BWG Homes - Continued growth in turnover and results in Q2 2011

BWG Homes ASA operating revenues for Q2 2011 amounted to NOK 902 million, an increase of 11.3 per cent when compared with Q2 2010. Operational EBITDA for the quarter was NOK 102 million, an increase of 9.8 per cent. Operational EBITDA margin was 11.3 per cent, and operational EBIT margin was 10.6 per cent.

The order backlog at the end of the quarter was NOK 1 924 million, an increase of 5.1 per cent when compared to the same period in 2010.

Cash flow from operations for Q2 was positive at NOK 116 million. Net interest-bearing debt has decreased by NOK 41 million compared to Q1 2011, and increased by NOK 106 million compared to Q2 1010.

"A continuing strong order backlog into the quarter and increased production capacity has resulted in revenue growth for both the Norwegian and Swedish operations. The Group's operating results also show growth. In the Norwegian operation (segment Norway) improved production capacity, operational efficiency and good sales have resulted in a solid performance and good margins. The production capacity in Norway will ble increased further during the 2nd half of the year. The Swedish operation (segment Sweden) has increased the turnover, but there is a pressure on margins due to low efficiency in parts of the production and lower sales. As a result of significantly reduced sales and volumes, the Swedish operations have initiated layoffs, involving a reduction of 50 full-time equivalents in addition to temporary staff layoffs. Efficiency programs have been started in the Myresjöhus operation to improve efficiency and performance", comments CEO Lars Nilsen in BWG Homes ASA.

"The demand for new homes is showing positive development in the Norwegian market. The market situation continues to be demanding for parts of the housing sector in Sweden due to a slow-down in house sales in the climate of restrictive lending and more expensive financing for home buyers. The development in our markets in isolation is still considered stable, with population growth and rising employment. The underlying need for new homes is still high in Norway and Sweden. At the same time, there is concern at the escalating international financial turmoil. We monitor the market situation closely in order to adjust production capacity, the product portfolio and project development to the prevailing conditions, Lars Nilsen comments further.

Key operational figures Q2 2011*:

• Operating revenues: NOK 902 million (NOK 810 million)
• Operational EBITDA: NOK 102 million (NOK 93 million)
• Operational EBITDA margin: 11.3 % (11.4 %)
• Operational EBIT: NOK 96 million (NOK 88 million)
• Operational EBIT margin: 10.6 % (10.9 %)
• Cash flow from operations after interest and tax: NOK 116 million (NOK 103 million)
• Order intake: NOK 830 million (NOK 925 million)
• Order backlog: NOK 1 924 million (NOK 1 831 million)

Key operational figures 1. Half 2011*:

• Operating revenues: NOK 1 829 million (NOK 1 528 million)
• Operational EBITDA: NOK 201 million (NOK 175 million **)
• Operational EBITDA margin: 11.0 % (11.5 % **)
• Operational EBIT: NOK 190 million (NOK 167 million **)
• Operational EBIT margin: 10.4 % (10.9 % **)
• Cash flow from operations after interest and tax: NOK -98 million (NOK 78 million)
• Order intake NOK 1 857 million (NOK 1 893 million)

* The operational figures are based on the internal management reports which differ somewhat from the consolidated accounts; see note 1 in the interim report.
** Includes reversal of NOK 8.2 million in Q1 2010 related to pension liabilities in Block Watne AS.

For the consolidated income statement (IFRS), reference is made to page 10 in the interim report.

For more details, see the attached interim report.

Further information from:
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.