by 3 percent compared with the corresponding period the previous year, amounting to SEK 904 m (932). Adjusted for currency effects and structure, sales revenue decreased by 4 percent. The acquisitions of Centrum Klima and Elia plus the divestment of Benone have altogether positively affected sales by 5 percent during the quarter compared with the corresponding period the previous year.
Sales revenue for the period January–September amounted to SEK 2,715 m (2,674). When adjusted for currency and structure, sales revenue decreased by 1 percent.
The business area's main segment is non-residential construction. Sales for the business area were unchanged in Western Europe, while the Nordic countries showed negative sales trend. Including the acquisition of Centrum Klima, sales in CEE/CIS increased strongly. In the Nordic region, all markets reported lower sales compared to the same quarter last year. Markets such as France and Italy are contributing positively to sales in Western Europe, while the region's two biggest markets, the UK and Germany, are showing slightly negative sales trends.
Operating profit (EBIT) for the third quarter, excluding one-off items, amounted to SEK 85 m (65). The operating margin (EBIT) amounted to 9.4 percent (7.0). The improved profit was due to lower fixed costs and higher gross margins due to efficiency activities.
One-off items for the quarter amounted to SEK –6 m (-) and related to restructuring costs resulting from the cost reduction programme.
Operating profit (EBIT) for the period January– September, excluding one-off items, amounted to SEK 220 m (176), corresponding to an increase of 25 percent.
The Polish ventilation company Centrum Klima acquired during the previous quarter is now owned 100 percent by Lindab and synergies are starting to be realised.
The focus on distribution and sales is continuing. The move of the Gothenburg branch to an easy-access location with improved layout has generated strong sales growth in the first three months. The first Nordic unmanned self-service branch is now open in Odense, Denmark.
Within the product area for indoor climate, Comfort, efforts are continuing to develop energy efficient products. Atrium Plana was launched during the quarter, a discreet and highly efficient heating panel.
Lindab Inside is the new concept for simple, energy efficient and economic solutions for residential ventilation.
| KEY FIGURES VENTILATION |
July-Sept 2012 |
July-Sept 2011 |
Jan-Sept 2012 |
Jan-Sept 2011 |
Jan-Dec 2011 |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 904 | 932 | 2,715 | 2,674 | 3,612 |
| Operating profit (EBIT)*, SEK m | 85 | 65 | 220 | 176 | 221 |
| Operating margin (EBIT)*, % | 9.4 | 7.0 | 8.1 | 6.6 | 6.1 |
| No. of employees at close of period | 2,427 | 2,432 | 2,427 | 2,432 | 2,415 |
*) Excluding one-off items.
One-off items are described in note 6.
Nordic region Western Europe CEE/CIS Other markets
2010 2011 2012
Sales revenue decreased by 15 percent to SEK 576 m (674). Adjusted for currency and structure, sales revenue decreased by 15 percent.
The business area, which has sales within the residential and non-residential segments, continued to show negative sales development during the quarter compared with the previous year. In the Nordic region, all markets reported decreased sales after a further decline in demand. Sales development in CEE/CIS was negative due to the continued weak demand in the region.
Sales for the period January–September decreased by 8 percent to SEK 1,519 m (1,646). Adjusted for currency and structure the decrease was 10 percent.
Operating profit (EBIT) for the quarter, excluding one-off items, amounted to SEK 67 m (90). The operating margin (EBIT) amounted to 11.6 percent (13.4) for the quarter. The change in profit is due to lower volumes, partly offset by lower fixed costs. One-off items for the quarter amounted to SEK –1 m (-) and related to restructuring costs resulting from the cost reduction programme, see note 6.
Operating profit (EBIT) for the period January– September, excluding one-off items, amounted to SEK 106 m (148), corresponding to an decrease of 28 percent.
Efficiency measures in addition to the initial cost reduction programme have been implemented in CEE where demand has weakened more than previously expected.
New products were launched during the quarter including a new façade cassette and two new decking profiles. One of the decking profiles has been specially designed for heat-insulating and sound-proofing roofing solutions. The second is mainly characterised by its broad width combined with its load-bearing capacity. Lindab has also developed new calculation tools to simplify project planning according to European standards.
Complete aid facility of 665 square metres in Sudan ready in 90 days. Thanks to Lindab's technical know-how and products including roof panels, profiled sheeting and wall studs, it was possible.
| KEY FIGURES BUILDING COMPONENTS |
July-Sept 2012 |
July-Sept 2011 |
Jan-Sept 2012 |
Jan-Sept 2011 |
Jan-Dec 2011 |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 576 | 674 | 1,519 | 1,646 | 2,268 |
| Operating profit (EBIT)*, SEK m | 67 | 90 | 106 | 148 | 192 |
| Operating margin (EBIT)*, % | 11.6 | 13.4 | 7.0 | 9.0 | 8.5 |
| No. of employees at close of period | 981 | 1,058 | 981 | 1,058 | 995 |
*) Excluding one-off items.
One-off items are described in note 6.
