Lemminkäinen reports loss for 2013

07 February 2014

Timo Kohtamäki, president and CEO, Lemminkäinen

Finnish contractor Lemminkäinen reported an operating loss for the final quarter and year end of 2013, due in part to non-recurring items including €65.6 million paid out in damages related to the asphalt cartel, and a write-down of €20.1 million on commercial properties.

Operating profit, excluding non-recurring items, stood at a loss of €16.3 million compared to a profit of €24 million for the same quarter of 2012.

Net sales in the three months from October to December, 2013, totalled €639.5 million, down slightly on 2012’s sales figure of €668.6 million.

Lemminkäinen secured new orders worth €390.7 million for the quarter, down from €528.5 in the final three months of 2012.

Full year results followed a similar vein with net sales for the year at €2.22 billion, down from €2.27 billion in 2012.

However, the order book at year-end was up at €1.82 billion from 2012’s €1.44 billion.

Operating profit for the year, excluding non-recurring items, showed a loss of €5.2 million, down from 2012’s profit of €50.4 million.

President and CEO Timo Kohtamäki said 2013 had been a difficult year for the company.

"In the beginning of the year, the paving season was delayed due to the prolonged winter, and in the end of the year we recorded margin decreases from major projects in Norway, Sweden and Russia. In Norway, several efficiency improvement measures were carried out during the year, but the operations in Norway remained unprofitable.

"Our efficiency improvement programme, launched in August, has proceeded as planned - our cost structure is lighter and better adjusted to seasonal variations”

Lemminkäinen said it would focus on developing operational efficiency, improving profitability and strengthening its equity ratio in 2014.

“We are currently strengthening our resources in demanding infrastructure projects in Scandinavia. In Russia, we have some 900 apartments under construction. The current order book in Finland creates a solid platform to develop our business further in 2014,” Kohtamäki added.