Lemminkäinen posts stronger balance sheet

By Sarah Ann McCay07 February 2013

Lemminkäinen president and CEO, Timo Kohtamäki

Lemminkäinen president and CEO, Timo Kohtamäki

Finnish firm Lemminkäinen saw net sales rise 4% in 2012 to total €2.26 billion, while its order book grew by 3% to stand at €1.4 billion.

Efficiency was a big focus for Lemminkäinen in 2012, and the company saw its operating profit improve by 14% to €50 million and its operating margin rise 2.2%.

Fourth quarter figures showed equally strong results, with net sales up 5% to €668.6 million while operating profit tripled to €23.7 million – again said to be as a result of more streamlined operations.

Timo Kohtamäki, president and CEO, said, "On the whole, 2012 met our expectations. The efficiency programme launched in late 2011 had a positive impact on the result of all our businesses in Finland. Especially, the Finnish infrastructure construction and commercial construction in the Helsinki Metropolitan Area improved their competitiveness in a challenging market situation.

"Our housing sales in Finland remained at a good level throughout the year. Also, the demand for our repair and maintenance services for technical building systems developed nicely.”

In Russia, the firm saw brisk infrastructure and industrial construction make up for a delay in residential construction. Sweden saw strong growth in infrastructure construction after a few quiet years. However, Norway saw infrastructure business tail off.

Lemminkäinen’s market outlook points to continued growth in the construction sector in Russia, while infrastructure developments in Scandinavia also present opportunity.

In its domestic market of Finland, Lemminkäinen remained cautious, with levels expected to remain stable or fall slightly.

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