Housing slowdown and paving costs hit Lemminkäinen profits

Lemminkäinen's sales for the first half of the year were up +24% on 2007 at € 1,09 billion. However, the company saw its profits slide compared to the first six months of 2007, with operating profit down -30% from € 45,3 million to € 31,8 million.

Commenting on its slide in earnings, the company said, "Profits weakened significantly in Lemminkäinen's building construction and infrastructure construction business sectors. On the other hand, there was a marked improvement in the profits of the company's technical building services business sector. The profitability of the building products business sector remained unchanged."

It went on to say that profits were also being affected by input costs, particularly in its paving business, while selling times for houses were lengthening.

As a result, the company expects revenues for the full year to be higher than 2007, but profits to be about level. It added that its order book at the end of June was +5% higher than a year previously.