29.7.2008, 8:00
Lassila & Tikanoja’s performance was burdened by a larger rise than expected in the general cost level, particularly in the prices of fuels. 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.
L&T’s net sales for the second quarter grew by 11.2 per cent and stood at EUR 154.4 million (EUR 138.8 million). The operating profit was EUR 10.2 million (EUR 12.0 million), and earnings per share EUR 0.17 (0.20). The operating profit excluding non-recurring and imputed items went down to EUR 11.3 million (EUR 13.8 million). For the first six months, the operating profit excluding non-recurring and imputed items was EUR 20.1 million (EUR 24.1 million) and earnings per share were EUR 0.68 (EUR 0.35).
Organic growth continued in the second quarter. Financial performance was burdened by a larger rise than expected in the general cost level, particularly the exceptionally sharp rise in the prices of transport fuels, which can only be transferred into sales prices after a delay.
L&T will continue increasing the waste material treatment capacity and the recovery rate. The JV L&T Recoil’s re-refinery for used lubricating oil is expected to be completed at the end of the year. L&T Biowatti will start the production of wood pellets during the current year.
The demand outlook in Lassila & Tikanoja’s markets remain mostly good but the adaptation of the costs and transferring the cost increases to sales prices will impose challenges. 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. Earnings will, however, improve due to a non-recurring capital gain.