Near-term uncertainties

Financial Statements Release 2016, 1 February 2017

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.

Fluctuations in the prices of 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.

More detailed information on Lassila & Tikanoja’s risks and risk management is available in the 2016 Annual Report, which will be published on 23 February, and in the Report of the Board of Directors and the consolidated financial statements.​


Q3 Interim report, 26 October 2016

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 is preparing to deploy new ERP and financial management systems in late 2016 and in
2017. The deployment of the new systems may lead to temporary overlapping costs arising from
changes in the operating model, which can have a negative effect on the company’s result.

Half-year report, 3 August 2016

 
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 is preparing to deploy new ERP and financial management systems in late 2016 and early 2017. The deployment of the new systems may lead to temporary overlapping costs arising from changes in the operating model, which can have a negative effect on the company’s result.

Q1 Interim report, 27 April 2016

 
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 is preparing to deploy new ERP and financial management systems in late 2016 and early 2017. The deployment of the new systems may lead to temporary overlapping costs arising from changes in the operating model, which can have a negative effect on the company’s result.

Financial Statements Release 2015, 3 February 2016

Low prices for fossil fuels may affect the demand of the recovered and renewable fuels produced by the company.
 

Q3 Interim report, 28 October 2015

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.

Uncertainties related to government subsidies for renewable fuels and to the continuity of such subsidies may affect demand for the services of Renewable Energy Sources. In addition, low prices for fossil fuels may affect the demand of the recovered and renewable fuels produced by the company.

 

Q2 Interim report, 5 August 2015

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.

Uncertainties related to government subsidies for renewable fuels and to the continuity of such subsidies may affect demand for the services of Renewable Energy Sources. In addition, low prices for fossil fuels may affect the demand of the recovered and renewable fuels produced by the company.

 

Q1 Interim report, 29 April 2015

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.

Uncertainties related to government subsidies for renewable fuels and to the continuity of such subsidies may affect demand for the services of Renewable Energy Sources. In addition, low prices for fossil fuels may affect the demand of the recovered and renewable fuels produced by the company.

 

Financial Statements Release 2014, 4 February 2015

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.

Uncertainties related to government subsidies for renewable fuels and to the continuity of such subsidies may affect demand for the services of Renewable Energy Sources.

 

Q3 Interim report, 23 October 2014

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.

Uncertainties related to government subsidies for renewable fuels and to the continuity of such subsidies may affect demand for the services of Renewable Energy Sources.

During the last quarter of the year 2014, the company will review its inventory valuation model for Renewable Energy Sources in relation to system changes. Potential changes to the valuation model may affect inventory values and the company’s result.

 

Q2 Interim report, 6 August 2014

Economic uncertainty may result in major changes in Environmental Services’ secondary raw material markets and in demand for Facility Services and Industrial Services.

Uncertainties associated with government subsidies for renewable fuels and with the continuity of such subsidies may affect demand for the services of Renewable Energy Sources.

 

Q1 Interim report, 25 April 2014

Economic uncertainty may result in major changes in Environmental Services’ secondary raw material markets and in demand for Industrial Services.

Uncertainties associated with government subsidies for renewable fuels and with the continuity of such subsidies may affect demand for the services of Renewable Energy Sources.

 

Financial Statements Release 2013, 5 February 2014

Economic uncertainty may cause major changes in the Environmental Services division’s secondary raw material markets and in the demand for Industrial Services.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

L&T's total risks in the EcoStream Group amount to EUR 23.3 million, and if the risks materialised, there would be an impact on cash flow of approximately EUR 16.4 million. The EUR 16.4 million guarantee given by L&T to other financiers on L&T Recoil Oy's bank loans is still in effect. Furthermore, L&T has outstanding receivables from the EcoStream Group totalling EUR 3.3 million, and holds EcoStream Oy shares worth EUR 3.6 million.

 

Q3 Interim report, 23 October 2013

Economic uncertainty may cause major changes in the Environmental Services division’s secondary raw material markets and in the Industrial Services division’s demand.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

L&T's liabilities in EcoStream Group amount to EUR 23.3 million, of which EUR 16.4 million have an impact on cash flow. The EUR 16.4 million guarantee given by L&T to other financiers on L&T Recoil Oy's bank loans is still in effect. Furthermore, L&T has outstanding receivables from the EcoStream Group totalling EUR 3.3 million, and holds EcoStream Oy shares worth EUR 3.6 million.

 

Q2 Interim report, 6 August 2013

Economic uncertainty may cause major changes in the Environmental Services division’s secondary raw material markets and in the Industrial Services division’s demand.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

 

Q1 Interim report, 24 April 2013

Economic uncertainty may cause major changes in the Environmental Services division’s secondary raw material markets and in the Industrial Services division’s demand.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

 

Financial Statements Release, 1 February 2013

Economic uncertainty may cause major changes in the Environmental Services division’s secondary raw material markets and in industrial customer relationships.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

 

Q3 Interim report, 23 October 2012

Economic uncertainty may cause radical changes in the Environmental Services division’s secondary raw material markets and in industrial customer relationships.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

 

Q2 Interim report, 24 July 2012

Economic uncertainty may cause radical changes in the Environmental Services division’s secondary raw material markets and in industrial customer relationships.

Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.

 

Q1 Interim report, 26 April 2012

Economic uncertainty may cause remarkable changes in the Environmental Services division’s secondary raw material markets and in industrial customer relationships.

Any disturbances in L&T Recoil plant’s production could have a negative effect on the Environmental Services division’s performance. End-product and raw material price fluctuations, as well as the plant's supply volumes, have a major effect on L&T Recoil’s performance.

Uncertainties associated with the government subsidies for renewable fuels and their continuity could affect demand for the Renewable Energy Sources division's services.

