Economic uncertainty may result in significant changes in the secondary raw material markets for Environmental Services and the demand for Facility Services and Industrial Services.
Low prices for fossil fuels may affect the demand of the recovered and renewable fuels produced by the company.
The company began the deployment of a new ERP system in 2016 and will continue the deployment process in 2017. The deployment of the new system may lead to temporary overlapping costs arising from changes in the operating model, which can have a negative effect on the company’s result.
Outlook for 2017
L&T’s full-year net sales and operating profit in 2017 are expected to remain at the 2016 level.