SALES REVENUE PER QUARTER, SEK m
2010 2011 2012
Sales revenue increased by 3 percent to SEK 293 m (285) during the third quarter. Adjusted for currency effects, sales increased by 10 percent.
Sales for the business showed positive growth during the quarter, in which the CEE/CIS region and particularly Russia have contributed strongly. Western Europe is showing a negative sales trend.
The order intake is slightly lower compared with the corresponding quarter in 2011. Growth in Russia and the CIS remains good.
Sales revenue for the period January–September increased by 7 percent to SEK 755 m (703). Adjusted for currency the increase was 10 percent.
Operating profit (EBIT) for the quarter, excluding one-off items, amounted to SEK 48 m (22). The operating margin (EBIT) amounted to 16.4 percent (7.7) for the quarter.
The improved profit was due to higher volumes and higher gross margins compared with the same quarter last year.
Operating profit (EBIT) for the period January– September, excluding one-off items, amounted to SEK 62 m (7).
The first order received for the more cost-effective small building solution. Preparations for the manufacture have started during the quarter and the concept will be rolled out fully early next year.
Efficiency measures related to the rationalisation of production within Western Europe and CEE are continuing as planned.
The expansion of the plant in Yaroslavl, Russia is on track and is expected to be completed by the year end.
The new hangar, a Lindab-building, at Domodedovo airport outside Moscow was made-to-measure to the executive jet's dimensions and erected in two months.
| KEY FIGURES BUILDING SYSTEMS |
July-Sept 2012 |
July-Sept 2011 |
Jan-Sept 2012 |
Jan-Sept 2011 |
Jan-Dec 2011 |
|---|---|---|---|---|---|
| Sales revenue, SEK m | 293 | 285 | 755 | 703 | 998 |
| Operating profit (EBIT)*, SEK m | 48 | 22 | 62 | 7 | 38 |
| Operating margin (EBIT)*, % | 16.4 | 7.7 | 8.2 | 1.0 | 3.8 |
| No. of employees at close of period | 725 | 818 | 725 | 818 | 821 |
*) Excluding one-off items.
One-off items are described in note 6.
Western Europe CEE/CIS
SALES REVENUE PER QUARTER, SEK m
(Income statement)
| Rolling 12 M | ||||||
|---|---|---|---|---|---|---|
| July-Sept | July-Sept | Jan-Sept | Jan-Sept | Oct 2011- | Jan-Dec | |
| Amounts in SEK m | 2012 | 2011 | 2012 | 2011 | Sept 2012 | 2011 |
| Sales revenue | 1,773 | 1,891 | 4,989 | 5,023 | 6,844 | 6,878 |
| Cost of goods sold | –1,245 | –1,350 | –3,567 | –3,622 | –4,932 | –4,987 |
| Gross profit | 528 | 541 | 1,422 | 1,401 | 1,912 | 1,891 |
| Other operating income | 35 | 19 | 65 | 49 | 93 | 77 |
| Selling expenses | –208 | –229 | –677 | –685 | –931 | –939 |
| Administrative expenses | –119 | –124 | –360 | –378 | –499 | –517 |
| R & D costs | –9 | –9 | –32 | –29 | –43 | –40 |
| Other operating expenses | –44 | –26 | –124 | –75 | –173 | –124 |
| Total operating expenses | –345 | –369 | –1,128 | –1,118 | –1,553 | –1,543 |
| Operating profit (EBIT)* | 183 | 172 | 294 | 283 | 359 | 348 |
| Interest income Interest expenses |
1 –43 |
2 –43 |
5 –122 |
5 –121 |
8 –169 |
8 –168 |
| Other financial income and expenses | –3 | –2 | –5 | –3 | –4 | –2 |
| Net financial income | –45 | –43 | –122 | –119 | –165 | –162 |
| Result before tax (EBT) | 138 | 129 | 172 | 164 | 194 | 186 |
| Tax | –28 | –41 | –52 | –68 | –79 | –95 |
| Profit for the period | 110 | 88 | 120 | 96 | 115 | 91 |
| –attributable to the parent company's | ||||||
| shareholders | 110 | 88 | 120 | 96 | 115 | 91 |
| –attributable to non-controlling interest | 0 | - | 0 | - | 0 | - |
| Other comprehensive income | ||||||
| Cash flow hedges | 3 | –11 | 8 | –6 | 12 | –2 |
| Translation differences, foreign operations | –121 | 6 | –148 | 72 | –274 | –54 |
| Income tax attributable to cash flow hedges | –1 | 3 | –2 | 2 | –3 | 1 |
| Other comprehensive income | –119 | –2 | –142 | 68 | –265 | –55 |
| Total comprehensive income | –9 | 86 | –22 | 164 | –150 | 36 |
| –attributable to the parent company's | ||||||
| shareholders | –9 | 86 | –22 | 164 | –150 | 36 |
| –attributable to non-controlling interest | 0 | - | 0 | - | 0 | - |
| Earnings per share, SEK | ||||||
| Undiluted | 1.45 | 1.17 | 1.59 | 1.28 | 1.52 | 1.21 |
| Diluted | 1.45 | 1.17 | 1.59 | 1.28 | 1.52 | 1.21 |
*) One-off items are described in note 6.
