Interim report January-June 2011

Good margin in weaker consumer market

April – June 2011

• Net sales amounted to SEK 1,351 million (1,384), which adjusted for currency effects represents an increase of 1 percent
• Operating profit (EBITA) amounted to SEK 151 million (165)
• The operating margin (EBITA) amounted to 11.2 percent (11.9)
• Adjusted for items affecting comparability, the operating margin (EBITA) was 12.0 percent (11.9)
• Profit after tax was SEK 83 million (99)
• Cash flow from operating activities was SEK 120 million (106)
• Inwido signed an agreement to acquire Pro Tec Vinduer A/S in Denmark

  January – June 2011

• Net sales amounted to SEK 2,350 million (2,482), which adjusted for currency effects represents a decline of 1 percent
• Operating profit (EBITA) amounted to SEK 182 million (194)
• The operating margin (EBITA) amounted to 7.8 percent (7.8)
• Adjusted for items affecting comparability, the operating margin (EBITA) was 8.3 percent (8.7)
• Profit after tax was SEK 91 million (100)
• Cash flow from operating activities was negative in the amount of SEK 52 million (112)
• Net debt amounted to SEK 1,622 million at 30 June 2011, SEK 414 million lower compared with the year-earlier period

CEO Håkan Jeppsson comments:
“As we have previously stated, the beginning of 2011 was weaker than expected. With another quarter now having passed, we can note that sales to the consumer market were relatively good in the first half of the quarter but then weakened again. At the same time, sales to the industrial market continued to rise. Despite somewhat lower sales overall during the quarter, I am very pleased with our improved profitability as a result of applied price increases and improved efficiency. In the Nordic region, with the exception of Norway, we continue to capture market shares. It is also positive that we have been able to increase our sales in the UK and Russia, which has improved the combined outcome for Europe, even though we continue to experience weakness in Ireland and Poland.
During the quarter, we acquired Pro Tec, one of Denmark’s leading suppliers of innovative windows and doors, and have begun to integrate it into our operations. The addition of Pro Tec broadens our offering, particularly towards architects and building companies.
Since most of our sales are made to consumers who are renovating or building their own properties, we are impacted by weaker confidence in the future among consumers who, in turn, are also likely to be affected by the general uncertainty prevalent in the global economy. In the current situation, it is unusually difficult to make projections regarding the future. The uncertainty surrounding the debt-burdened euro countries and the slow-down in the US economy are affecting the recovery, while mortgage ceilings and the removal of government subsidies are having a restraining effect on residential investment in the Nordic countries. We are monitoring developments in our markets carefully and implementing adjustments and efficiency measures in pace with changing circumstances. However, we see favourable opportunities to benefit from the increasing need for energy-saving measures and are persisting with our strategic focus on consumers and their well-being.”

Read the entire report in the pdf attached

For further information, please contact:
Håkan Jeppsson, President and CEO phone 46 (0)70-550 1517 or 46 (0)10-451 45 51
Peter Welin, CFO phone 46 (0)70-324 3190 or 46 (0)10-451 45 52
Jonna Opitz, SVP Communication & Branding phone 46 (0)72-211 9010 or 46 (0)10-451 45 58

About Inwido
Inwido is Northern Europe’s leading supplier of innovative, environmentally friendly, wood-based window and door solutions. The company has operations in Sweden, Denmark, Finland, Norway, Poland, Russia, the UK and Ireland, as well as exports to a large number of other countries. The Group markets some 20 strong local brands including Elitfönster, SnickarPer, Hajom, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 3,800 employees and generated sales of slightly more than SEK 5.1 billion in 2010. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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