Interim report, January-June 2008: Continued good development for Gunnebo Industrier AB
• Orders received increased by 9.5% to SEK 1,135.6 million (1,037.1)
• Net sales rose by 16.3% to SEK 1,163.3 million (1,000.4)
• Operating earnings increased by 7.9% to SEK 108.8 million (100.8) for a 9.4% margin
• The profit after tax decreased by SEK 2.1 million to SEK 59.3 million (61.4)
• Earnings per share decreased by SEK 0.24 to SEK 6.76 (7.00)
• Orders received increased by 15.2% to SEK 586.4 million (509.2)
• Net sales rose by 16.9% to SEK 602.3 million (515.2)
• Operating earnings increased by 15.2% to SEK 66.8 million (58.0) for a 11.1% margin
• The profit after tax rose by SEK 4.3 million to SEK 40.6 million (36.3)
• Earnings per share increased by SEK 0.48 to SEK 4.63 (4.15)
Forecast for 2008
Gunnebo Industrier performed well in the first half of 2008, and earnings, excluding costs associated with the bidding process from Segulah Stellata, are expected to be better for the entire year than in 2007.
• Operating activities remained strong at all business areas, and demand for Gunnebo Industrier products continued to be solid
• Gunnebo Industrier, including the Fastening and Lifting business areas, is reporting record figures when it comes to operating earnings, orders received and net sales.
• Operating earnings for the first half of the year were influenced by SEK -16.2 million in exchange-rate effects, and non-recurring items associated with the bidding process from Segulah Stellata totalling SEK -8.0 million so far and a capital gain of SEK 5.3 million from divestment of the 3A Byggdelen AB subsidiary
• Acquisitions made in 2007 increased the period's operating profit by SEK 6.6 million compared with the previous year
• Higher raw material costs were largely offset by price hikes
Significant events after the end of the reporting period
Segulah Stellata Holding AB, a wholly owned subsidiary of Segulah III, L.P. and Segulah IV, L.P., issued a press release on 22 July 2008 to the effect that it is bidding on all Gunnebo Industrier shares at SEK 185 each.
The Board of Directors of Gunnebo Industrier deems the price offered to be favourable to shareholders and unanimously recommends that shareholders accept the offer.
The Board has reviewed the information in Segulah Stellata AB's bid and has nothing more to add about the impact that acceptance of the offer will have on Gunnebo Industrier or the strategic plans that Segulah Stellata has for Gunnebo Industrier and the effect that they may be expected to have on employment and the places where Gunnebo Industrier conducts its business.
Teleconference for press and analysts
Christer Lenner, CEO and President, will present the report at a teleconference/webcast at 10.00 CET on 14 August. The presentation will be in English. To participate in the teleconference, dial 08 5051 3785 from Sweden and +44 20 7138 0826 from anywhere else. Specify the following code: 3149341. To follow the webcast, go to www.gunneboindustries.com
For full report open enclosed PDF