| (Indirect method) | ||
|---|---|---|
| ------------------- | -- | -- |
| Amounts in SEK m | July-Sept 2012 |
July-Sept 2011 |
Jan-Sept 2012 |
Jan-Sept 2011 |
Rolling 12 M Oct 2011- Sept 2012 |
Jan-Dec 2011 |
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Operating profit | 183 | 172 | 294 | 283 | 359 | 348 |
| Reversal of depreciation/amortisation | 36 | 40 | 112 | 118 | 157 | 163 |
| Reversal of capital gains (–) / losses (+) reported in | ||||||
| operating profit | 0 | 3 | –1 | 3 | 0 | 4 |
| Provisions, not affecting cash flow | 0 | –18 | –10 | –14 | 10 | 6 |
| Adjustment for other items not affecting cash flow | 0 | –5 | 4 | 17 | 21 | 34 |
| Total | 219 | 192 | 399 | 407 | 547 | 555 |
| Interest received | 4 | 2 | 12 | 4 | 12 | 4 |
| Interest paid | –40 | –48 | –113 | –135 | –162 | –184 |
| Tax paid | –28 | –31 | –84 | –62 | –93 | –71 |
| Cash flow from operating activities before | ||||||
| change in working capital | 155 | 115 | 214 | 214 | 304 | 304 |
| Change in working capital | ||||||
| Stock (increase – /decrease +) | –15 | 8 | –125 | –147 | 90 | 68 |
| Operating receivables (increase – /decrease +) | –41 | –76 | –211 | –383 | 34 | –138 |
| Operating liabilities (increase + /decrease –) | –76 | 68 | 152 | 409 | –146 | 111 |
| Total change in working capital | –132 | 0 | –184 | –121 | –22 | 41 |
| Cash flow from operating activities | 23 | 115 | 30 | 93 | 282 | 345 |
| Investing activities | ||||||
| Acquisition of Group companies | –8 | - | –280 | –26 | –286 | –32 |
| Sales of Group companies | - | 3 | - | 3 | - | 3 |
| Investments in intangible fixed assets | –4 | –9 | –11 | –20 | –23 | –32 |
| Investments in tangible fixed assets | –27 | –26 | –115 | –78 | –148 | –111 |
| Change in financial fixed assets | –1 | 0 | 0 | 0 | 0 | 0 |
| Sale/disposal of intangible fixed assets | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale/disposal of tangible fixed assets | 1 | 2 | 6 | 14 | 14 | 22 |
| Received Government grants | - | 7 | - | 7 | - | 7 |
| Cash flow from investing activities | –39 | –23 | –400 | –100 | –443 | –143 |
| Financing activities | ||||||
| Increase (+) / decrease (–) in borrowing | –6 | –57 | 431 | 129 | 175 | –127 |
| Sale of treasury shares | - | - | 52 | - | 52 | - |
| Dividend to shareholders | - | - | –76 | –75 | –76 | –75 |
| Cash flow from financing activities | –6 | –57 | 407 | 54 | 151 | –202 |
| Cash flow for the period | –22 | 35 | 37 | 47 | –10 | 0 |
| Cash and cash equivalents at start of the period | 292 | 257 | 235 | 239 | 295 | 239 |
| Effect of exchange rate changes on cash and | ||||||
| cash equivalents | –10 | 3 | –12 | 9 | –25 | –4 |
| Cash and cash equivalents at end of the period | 260 | 295 | 260 | 295 | 260 | 235 |
| Amounts in SEK m | 30 Sept 2012 | 30 Sept 2011 | 31 Dec 2011 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Goodwill | 2,648 | 2,652 | 2,591 |
| Other intangible fixed assets | 62 | 61 | 66 |
| Tangible fixed assets | 1,204 | 1,129 | 1,084 |
| Financial fixed assets, interest bearing | 36 | 26 | 36 |
| Other financial fixed assets | 254 | 381 | 320 |
| Total fixed assets | 4,204 | 4,249 | 4,097 |
| Current assets | |||
| Stock | 1,120 | 1,205 | 962 |
| Accounts receivable | 1,229 | 1,319 | 1,023 |
| Other current assets | 204 | 133 | 154 |
| Other receivables, interest bearing | 4 | 6 | 8 |
| Cash and bank | 260 | 295 | 235 |
| Total current assets | 2,817 | 2,958 | 2,382 |
| TOTAL ASSETS | 7,021 | 7,207 | 6,479 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,646 | 2,827 | 2,699 |
| Long-term liabilities | |||
| Interest-bearing provisions | 133 | 120 | 135 |
| Interest-bearing liabilities | 2,213 | 2,052 | 1,772 |
| Provisions | 241 | 360 | 338 |
| Other long-term liabilities | 11 | 13 | 13 |
| Total long-term liabilities | 2,598 | 2,545 | 2,258 |
