Improved fortunes for Lemminkäinen

Finnish contractor Lemminkäinen saw net sales grow 5% for the third quarter ended 30 September, 2013, achieving €751 million versus €716.6 million in the third quarter of 2012.

New orders totalled €603.5 million.

The Finnish firm has worked on streamlining operations throughout 2013, and has seen its efforts result in improved operating profit and margin, which stood at €61.8 million, up from €40.4 million in 2013, and an improved margin of 8.2% against 2012’s 5.6%. Pre-tax profit was €54 million, up from €36.6 million during the same period in 2012.

Timo Kohtamäki, president and CEO, said, “Our third quarter result reached an all-time high level, and also our cash flow was strong. Infrastructure construction in particular did a fine job in improving its results and offsetting the impact of the delayed start to the season.

“In building construction in Finland, profitability also improved nicely from the comparison period, thanks to steady housing sales.”

According to Kohtamäki, the market situation in Finland continues to be challenging. However, in Sweden, Norway and Russia, the market situation is brighter. “Our net sales have grown most strongly in these markets. Results have also developed in the right direction,” he added.

Year-to-date figures for the period 1 January, 2013, to 30 September, 2013, saw net sales remain steady at €1.6 billion, while order backlog rose to €2 billion, up from €1.6 billion for the same period in 2012.

Looking ahead, Lemminkäinen reiterated the profit guidance for the current year that it published on 8 August, 2013. Net sales in 2013 will be on a par with last year’s figure of €2.2 billion, while operating profit is expected to fall short of 2012’s €50 million.