Interim report January-September 2010
Continued improved profitability
Third quarter of 2010
- Net sales declined by 3 percent to SEK 1,277 million (1,318). Adjusted for currency effects, sales rose by 2 percent
- Operating profit (EBITA) rose to SEK 169 million (162)
- The operating margin (EBITA) increased to 13.2 percent (12.3)
- Earnings after tax rose to SEK 101 million (80)
- Cash flow from operating activities was SEK 202 million (213)
- Net sales rose by 6 percent to SEK 3,758 million (3,553). Adjusted for currency effects, sales rose by 10 percent
- Operating profit (EBITA) rose to SEK 363 million (230)
- The operating margin (EBITA) increased to 9.6 percent (6.5)
- Adjusted for items affecting comparability, the operating margin (EBITA) was 10.2 percent (6.7)
- Earnings after tax rose to SEK 201 million (42)
- Cash flow from operating activities was SEK 90 million (226)
- Inwido AB acquired 34 percent of the shares in Inwido Denmark, following which the process of acquiring the outstanding minority interests in Inwido's subsidiaries is largely complete.
- Net debt amounted to SEK 1,786 million at the end of the period, a decrease of SEK 1,403 million compared with the year-earlier period.
CEO Håkan Jeppsson comments:
“Our earnings continue to follow a very positive trend. Operating profit of SEK 169 million with a margin of 13.2 percent is the best result the Group has ever achieved for an individual quarter. At the same time, adjusted for currency effects, sales rose by 2 percent compared with the corresponding quarter in 2009.
The record profit was a favourable consequence of the trend in the Nordic markets. The earnings trend was very strong in both the consumer and industry markets. The sole exception in the Nordic region is Denmark, where the trend was weaker compared with the preceding year when government subsidies temporarily boosted the market. A favourable price trend and improved efficiency are the foremost reasons for the positive earnings trend in the other Nordic countries.
Our development in the non-Nordic markets remains sluggish although certain positive signals could be noted during the quarter, mainly in Ireland and the UK. Efforts continue with the efficiency enhancement programmes that have been initiated, while Inwido’s new strategic focus with an increased presence in the consumer market is progressing and is expected to generate effects in the next few years.
It seems likely that government budget cut-backs in a number of key European markets will have the effect of slowing the general economic recovery in the wake of the financial crisis. At the same time, the economic situation in the Nordic region appears fairly stable, benefiting demand for our products and services.
With the vision of becoming Europe’s leading supplier of environmentally friendly, wood-based windows and doors, we intend to actively assess acquisition opportunities in the market, in both existing and new markets in Europe.”
Read the entire report in the attached pdf
For further information, please contact:
Håkan Jeppsson, CEO and President,
tel. +46 (0)70-550 1517 or +46 (0)10-451 45 51
Peter Welin, CFO
tel. +46 (0)70-324 3190 or +46 (0)10-451 45 52
Inwido is Northern Europe’s leading producer of innovative, environmentally friendly, wood-based window and door solutions. Inwido has operations in Sweden, Denmark, Finland, Norway, Poland, Russia, the UK and Ireland, as well as exports to a large number of other countries. Operations are divided into four segments: Sweden, the Nordic region, Europe, and Home Improvement & Supply. Inwido has some 3,600 employees and generated sales of slightly more than SEK 5 billion in 2009. The Group's headquarters are located in Malmö, Sweden.