 

Financial Statements Release, 2 February 2012

Economic uncertainty may cause remarkable changes in the Environmental Services division’s secondary raw material markets and in industrial customer relationships.

Any disturbances in L&T Recoil plant’s production could have a negative effect on the Environmental Services division’s performance. End-product and raw material price fluctuations, as well as the plant's supply volumes, have a major effect on L&T Recoil’s performance.

Uncertainties associated with the government subsidies for renewable fuels and their continuity could affect demand for the Renewable Energy Sources division's services.

 

Q3 Interim report, 25 October 2011

Economic uncertainty may cause radical price changes in the Environmental Services division’s secondary raw material markets.

Any disturbances in L&T Recoil plant’s production could have a negative effect on the Environmental Services division’s performance. End-product and raw material price fluctuations would also have a major effect on L&T Recoil’s performance.

The situation regarding government subsidies to renewable fuels continues to be unclear. Changes in the prices of emission rights will affect the competitiveness of L&T Biowatti's wood-based fuels in heat generation.

 

Q2 Interim report, 26 July 2011

General economic uncertainty may cause radical price changes in the secondary raw material markets of the Environmental Services division.

Succeeding in the integration of the acquisitions concluded in the second quarter will affect the performance in the second half.

L&T Recoil’s production has not fully stabilised, and any further disturbances in the plant’s production could have a negative effect on the Environmental Services division’s performance. End-product and raw material price fluctuations would have a major effect on L&T Recoil’s performance.

The government support for renewable fuels will have a positive effect on the demand for wood-based fuels in the future, but with some delay. Changes in the prices of emission rights will affect the competitiveness of L&T Biowatti's wood-based fuels.

 

Q1 Interim report, 27 April 2011

L&T Recoil’s production has not yet fully stabilised, and any further disturbances in the plant’s production could have a negative effect on the Environmental Services division’s performance. End-product and raw material price fluctuations would have a major effect on L&T Recoil’s performance.

The government support for renewable fuels will have a positive effect on the demand for wood-based fuels in the future, but with some delay. Changes in the prices of emission rights will affect the competitiveness of L&T Biowatti's wood-based fuels.

 

Financial Statements Release, 3 February 2011

If the operating rate target set for L&T Recoil’s production is not reached, this will have a negative impact on the Environmental Services division’s performance. End-product price fluctuations and changes in the availability of raw material would have a major effect on L&T Recoil’s performance.

The planned government support for renewable fuels should have a positive effect on the demand for wood based fuels but with some delay, and with its extend depending on these measures’ scope and level. Sustained low prices of emission rights may adversely affect the competitiveness of L&T Biowatti's wood based fuels.

 

Q3 Interim report, 26 October 2010

If the operating rate target set for L&T Recoil’s production is not reached, this will have a negative impact on the Environmental Services division’s performance. Its performance could also be adversely affected by the potential fall in the price of crude oil, since the price of base oil follows crude oil price developments with a slight delay.

Low prices of fossil fuels such as coal, oil and peat as well as the low prices of emission rights undermine the competitiveness of L&T Biowatti's wood-based fuels. The scope and level of the planned government support measures for renewable fuels will have a considerable effect on the demand for wood-based fuels in the future.

Intensifying competition and changes in legislation in Latvia may prove detrimental to the profitability of the waste management business.

 

Q2 Interim report, 27 July 2010

In Property and Office Support Services, the number of commissioned assignments may fall despite the economic recovery. Rapid fluctuations in demand for services purchased by the industry may hamper the planning and implementation of work.

If the operating rate target set for L&T Recoil’s production is not reached, this will have a negative impact on the Environmental Services division’s performance. Its performance could also be adversely affected by the potential fall in the price of crude oil, since the price of base oil follows crude oil price developments with a slight delay.

Low prices of fossil fuels such as coal, oil and peat undermines the competitiveness of L&T Biowatti’s wood-based fuels. Similarly, the low wholesale price of electricity and low price of emission rights will weaken demand.

Intensifying competition and changes in legislation in Latvia may prove detrimental to the profitability of the waste management business.

 

Q1 Interim report, 29 April 2010

In Property and Office Support Services, the number of commissioned assignments may fall despite the economic recovery. Rapid fluctuations in demand for services purchased by the industry may hamper the planning and implementation of work.

If the operating rate target set for L&T Recoil’s production is not reached, this will have a negative impact on the Environmental Services division’s performance. Its performance could also be adversely affected by the potential fall in the price of crude oil, since the price of base oil follows crude oil price developments with a slight delay.

Low prices of fossil fuels such as coal, oil and peat may undermine the competitiveness of L&T Biowatti’s wood-based fuels. The low wholesale price of electricity and low price of emission rights will weaken demand.

Intensifying competition and changes in legislation in Latvia may prove detrimental to the profitability of the waste management business.

 

Financial Statements Release, 10 February 2010

Sustained economic uncertainty may reduce transport and recycling volumes and the number of assignments. The market price and demand instability of secondary raw materials could have a negative effect on the profitability of recycling services. Rapid fluctuations in demand for services purchased by the industry and the low operating rates in the industry may hamper the planning and implementation of work.

If the operating rate target set for L&T Recoil’s production is not reached, this will have a negative impact on the Environmental Services division’s performance. Performance will also be adversely affected by the potential fall in the price of crude oil because the price of base oil follows crude oil price developments with a slight delay.

Low prices of fossil fuels such as coal, oil and peat may undermine the competitiveness of L&T Biowatti’s wood-based fuels. Similarly, the low wholesale price of electricity and low price of emission rights will weaken demand.

The intensifying competition environment and changes in legislation in Latvia may prove detrimental to the profitability of the waste management business.