| Current liabilities | |||
| Interest-bearing liabilities | 172 | 99 | 118 |
| Provisions | 42 | 40 | 49 |
| Accounts payable | 700 | 854 | 708 |
| Other short-term liabilities | 863 | 842 | 647 |
| Total current liabilities | 1,777 | 1,835 | 1,522 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 7,021 | 7,207 | 6,479 |
| Equity relating to the parent company's shareholders | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in SEK m | Share capital |
Other con tributed capital |
Hedging reserve |
Foreign currency transl. adj. |
Profit brought forward |
Total | Non-con trolling interest |
Total equity |
| Opening balance, 1 January 2011 | 79 | 2,251 | –7 | 46 | 386 | 2,755 | - | 2,755 |
| Profit for the period | 91 | 91 | - | 91 | ||||
| Other comprehensive income | –1 | –54 | –55 | - | –55 | |||
| Incentive programme | 1 | 1 | - | 1 | ||||
| Futures contracts to acquire treasury shares, | ||||||||
| incentive programme | –18 | –18 | - | –18 | ||||
| Dividend to shareholders | –75 | –75 | - | –75 | ||||
| Closing balance, 31 December 2011 | 79 | 2,234 | –8 | –8 | 402 | 2,699 | - | 2,699 |
| Opening balance, 1 January 2012 | 79 | 2,234 | –8 | –8 | 402 | 2,699 | - | 2,699 |
| Profit for the period | 120 | 120 | - | 120 | ||||
| Other comprehensive income | 6 | –148 | –142 | - | –142 | |||
| Sale of treasury shares | 52 | 52 | - | 52 | ||||
| Incentive programme1) | 2 | 2 | - | 2 | ||||
| Futures contracts to acquire treasury shares, | ||||||||
| incentive programme1) | –9 | –9 | - | –9 | ||||
| Dividend to shareholders | –76 | –76 | - | –76 | ||||
| Closing balance, 30 Septemer 2012 | 79 | 2,227 | –2 | –156 | 498 | 2,646 | - | 2,646 |
1) The 2012 Annual General Meeting resolved, as in the previous year, to implement a long-term share-based incentive programme.
The offering has been aimed at 83 participants in various management positions and senior executives at Lindab. 63 have accepted the offer. On maximum allocation, 368,900 shares will be transferred to the participants. These shares have been secured in the form of futures contracts to acquire
treasury shares with third parties, which means that no dilution occurs. Provisions for the incentive programme initiated in 2011 are continuing during 2012.
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 2,375,838 (3,375,838) treasury shares, corresponding to 3.0 percent (4.3) of the total number of Lindab shares, following sale of 1,000,000 treasury shares in 2012.
The Annual General Meeting on 9 May 2012 resolved to pay a dividend to shareholders of SEK 1.00 per share, corresponding to SEK 76 m. A dividend of SEK 75 m was paid last year. The Annual General Meeting resolved that the remainder of the retained earnings of SEK 544 m would be carried forward. The Annual General Meeting also decided upon the sale of treasury shares, which took place in the second quarter 2012. The sale increased Profit brought forward by SEK 52 m.
Furthermore, the Annual General Meeting resolved to introduce a further long-term incentive programme in the form of a performance-based share savings programme for senior executives and key employees in the Group, as in the previous year, see note 1.
| Amounts in SEK m | July-Sept 2012 |
July-Sept 2011 |
Jan-Sept 2012 |
Jan-Sept 2011 |
Jan-Dec 2011 |
|---|---|---|---|---|---|
| Administrative expenses | 7 | –2 | 3 | –3 | –3 |
| Other operating income/costs | - | –1 | - | –1 | –3 |
| Operating profit | 7 | –3 | 3 | –4 | –6 |
| Profit from subsidiaries | - | - | - | - | 111 |
| Interest expenses, internal | –27 | –29 | –73 | –76 | –106 |
| Result before tax | –20 | –32 | –70 | –80 | –1 |
| Tax | 5 | 8 | 18 | 21 | 1 |
| Profit for the period* | –15 | –24 | –52 | –59 | 0 |
*) Comprehensive income corresponds to profit for the period.
