Forecasts and forward-looking statements are disclosed in the financial statement release and interim reports. L&T discloses forecasts for the current financial year as a whole only.
Prospects for the rest of the year, Q2 Interim Report, 27 July 2010
In the Environmental Services division, the market outlook for waste management and recycling services for the rest of the year has improved. Waste volumes are expected to grow. The demand for secondary raw materials and the market prices are expected to recover moderately. In light of the rising operating rates in the industry, it is fair to assume that the demand for hazardous waste and process cleaning services will grow.
An approximately one-month maintenance shut-down at the joint venture L&T Recoil’s plant scheduled to start in August will improve the plant’s reliability and raise the degree of processing. The plant was not yet in operation in the second half last year, and the joint venture recorded significant losses.
The markets for Property and Office Support Services are expected to remain unchanged towards the year-end. However, in the current economic conditions the competitive situation will remain fierce.
The demand for L&T Biowatti’s wood-based fuels is estimated to remain weak. Furthermore, low prices of emission rights and fossil fuels will undermine the competitiveness of renewable fuels. While the planned government support measures to increase the use of renewable fuels are expected to have a positive impact in the long term, they will not affect this year's performance.
Full-year net sales and operating profit excluding non-recurring items are expected to remain at the same level as in 2009.
Prospects for the rest of the year, Q1 Interim Report, 29 April 2010
The outlook for the Environmental Services division’s waste management services is stable. In the current economic conditions, waste material transport volumes are expected to remain at the present level while rising operating rates in the industry are expected to boost demand for hazardous waste and process cleaning services. In the recycling business, secondary raw material prices are expected to normalise at a moderate pace. Production operations at L&T Recoil's plant are expected to stabilise at the intended level.
The markets for Property and Office Support Services are expected to remain unchanged. The current economic conditions will presumably increase competitive bidding and reduce orders for additional services.
Demand for wood-based fuels is anticipated to be lower than a year earlier. Furthermore, low prices of emission rights and fossil fuels will undermine the competitiveness of renewable fuels. While planned government support measures to increase the use of renewable fuels will have a positive impact in the long term, it will not affect this year’s performance.
Full-year net sales and operating profit excluding non-recurring items are expected to remain at the same level as in 2009.
Prospects for the year 2010, Financial statements release 2009, 10 February 2010
In the Environmental Services division, waste material transport and recycling volumes are expected to remain unchanged. The demand and market prices of secondary raw materials are expected to recover slowly. The current operating rates in the industry will result in low hazardous waste volumes and demand for maintenance services. Production at L&T Recoil’s re-refinery continues to be unstable. Its operating rate will have a major impact on the division’s profitability.
The market for Property and Office Support Services is expected to remain unchanged or weaken. Customers must follow tight cost control, which is assumed to increase competitive bidding and reduce orders for additional services.
The demand for L&T Biowatti’s wood-based fuels is expected to remain moderate due to low operating rates in the industry and the low wholesale price of electricity. Furthermore, the low price of emission rights will undermine the competitiveness of wood-based fuels.
Net sales and operating profit excluding non-recurring items in 2010 are expected to remain at the 2009 level.
Prospects for the rest of the year, Q3 Interim Report, 27 October 2009
In the Environmental Services division, waste material collection and recycling volumes are expected to remain stable towards the year-end. The demand and market prices of secondary raw materials are expected to recover at a moderate rate.
Demand for L&T Biowatti's wood-based fuels will grow as the heating season begins, but the low operating rates in the industry and the low wholesale price of electricity translate into weaker demand than in the same period a year earlier. Furthermore, the low price of emission rights will undermine the competitiveness of wood-based fuels. L&T Biowatti’s operations will be adapted to the weaker demand.
In the Property and Office Support Services, outlook for the remainder of the year is stable. The customers’ tight economies have resulted in increased competitive bidding and will probably reduce orders for additional services.
Low industrial operating rates will keep hazardous waste volumes low for the rest of the year and reduce demand for maintenance work. Measures to adjust production to the lower demand in the winter season will continue.
Full-year net sales will fall slightly from the previous year. Meanwhile, operating profit excluding non-recurring and imputed items will show slight improvement.
Prospects have been revised from the previous interim report, which stated as follows: “Full-year net sales are expected to reach the previous year’s level and full-year operating profit, excluding non-recurring and imputed items, is expected to reach the same level or show slight improvement. This requires that production operations will be launched at the L&T Recoil plant in the early autumn.“
Prospects for the rest of the year, Q2 Interim Report, 28 July 2009
Although the markets in which L&T primarily operates are not highly cyclical, the prolonged economic recession is reflecting on the demand for L&T’s services.
In the Environmental Services division, waste material transport and recycling volumes are expected to decline further. Similarly, the market prices of secondary raw materials are expected to remain low and demand to be weak. Operating rates in the forest industry are likely to stay low, which will affect L&T Biowatti’s raw material procurement. At the same time, low fossil fuel prices and the reduction in the price of emission rights will restrict demand for wood-based biofuel.
Fierce competition and increased competitive bidding is expected to continue to affect Property and Office Support Services. The economic uncertainty will hold back new and additional sales, and smaller scopes of services are to be expected when contracts are renewed.
The Industrial Services division’s market conditions are expected to remain challenging towards the year-end. Industrial order books continue to be exceptionally small, which is likely to translate into further capacity cuts and production restrictions for customers. Lower operating rates will reduce hazardous waste volumes and rapid fluctuations in demand will make production adjustment measures more difficult.
Full-year net sales are expected to reach the previous year’s level and full-year operating profit, excluding non-recurring and imputed items, is expected to reach the same level or show slight improvement. This requires that production operations will be launched at the L&T Recoil plant in the early autumn.
Prospects have been revised from the previous interim report, which stated as follows: Full-year net sales and operating profit excluding non-recurring and imputed items are expected to reach the previous year’s level. This requires success in the adaptation of operations and costs as well as the start-up of the operation of L&T Recoil according to plan.
Prospects, Q1 Interim Report, 5 May 2009
Although the markets in which L&T primarily operates are low-cyclical, the economic recession is impacting on demand for L&T’s services.
Waste material transport and recycling volumes are expected to decline further towards the year-end. Meanwhile, secondary raw materials are expected to be affected by weak demand and low market prices over the next few months. Operating rates in the forest industry continue to be low, which will affect L&T Biowatti’s raw material procurement. At the same time, low fossil fuel prices will restrict wood-based biofuel demand and pricing.
Property and Office Support Services will continue to experience fierce competition and increased competitive bidding. The economic uncertainty will hold back new and additional sales, and the number of services will be reduced when contracts are renewed.
The Industrial Services division’s market conditions are expected to remain challenging throughout the year. However, as in the previous years, demand is expected to pick up after the first quarter. Lower operating rates in the industry will reduce hazardous waste volumes and rapid fluctuations in demand will make the identification of the correct production adjustment measures difficult.
Full-year net sales and operating profit excluding non-recurring and imputed items are expected to reach the previous year’s level. This requires success in the adaptation of operations and costs as well as the start-up of the operation of L&T Recoil according to plan.
Prospects, Financial Statements Release, 10 February 2009
A recession is expected in the national economies of all countries in which L&T operates. The company primarily operates in low-cyclical markets.
In 2009, L&T will focus on improving profitability. In addition to the launched measures, a productivity enhancement programme is being planned to adapt operations and cost development to themarket conditions. Investments will be much lower than last year.
Full-year net sales and operating profit excluding non-recurring items are expected to reach the previous year's level. This requires success in the adaptation of operations and costs.