Net sales and profit ¹⁾

January – September 2017

Group operative net sales for the period January-September 2017 amounted to SEK 35,473 million (32,694), which was an increase of nine percent. After adjustments for acquired and divested units net sales increased by eight percent. Adjustments in housing reporting affected net sales by SEK 61 million (-236). Group net sales for the period January-September 2017 increased to SEK 35,534 million (32,458).

Net sales have increased in every business area largely due to the favorable construction and civil engineering market. Net sales grew by eleven percent in business area Construction and has increased in all the business area’s regions. Net sales increased by eight percent in business area Civil Engineering generated by greater activity in Local market and Infrastructure. Business area Industry showed an increase in net sales of four percent, with increases in all product areas except Transport and Machine, which had unchanged sales. Net sales in business area Project Development were also higher, with an increase in Housing Development by 30 percent while Property Development had lower net sales. During the first quarter Property Development divested a number of assets in Arenastaden and Ulriksdal in Solna to Fabege, which affected net sales by SEK 577 million. During the second quarter 2016 partial sales of property in Hyllie, Malmö were carried out, worth SEK 777 million.

Of the period’s net sales SEK 6,712 million (5,456) were attributable to sales and production outside Sweden.

Operative operating profit for the period January-September 2017 amounted to SEK 1,651 million (1,434) and the operative operating margin improved to 4.7 percent (4.4). The operative operating margin for the latest rolling 12 month period was also 4.7 percent compared to 4.5 percent for the entire year 2016.

The margin in business area Construction was 2.2 percent compared to 2.3 percent for the same period last year. The margin in business area Civil Engineering was 3.0 percent (3.2). Business area Industry showed a higher margin of 6.2 percent (6.0). Operating profit in business area Project Development improved during the period, both in Housing Development and Property Development. The margin in Housing Development improved to 8.7 percent (7.4). The result in Property Development included capital gains of SEK 75 million from the divestiture in the first quarter of joint venture companies with development properties in Skåne. The transactions regarding Arenastaden and Ulriksdal, which were carried out during the first quarter had no net effect on the result since the divestitures in Ulriksdal had a positive effect on operating profit by SEK 180 million and the sales of assets in Arenastaden had a negative effect of SEK 180 million. The second quarter 2016 included an effect on operating profit of SEK 104 million from the partial sales of property in Hyllie.

Eliminations and reversal of internal profit in our own projects has affected the result net by SEK -18 million (-25). Elimination is reversed in connection with the external divestment of a project. Adjustments in housing reporting affected operating profit by SEK 12 million (-9). Operating profit for the period January-September 2017 was SEK 1,663 million (1,425) and the operating margin amounted to 4.7 percent (4.4).

Depreciation and write-downs for the period were SEK -700 million (-630).

Net financial items amounted to SEK -32 million (-43) of which net interest improved to SEK -44 million (-60). Net financial items include dividends from Lemminkäinen Oyj of SEK 13 million (-).

Pre-tax profit was SEK 1,631 million (1,382).

Profit for the period improved to SEK 1,386 million (1,166).

Seasonal variations

Group operations, particularly in Industry and Civil Engineering, are affected by fluctuations that come with the cold weather during the winter half of the year. Normally the first quarter is weaker than the rest of the year.