| Amounts in SEK m | 30 Sept 2012 | 30 Sept 2011 | 31 Dec 2011 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Shares in Group companies | 3,467 | 3,467 | 3,467 |
| Financial fixed assets, interest bearing | 7 | 8 | 7 |
| Other long-term receivables | 20 | 24 | 2 |
| Total fixed assets | 3,494 | 3,499 | 3,476 |
| Current assets | |||
| Other receivables | 9 | 6 | 0 |
| Cash and bank | 3 | 1 | 7 |
| Total current assets | 12 | 7 | 7 |
| TOTAL ASSETS | 3,506 | 3,506 | 3,483 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 1,331 | 1,348 | 1,407 |
| Provisions | |||
| Interest-bearing provisions | 10 | 9 | 10 |
| Long-term liabilities | |||
| Liabilities to Group companies | 2,161 | 2,145 | 2,064 |
| Total provisions and long-term liabilities | 2,171 | 2,154 | 2,074 |
| Current liabilities | |||
| Non-interest-bearing liabilities | 4 | 4 | 2 |
| Total current liabilities | 4 | 4 | 2 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,506 | 3,506 | 3,483 |
| 2012 | 2011 | 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1,773 | 1,737 | 1,479 | 1,855 | 1,891 | 1,755 | 1,377 | 1,697 | 1,881 | 1,715 | 1,234 | |
| Operating profit, (EBITDA)1) | 219 | 158 | 29 | 110 | 211 | 174 | 15 | 112 | 247 | 134 | 72 | |
| Operating profit, (EBITA)2) | 183 | 119 | –8 | 65 | 172 | 135 | –24 | 76 | 206 | 92 | 27 | |
| Depreciation/amortisation and write-downs | 36 | 39 | 37 | 45 | 40 | 39 | 39 | 146 | 42 | 45 | 47 | |
| Operating profit, (EBIT)3) | 183 | 119 | –8 | 65 | 172 | 135 | –24 | –35 | 205 | 89 | 25 | |
| Operating profit, (EBIT), excluding one-off items | 190 | 135 | 30 | 107 | 172 | 135 | –7 | 75 | 212 | 110 | –50 | |
| After tax result | 110 | 56 | –46 | –5 | 88 | 60 | –52 | –86 | 114 | 27 | –28 | |
| Total comprehensive income | –9 | 34 | –47 | –128 | 86 | 153 | –75 | –128 | 13 | –26 | –157 | |
| Operating margin (EBITA), %4) | 10.3 | 6.9 | –0.5 | 3.5 | 9.1 | 7.7 | –1.7 | 4.5 | 11.0 | 5.4 | 2.2 | |
| Operating margin (EBIT), %5) | ||||||||||||
| 10.3 | 6.9 | –0.5 | 3.5 | 9.1 | 7.7 | –1.7 | –2.1 | 10.9 | 5.2 | 2.0 | ||
| Operating margin (EBIT), excluding one-off items, % | 10.7 | 7.8 | 2.0 | 5.8 | 9.1 | 7.7 | –0.5 | 4.4 | 11.3 | 6.4 | –4.1 | |
| Undiluted average number of shares, (000's) | 75,658 | 75,980 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 74,810 | |
| Diluted average number of shares, (000's)6) | 75,658 | 75,980 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,398 | 75,332 | 75,332 | 74,810 | |
| Undiluted number of shares, (000's) | 76,332 | 76,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | |
| Diluted number of shares, (000's)6) | 76,332 | 76,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,332 | 75,398 | 75,332 | 75,332 | 75,332 | |
| Undiluted earnings per share, SEK7) | 1.45 | 0.74 | –0.61 | –0.07 | 1.17 | 0.80 | –0.69 | –1.14 | 1.51 | 0.36 | –0.37 | |
| Diluted earnings per share, SEK8) | 1.45 | 0.74 | –0.61 | –0.07 | 1.17 | 0.80 | –0.69 | –1.14 | 1.51 | 0.36 | –0.37 | |
| Cash flow from operating activities | 23 | 97 | –90 | 252 | 115 | 217 | –239 | 324 | 172 | 67 | –172 | |
| Cash flow from operating activities per share, | ||||||||||||
| SEK9) | 0.30 | 1.29 | –1.19 | 3.35 | 1.54 | 2.88 | –3.17 | 4.30 | 2.28 | 0.89 | –2.30 | |
| Total assets | 7,021 | 7,144 | 6,513 | 6,479 | 7,207 | 7,122 | 6,674 | 6,570 | 7,275 | 7,482 | 7,206 | |
| Net debt10) | 2,218 | 2,192 | 1,932 | 1,747 | 1,945 | 2,043 | 2,097 | 1,856 | 2,104 | 2,243 | 2,286 | |
| Net debt/equity ratio, times11) | 0.8 | 0.8 | 0.7 | 0.6 | 0.7 | 0.7 | 0.8 | 0.7 | 0.7 | 0.8 | 0.8 | |
| Equity | 2,646 | 2,670 | 2,652 | 2,699 | 2,827 | 2,758 | 2,680 | 2,755 | 2,882 | 2,869 | 2,889 | |
| Undiluted equity per share, SEK12) | 34.66 | 35.44 | 35.20 | 35.83 | 37.53 | 36.61 | 35.58 | 36.57 | 38.26 | 38.08 | 38.35 | |
| Diluted equity per share, SEK13) | 34.66 | 34.98 | 35.20 | 35.83 | 37.53 | 36.61 | 35.58 | 36.54 | 38.26 | 38.08 | 38.35 | |
| Equity/asset ratio, % 14) | ||||||||||||
| 37.7 | 37.4 | 40.7 | 41.7 | 39.2 | 38.7 | 40.2 | 41.9 | 39.6 | 38.3 | 40.1 | ||
| Return on equity, %15) | 4.3 | 3.4 | 3.6 | 3.3 | 0.4 | 1.3 | 0.1 | 0.9 | 4.0 | 1.4 | 0.9 | |
| Return on capital employed, %16) | 7.3 | 7.0 | 7.5 | 7.1 | 5.0 | 5.6 | 4.7 | 5.5 | 6.6 | 4.7 | 4.5 | |
| Return on operating capital, %17) | 7.6 | 7.4 | 7.8 | 7.4 | 5.2 | 5.8 | 4.8 | 5.6 | 6.7 | 4.7 | 4.5 | |
| Return on operating capital, excluding one-off | ||||||||||||
| items, % | 9.8 | 9.5 | 9.5 | 8.7 | 7.8 | 8.5 | 7.9 | 6.9 | 5.8 | 4.4 | 4.0 | |
| Return on total assets, %18) | 5.4 | 5.2 | 5.5 | 5.2 | 3.6 | 4.1 | 3.5 | 4.1 | 4.9 | 3.5 | 3.4 | |
| Interest coverage ratio, times19) | 4.1 | 2.9 | –0.2 | 1.5 | 4.1 | 3.4 | –0.6 | –0.7 | 4.4 | 2.0 | 0.6 | |
| No. of employees at close of period20) | 4,247 | 4,424 | 4,485 | |||||||||
| 4,510 | 4,344 | 4,347 | 4,487 | 4,395 | 4,381 | 4,444 | 4,394 |
*) Operating profit (EBITA) reported excluding one-off items, as reported originally.
