New CEO Pekka Ojanpää has got off to a decent start at environmental services company Lassila & Tikanoja (HEL: LAT1V). While net sales growth to 169.7 million on Q2 2012 isn’t that stellar and clearly below long-term targets and operating profit of 12.1 million excluding one-off items while much better, can still be improved further, earnings per share items improved to 0.24 Euros per share mainly on measures undertaken to address profitability and a one-off gain. Profitability improved due to volume growth in waste management services and good performance in shutdown-related work in the industry sector. Cleaning and Office Support Services is hardly making a profit as competitive situation is tough and Swedish operations are loss-making and Property Maintenance returns are nothing to write home about either.
Ventures outside the realm of the core business initiated under the previous management have almost all been failures. Now those are being gradually cut off or trimmed down. Oil re-refinery business is being rearranged. Most of the holdings in joint venture L&T Recoil are being divested with a capital gain of 4.2 million shown in Q2 2012 accounts. At the same time a cost of 2 million was recorded in financial expenses related to interest receivable from subordinated loans granted to the joint venture. Losses in Renewable Energy Sources halved. The company maintains full-year guidance, with net sales expected to remain at 2011 level and operating profit excluding non-recurring items to be on par or slightly better than last year (652.1 million and 45.5 million).
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