05.02.2008, 08:05
Growth in Lassila & Tikanoja’s net sales continued in the final quarter. Comparable operating profit excluding non-recurring and imputed items amounted to EUR 13.3 million. A dividend of EUR 0.55 per share is proposed. In 2008, growth in net sales is estimated to exceed 10% and earnings are estimated to improve clearly.
Net sales for the final quarter increased by 28.4% to EUR 148.2 million (EUR 115.4 million). The operating profit grew to EUR 12.1 million (EUR 10.3m) and earnings per share to EUR 0.20 (EUR 0.18). The fourth-quarter result was boosted by strong organic growth, successful management of production and lower than expected social security costs. The earnings were burdened by non-recurring expenses and imputed changes in the fair values of oil derivatives, totalling EUR 1.2 million. In the comparison period, non-recurring income of EUR 1.0 million was recognised.
The full-year net sales increased to EUR 554.6 million (EUR 436.0 million). Earnings per share were EUR 0.83, being a year earlier EUR 0.90. Comparable operating profit excluding non-recurring items amounted to EUR 54,3 million (EUR 47.3 million). The Board proposes a dividend of EUR 0.55 per share.
Organic growth exceeded market growth, and the company’s market position strengthened. This was primarily attributable to well-functioning product development and sales operations. The profitability of waste management improved, and degrees of utilisation of the extensions to recycling capacity quickly rose to the planned levels. The net sales and earnings of L&T Biowatti developed almost as planned in spite of the mild start to the winter. New outsourcing contracts were signed particularly with the forest industry, and contracts with all major industrial customers were successfully renewed for periods of several years.
The prospects for Lassila & Tikanoja’s markets remain mostly good. Organic growth is expected to remain strong. Full-year net sales are expected to increase more than 10%, and earnings are expected to improve clearly. Also the operating profit excluding non-recurring and imputed items is expected to improve. Actions of EU climate policy will have a positive effect on the demand for L&T’s renewable fuels but this will be allocated over several years.