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 January-September Full-year Periods 2009 2008 2007 2012 2011 2010 2009 2008 2007 2011 2010 2009 2008 July July July Sept Sept Sept 1,825 2,717 2,494 4,989 5,023 4,830 5,417 7,413 6,795 6,878 6,527 7,019 9,840 165 496 475 406 400 453 387 1,206 1,094 511 565 479 1,388 113 447 426 294 283 325 228 1,055 946 348 401 265 1,172 56 52 51 112 118 134 168 159 155 163 280 225 225 110 445 424 294 283 319 220 1,048 939 348 284 254 1,163 145 458 424 355 300 272 267 1,061 939 407 347 301 1,279 37 294 321 120 96 113 29 677 654 91 27 34 723 –150 404 285 –22 164 –170 –171 829 706 36 –298 –142 1,124 6.2 16.5 17.1 5.9 5.6 6.7 4.2 14.2 13.9 5.1 6.1 3.8 11.9 6.0 16.4 17.0 5.9 5.6 6.6 4.1 14.1 13.8 5.1 4.4 3.6 11.8 7.9 16.9 17.0 7.1 6.0 5.6 4.9 14.3 13.8 5.9 5.3 4.3 13.0 74,772 77,502 78,708 75,658 75.332 75.160 74.772 78.303 78.708 75,332 75,203 74,772 77,548 78,708 74,772 77,502 78,708 75,658 75.332 75.160 74.772 78.303 78.708 75,332 75,203 74,772 77,548 78,708 74,772 75,770 78,708 76,332 75.332 75.332 74.772 75.770 78.708 75,332 75,332 74,772 74,772 78,708 74,772 75,770 78,708 76,332 75.332 75.332 74.772 75.770 78.708 75,332 75,332 74,772 74,772 78,708 0.49 3.79 4.08 1.59 1.28 1.50 0.39 8.65 8.31 1.21 0.36 0.45 9.32 0.49 3.79 4.08 1.59 1.28 1.50 0.39 8.65 8.31 1.21 0.36 0.45 9.32 329 127 264 30 93 67 474 453 300 345 391 719 673 4.40 1.64 3.35 0.40 1.24 0.89 6.34 5.79 3.81 4.58 5.20 9.62 8.68 7,781 9,059 8,003 7,021 7,207 7,275 7,781 9,059 8,003 6,479 6,570 7,442 8,625 2,600 2,863 2,679 2,218 1,945 2,104 2,600 2,863 2,679 1,747 1,856 2,422 2,774 0.9 0.9 1.0 0.8 0.7 0.7 0.9 0.9 1.0 0.6 0.7 0.8 0.8 2,969 3,102 2,640 2,646 2,827 2,882 2,969 3,102 2,640 2,699 2,755 3,003 3,346 39.71 40.94 33.54 34.66 37.53 38.26 39.71 40.94 33.54 35.83 36.57 40.16 44.75 39.71 40.94 33.54 34.66 37.53 38.26 39.71 40.94 33.54 35.83 36.57 40.16 44.75 38.2 34.2 33.0 37.7 39.2 39.6 38.2 34.2 33.0 41.7 41.9 40.4 38.8 2.4 31.3 33.6 4.3 0.4 4.0 2.4 31.3 33.6 3.3 0.9 1.1 23.4 5.4 25.0 22.2 7.3 5.0 6.6 5.4 25.0 22.2 7.1 5.5 4.3 20.0 5.6 26.0 23.0 7.6 5.2 6.7 5.6 26.0 23.0 7.4 5.6 4.3 20.7 8.1 26.3 24.2 9.8 7.8 5.8 8.1 26.3 24.2 8.7 6.9 5.1 22.8 4,0 17.7 15.7 5.4 3.6 4.9 4.0 17.7 15.7 5.2 4.1 3.3 14.3 3.1 9.2 10.5 2.4 2.4 2.4 2.1 8.0 8.6 2.1 1.6 1.8 6.1 4,714 5,576 5,133 4,247 4,424 4,485 4,714 5,576 5,133 4,347 4,381 4,435 5,291 |
|---|
The consolidated accounts for the third quarter and the period January-September 2012, as for the annual accounts for 2011, 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, Supplementary Accounting Rules for Groups.
