- Despite a demanding market situation, the Group has achieved good results and atisfactory margins in this quarter as well. Operations and production efficiency are good in both the Norwegian and Swedish operations. We expect it is taking longer than originally predicted to re-establish a more stable demand for new homes, and that the market will continue to be unstable and demanding in 2009. We are closely monitoring this situation to ensure that we are ready to adapt production capacity to the market development, comments CEO Lars Nilsen in BWG Homes.

 

To meet the financial turmoil and a reduced order intake, the Group has - as planned - implemented a number of measures. In the 1st quarter 2009, the staffing level will be approx. 920 employees, a reduction of approx. 450 employees (33 percent) from January 2008.

 

- No new infrastructure and property investments, focused sales in projects under development, and decreasing money market interest rates and loan interest rates will have an impact in 2009, Lars Nilsen comments further.

 

House manufacturers in Norway and Sweden are expected to have considerably fewer new house starts in 2009 than in 2008. This will gradually result in strong pent-up demand for houses, and consequently an increased demand for new houses.

 

 

Operating revenues: NOK 655 million (NOK 701 million). Down 6.5 per cent.

EBITDA: NOK 80 million (NOK 88 million). Down 8.2 per cent.

EBITDA margin: 12.3 per cent (12.5 per cent).

EBIT: NOK 71 million (NOK 73 million). Down 2.7 per cent.

EBIT margin: 10.8 per cent (10.4 per cent).

New orders: NOK 531 million (NOK 699 million). Down 24.1 per cent.

 

 

For more details, see the attached interim report.

 

Lars Nilsen, CEO, BWG Homes ASA, tel: +47 23 24 60 00,

Arnt Eriksen, CFO, BWG Homes ASA, tel: +47 23 24 60 37, +47 922 14 625.

 

BWG Homes develops, sells and constructs residential homes in the Nordic region. The present brands owned by the group are Block Watne and Hetlandhus in Norway, Myresjöhus and SmålandsVillan in Sweden. BWG Homes sells and constructs homes through own residential projects and for individual customers. Ranked as a leading residential house builder in its markets, the group annually completes more than 2 000 new homes. BWG Homes has 1 200 employees. In 2007 the pro forma turnover was NOK 3.2 billion.