Financial performance

Net sales

Net sales from continuing operations


Jan–Dec 2013 Jan–Dec 2012 Change
International operations, € million 930.9 903.2 27.7
Building construction, € million 592.9 682.4 -89.5
Infrastructure construction, € million 533.4 536.6 -3.2
Technical building services, € million 221.9 229.7 -7.8
Other operations and Group eliminations, € million -61.0 -84.3
Group, total, € million 2,218.2 2,267.6 -49.4

The Group’s net sales in 2013 were roughly at the same level as in the previous year. The net sales of building construction in Finland decreased clearly from 2012. The decline in the volume is due to Lemminkäinen's decision to decrease the volume of contracting, in which profitability has been weak in recent years. Net sales in Russia were boosted by residential development and construction, and in Sweden by contracting in commercial construction.

Net sales by country in 2013 were 58% (61) from Finland, 27% (25) from Scandinavia, 7% (6) from Russia, 7% (6) from the Baltic countries and 1% (2) from other countries. Net sales by business type were 35% (35) from building construction, 54% (53) from infrastructure construction and 11% (12) from technical building services.

operating profit

Operating profit from continuing operations


Jan–Dec 2013 * Jan–Dec 2012 Change
International operations, € million -22.0 15.0 -37.0
Building construction, € million 5.0 16.9 -11.9
Infrastructure construction, € million 8.5 22.3 -13.8
Technical building services, € million -1.6 3.8 -5.4
Business segments, total, € million -10.1 58.0 -68.1
Corporate functions, € million -80.8 ** -7.7 -73.1
Group, total, € million -90.9 ** 50.4 -141.3

* Includes EUR 20.1 million write-downs, of which EUR 14.1 million from Building construction, EUR 3.0 million from Infrastructure construction, EUR 2.7 million from International operations and EUR 0.3 million from Technical building services.

** Includes EUR 65.6 million as expenses from the District Court´s decision on damages related to the asphalt cartel.

Lemminkäinen's 2013 result was clearly negative. The long winter delayed the start of the paving season and increased costs in all operating countries. The operating profit was also impaired by margin decreases from major projects in Norway, Sweden and Russia. In addition, the company expensed non-recurring items from the District Court's decision on damages related to the asphalt cartel, EUR 65.6 million, and write-downs mainly related to commercial properties, EUR 20.1 million. Also, the full year result was affected by costs related efficiency measures, approximately EUR 10 million, and costs related to the divestment of parts of telecommunications network business, approximately EUR 6 million.

In Finland, the result in building construction was supported by moderate housing unit sales as well as commercial construction in the Helsinki metropolitan area. The specialised contracting in infrastructure construction progressed well in the declining infrastructure market. The declining building construction market reduced the demand for mineral aggregates, foundation engineering and contracting in technical building services, and impaired profitability.

Operating margin from continuing operations Jan–Dec 2013 Jan–Dec 2012
International operations, % -2.4 1.7
Building construction, % 0.8 2.5
Infrastructure construction, % 1.6 4.2
Technical building services, % -0.7 1.7
Group, total, % -4.1 2.2


Order book

Order book at end of period, € million 31 Dec 2013 31 Dec 2012 Change
International operations 729.9 574.6 155.3
Building construction 544.3 526.9 17.4
Infrastructure construction 459.0 234.7 224.3
Technical building services 88.1 107.7 -19.6
Group, total 1 821,3 1 443,9 377.4
 - of which unsold 346.5 176.7

In 2013, the order book grew by one fourth and stood at EUR 1,821.3 million (1,443.9). The largest increase took place in infrastructure construction in Finland and in building construction in Russia. Significant new projects in 2013 were the contract for a 46-house residential area in Moscow (EUR 100 million), the first phase of S Group’s logistics centre (EUR 49 million) near Helsinki, two stations on the West Metro line (EUR 81 million) in Espoo, and the alliance contract for the Rantaväylä tunnel in Tampere (EUR 180 million).

Of the order book, 60% (60) originated in Finland, 20% (23) in Scandinavia, 18% (11) in Russia, and 2% (6) in other countries.