This quarterly report has been prepared in accordance with IAS 34.
The Group applies the same accounting policies as described in the Annual Report for 2011 with the following additions.
Transactions with non-controlling interests are reported as transactions with shareholders. For acquisitions, the Group may choose to evaluate these holdings to either the proportionate share of the acquired company's net assets or the net assets' fair value, which affects the reported goodwill associated with the acquisition.
For acquisitions completed in stages, the goodwill is determined on the date at which control interest is obtained. For purchases from non-controlling interests, the difference between the consideration paid and the relevant share acquired in the subsidiary's net assets is recorded in equity.
The incentive programmes, initiated in 2011 and 2012, assumes that each participant is entitled to receive one matching share for each acquired share and up to six performance shares. The allocation of shares at the end of the programme depends on the vesting conditions that have been met. Since it is usually not possible to measure the services provided by employees, in order to obtain the individual components in the reward package, Lindab values the share-based payments based on the fair value of the equity instruments in accordance with IFRS 2, paragraph 11. If the conditions are met, Lindab reports a cost for the reward programme and a similar entry in equity in accordance with IFRS 2, paragraph 7. Lindab continuously assesses whether the current conditions of the programme are met and subsequently regulates the cumulative personnel costs.
In a separate transaction, as a result of the incentive programmes, forward contracts have been agreed with Nordea to acquire treasury shares in order to guarantee a holding of the shares that Lindab estimates will be awarded to participants at the end of each programme. Lindab will receive/purchase all shares acquired by Nordea. The value of the shares is initially determined and the contract requires delivery of the underlying equity instrument. The transactions are recorded in accordance with IAS 32, paragraph 23 (AG 27 a-b), meaning that a liability is recorded and a reduction of Other contributed capital in equity. The obligation is recognised as a financial liability, in accordance with IAS 39 paragraph 43 at the time of acquisition, at its fair value in the form of the present value of future payments.
None of the new or revised standards, interpretations and improvements that have been adopted by the EU and that must be applied from 1 January 2012 have had an effect on the Group.
The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act (ÅRL) and RFR 2, Accounting for legal entities, and according to the same principles that were applied to the Annual Report for 2011.
Significant estimates and assumptions are described in Note 4 in the Annual Report for 2011.
There have not been any changes made to anything that could have a material impact on the interim report.
| NOTE 3 BUSINESS | Acquisitions | |||
|---|---|---|---|---|
| COMBINATIONS | 2012 | 2011 | ||
| Acquisition Cost | 196 | 26 | ||
| Identifiable net assets | ||||
| Intangible fixed assets | 35 | 1 | ||
| Tangible fixed assets | 110 | - | ||
| Deferred tax assets | 6 | - | ||
| Stock | 68 | 4 | ||
| Current assets | 49 | 6 | ||
| Cash and cash equivalents | 26 | 0 | ||
| Deferred tax liabilities | –2 | - | ||
| Current and long-term | ||||
| liabilities | –109 | –5 | ||
| Goodwill | 139 | 20 | ||
| Non-controlling interests | –126 | - | ||
| Acquired net assets | 196 | 26 |
Acquisitions in 2012 consist of the acquisition of assets of the majority of Plannja's project sales organisation and of the company Centrum Klima S.A.
Acquisitions in 2011 consisted of Juvenco A/S and Airflux BVBA.
The acquisition of Centrum Klima was completed in three stages, with Lindab's initial acquisition of 52 percent of the company's shares completed in April. The acquisition has been recorded in accordance with the principle of full goodwill based on the fair value of net assets. In June and August, a further 45 percent and 3 percent were acquired respectively following a public offering, which was recorded as an equity transaction.
Direct transaction costs amount to SEK 7 m and has been charged to other operating expenses in the consolidated income statement.
The acquisition analysis for Centrum Klima is preliminary.
The total cash flow effect of acquisitions amounts to SEK –280 m (–26).
Lindab's operations are managed and reported by business area, which is consistent with the segmentation.
The Ventilation business area offers duct systems and accessories, as well as indoor climate solutions for ventilation, cooling and heating. The Building Components business area offers steel products and systems for roof drainage, roof and wall cladding, as well as steel profiles for wall, roof and beam constructions. The Building Systems business area offers complete preengineered steel building systems. Solutions comprise the entire outer shell with frames, walls, roofs and accessories. The operating segment Other comprises parent company functions including Group Treasury.
