Rapid sinking of the market prices of secondary raw materials and non-recurring items burdened the result for Lassila & Tikanoja’s final quarter. In 2009 net sales and operating profit excluding non-recurring items are expected to reach the previous year's level. Dividend remains at the previous year’s level.
Lassila & Tikanoja’s net sales for the final quarter grew by 3.3 percent and totalled EUR 153.1 million (EUR 148.2 million). The operating profit decreased to EUR 4.9 million (EUR 12.1 million) and the earnings per share to EUR 0.04 (EUR 0.20).The operating profit excluding non-recurring and imputed items decreased to EUR 8.6 million (EUR 13.3 million).
Full-year net sales amounted to EUR 606.0 million (EUR 554.6 million) and operating profit excluding non-recurring and imputed items EUR 45.0 million (EUR 54.3 million). Earnings per share were EUR 1.03 (EUR 0.83).
Organic growth continued in Property and Office Support Services and Industrial Services, while the net sales of Environmental Services decreased. Waste management was able to meet its targets thanks to strong new sales and production efficiency enhancement measures, while Recycling services experienced a decline in net sales and profitability as the market prices of secondary raw materials plunged and demand shrank rapidly. International operations developed favourably.
L&T Biowatti failed to meet its targets due to production restrictions in the forest industry. The start-up of the wood pellet plant in Luumäki, Finland, and the introduction of a new forest service organisation increased costs.
In Property and Office Support Services, Finnish operations reached their target, although the result was weaker than a year earlier due to higher social security costs. Operations abroad continued to make a loss due to a fall in the net sales of the Swedish operations, while in Russia and Latvia net sales increased and operating profit showed an improvement.
In Industrial Services net sales increased in all product lines despite fluctuations in demand, and new partner agreements were signed. Costs associated with the storage of raw materials for the joint venture L&T Recoil re-refinery and the start-up of operations burdened the financial performance.
A dividend of EUR 0.55 is proposed this year as well as last year. Full-year net sales and operating profit excluding non-recurring items are expected to reach the previous year's level.