Lehto Group Plc: Lehto declines it’s estimate of net sales and operating profit for 2019
Lehto Group Oyj
Stock exchange release
1 November, 2019 at 6.45 p.m. (EET)
Lehto estimates that the Group’s net sales in 2019 will be lower than in 2018 (2018 net sales EUR 721.5 million). Although the company estimates its fourth-quarter operating profit to be positive, the second-half operating profit is expected to be negative due to the third-quarter operating loss (operating loss January-June 2019 EUR -27.5 million).
The main factors affecting net sales and operating profit for the second half of the year are the continuing losses of complete renovation projects in the third quarter, the delayed completion of some housing projects for the year 2020 and the decline in the average margin of housing projects.
The main risks related to the development of net sales and operating profit are increased completion costs of projects, delays in completion of some housing projects for the year 2020, weakening of sales in Housing sector and declining sales prices, and possible penalties for delayed complete renovation projects.
The previous outlook, published in half-year report, on 15 August 2019 was as follows:
Lehto estimates that the Group’s net sales for 2019 will be at level of 2018 or lower than on year 2018 (EUR 721.5 million in 2018) and that full year 2019 operating profit will be negative due to strongly negative first half of 2019 (operating profit EUR 37.2 million i.e. 5.2% of net sales in 2018).
Hannu Lehto, CEO, tel. +358 500 280 448
Veli-Pekka Paloranta, CFO, tel. +358 400 944 074