Information about revenues from external customers, operating profit and the pre-tax result by operating segment is shown in the tables on page 7.
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 armslength basis i.e. between parties that are independent of one another, are well informed and have an interest in the implementation of the transaction. Assets and investments are reported wherever the asset is located.
No changes have occurred in the fundamentals for segmentation or in the calculation of the segment's profit since the last Annual Report was issued.
Assets per segment that have changed by more than ten percent compared with the end of 2011 are shown below:
Lindab's related parties and the extent of transactions with related parties are described in note 29 of the 2011 Annual Report.
As of 20 August, Systemair AB (publ) is considered to be a related party. The extent of any transactions with Systemair AB (publ) has not had a significant impact on the company's position and results.
During the year, no other transactions have taken place between Lindab and related parties that have had a significant impact on the company's position and results.
| NOTE 6 SPECIFICATION OF ONE-OFF ITEMS | |
|---|---|
| --------------------------------------- | -- |
| NOTE 6 SPECIFICATION OF ONE-OFF ITEMS | Reporting period outcome | ||||||
|---|---|---|---|---|---|---|---|
| Quarter Current year |
Ventilation | Building Components |
Building Systems |
Other operations |
Total | Operating profit (EBIT) incl. one-off items |
Operating profit (EBIT) excl. one-off items |
| 1/2012 | –16 | - | –19 | –3 | –38 | –8 | 30 |
| 2/2012 | –15 | –1 | - | - | –16 | 119 | 135 |
| 3/2012 | –6 | –1 | - | - | –7 | 183 | 190 |
| Total | –37 | –2 | –19 | –3 | –61 | 294 | 355 |
| Operating profit (EBIT) incl. one-off items, acc. 2012 | 183 | 104 | 43 | –36 | 294 | ||
| Operating profit (EBIT) excl. one-off items | 220 | 106 | 62 | –33 | 355 | ||
| The previous year, acc. reporting period | |||||||
| 1/2011 | –17 | - | - | - | –17 | –24 | –7 |
| 2/2011 | - | - | - | - | - | 135 | 135 |
| 3/2011 | - | - | - | - | - | 172 | 172 |
| 4/2011 | –6 | –20 | –16 | - | –42 | 65 | 107 |
| Total | –23 | –20 | –16 | - | –59 | 348 | 407 |
| Operating profit (EBIT) incl. one-off items, acc. 2011 | 198 | 172 | 22 | –44 | 348 | ||
| Operating profit (EBIT) excl. one-off items | 221 | 192 | 38 | –44 | 407 |
1/2012 SEK –38 m relating to restructuring costs resulting from the cost saving programme that was announced on 10 January 2012.
2/2012 SEK –16 m relating to restructuring costs of SEK 9 m resulting from the cost reduction programme and the transaction costs of SEK 7 m for the acquisition of subsidiaries. 3/2012 SEK –7 m relating to the cost reduction programme.
1/2011 SEK –17 m regarding the transfer of Ventilation's production in St. Petersburg, Russia, to Tallinn, Estonia, and the change of business area manager. 4/2011 SEK –22 m relating to the cost-reduction programme and SEK –20 m relating the change in management for the Building Systems business area, and
for the write-down of assets in production units in the CEE.
The interim report has been submitted following approval by the Board of Directors.
Båstad 25 October 2012
David Brodetsky President and CEO
To the Board of Directors of Lindab International AB (publ) Corporate ID no. 556606-5446
We have performed a review of the interim report for Lindab International AB at September 30, 2012 and the nine months' period then ended. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We 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". A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing, ISA 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 the interim report, in all material aspects, is not prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the Parent company in accordance with the Swedish Annual Accounts Act.
Båstad 25 October 2012
Jan Birgerson Authorised Accountant Ernst & Young AB
Staffan Landén Authorised Accountant Ernst & Young AB
Year-End Report 2012 13 February Annual Report 2012 March/April Interim Report January–March 26 April Annual General Meeting 15 May
David Brodetsky, CEO Per Nilsson, 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 Group had sales revenue of SEK 6,878 m in 2011 and is established in 31 countries with approximately 4,300 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 2011, the Nordic market accounted for 46 percent, the CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 23 percent, Western Europe for 28 percent and other markets for 3 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm List, Mid Cap, under the ticker symbol LIAB.
Lindab develops, manufactures, markets and distributes products and system solutions 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 and environmentally-friendly design and are delivered with high levels of service. Altogether, this increases customer value.
Lindab's supply chain is characterised by a balance between centralised and decentralised functions. Steel is purchased and processed centrally. Parts of the production are highly automated (pressed ventilation and roof drainage fittings), others are located in low cost countries (mainly the Czech Republic) and some are local (e.g. bulky products). The distribution has been developed in order to be close to the customer. Sales for Ventilation and Building Components are made through more than 120 Lindab branches and more than 2,000 stock-keeping retailers, while Building Systems conducts sales through a network of more than 330 building contractors.
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 E-mail [email protected] www.lindabgroup.com
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 26 October 2012 at 07.40.
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