Interim report January – September 2009
Interim report for the nine months ended 30 September 2009
* Revenue for the quarter fell by 34 per cent at fixed exchange rates and by 29 per cent in Swedish kronor (SEK), and amounted to SEK 1,127 M (1,582). * The cost saving measures are proceeding according to plan. * Despite continued low volumes, the Group posted a positive operating result of SEK 51 M (318) for the quarter. Operating margin for the quarter was 4.5 per cent (20.1). * Revenue for the nine-month period fell by 34 per cent at fixed exchange rates and amounted to SEK 3,658 M (4,911). * Profit after tax for the nine-month period was SEK 83 M (733). * Capital reductions contributed to a strong cash flow of SEK 574 M for the nine-month period. * Earnings per share for the nine-month period were SEK 0.57 (5.04). Comments from the CEO “Demand in virtually all of Seco Tools’ markets remained very weak in the third quarter. Aside from the traditional seasonal decrease, however, the sales rate was somewhat higher than before the summer. This is most likely an effect of the now completed inventory reductions among our end-customers and distributors. All cost adaptations proceeded with satisfactory results during the quarter and are expected to lower the Group’s annual cost level by around SEK 600 M, of which SEK 500 M will affect profit for the current year. Including the decrease in temporary employees, our global workforce has been reduced by the equivalent of more than 850 positions since the end of the third quarter last year. Despite weak demand, Seco Tools succeeded in delivering a continued operating profit. Operating margin for the third quarter was somewhat stronger than for the second quarter and amounted to 4.5 per cent (20.1). The decrease compared to the previous year is mainly attributable to the drop in both sales and production volumes. The period’s negative earnings growth has been somewhat offset by the effects of the cost-cutting programmes. Continued reductions in working capital during the quarter contributed to a sustained strong cash flow of SEK 574 M (632) for the nine-month period. In spite of a stabilised market during the period, future development remains uncertain. On the whole, we are currently seeing no signs of a near-term change in the demand scenario,” says Kai Wärn, President and CEO of Seco Tools. The information contained herein is subject to the disclosure requirements of Seco Tools AB under the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. This information was submitted for publication on 30 October 2009, 7:45 a.m. CET.