Finland’s Lemminkäinen's result in Q1 of 2013

Finnish construction and infrastructure company 4438 Lemminkäinen's net sales fell to €306.4 million the first quarter of 2013 from 315.4 million in the first quarter of 2012. Operating loss totalled €38.2 million compared to a loss of €21.6 million in the corresponding period in 2012.

Operating margin was a negative 12.5%, compared to a negative 6.9%. The order book at the end of March 2013 stood at the same level as in the previous year, at €1.626.2 billion.

According to CEO Timo Kohtamäki, the first quarter was a disappointment. The clear decrease in operating profit was due to the late start of the paving season in Northern Europe; the slow permit process in St Petersburg in Russia and unfavourable currency exchange rates.

Lemminkäinen updates its guidance and expects net sales and operating profit for 2013 to remain at the 2012 level. This estimate is based on the assumption that Lemminkäinen's efficiency programme will continue to progress as planned, and that the general market situation in construction will not significantly weaken from early 2013.