Lassila & Tikanoja’s strong organic growth continued. However, the increase in production costs and the reduction in recycling volumes hampered financial performance. Full-year net sales are expected to increase by approximately 10 per cent, and the operating profit excluding non-recurring and imputed items is expected to be somewhat lower than in the previous year.
L&T’s net sales for the third quarter grew by 9.1 per cent and stood at EUR 151.2 million (EUR 138.6 million). The operating profit was EUR 17.6 million (EUR 15.5 million), and earnings per share EUR 0.31 (EUR 0.28). The operating profit excluding non-recurring and imputed items went down to EUR 16.3 million (EUR 16.6 million). The nine-month net sales were EUR 452.9 million (EUR 406.4 million) and the operating profit excluding non-recurring and imputed items was EUR 36.4 million (EUR 41.0 million). Earnings per share were EUR 0.99 (EUR 0.63).
In the third quarter, growth in net sales continued and was entirely organic. The increase in production costs and the reduction in transport and recycling volumes of Environmental Services hampered financial performance. Also the sales prices of recycled raw materials decreased. However, the performance of international operations within Environmental Services developed favourably thanks to production efficiency measures.
L&T Biowatti reached its targets thanks to an increase in the demand for biofuels although production limitations in the mechanical forest industry hampered the procurement of raw material.
The performance of Property and Office Support Services improved as a result of profit improvement in property maintenance and smaller losses from international operations. Net sales of Industrial Services increased, but rapid fluctuations in demand continued, which was very challenging from the production adjustment perspective.
Full-year net sales are expected to increase by approximately 10 per cent. The operating profit excluding non-recurring and imputed items is expected to be somewhat lower than in the previous year. Due to the capital gain from Ekokem shares, earnings will exceed those for the previous year.