Gunnebo Interim Report January-March 2014

The Gunnebo Security Group has published its results for the first quarter of 2014.

Comments by Gunnebo’s President and CEO Per Borgvall

"During the first quarter Group sales increased organically by 9% to MSEK 1,250. All three of our regions, including Europe, Middle East & Africa (EMEA), have shown sales growth during the quarter, which is very pleasing.

Operating profit excluding restructuring costs increased to MSEK 38 (11) and the operating margin to 3.1% (0.9%). Operating profit increased to MSEK 18 (1) and the operating margin to 1.5% (0.1%). Efforts to adapt the Group’s cost base in Europe have shown visible results and have contributed to the improved profits in Region EMEA. Profitability in the region, however, remains unsatisfactory. During the quarter the Group announced the planned closure of a production facility in Uckfield, UK. In Europe, solutions for cash handling based on SafePay have contributed strongly to the improved profit. Region Asia-Pacific and Region Americas are both showing continued strong operating margins.

In line with the Group’s strategy to move the business’ point of gravity to growth markets, a decision has been made to invest a further MSEK 33 in the production facility in Halol, India in 2014-2015. The investment will expand capacity to meet increasing demand on the Indian market.

During the quarter, order intake increased organically by 1%. In Region Asia-Pacific, order intake remained positive with organic growth of 12%. Region EMEA reported a 1% organic increase in order intake. The stabilisation evident at the end of 2013 has continued during the quarter. Region Americas reported a 16% decrease in order intake compared with the same quarter of the previous year due to several large projects received during the first quarter of 2013.

The first quarter is traditionally the Group’s weakest, and we look forward with confidence to the coming quarter when Gunnebo will continue on its path of moving the point of gravity to growth markets and reducing the Group’s cost base in Europe."

FIRST QUARTER 2014

• Order intake increased to MSEK 1,506 (1,499), organically it increased by 1%.

• Net sales increased to MSEK 1,250 (1,155), organically they increased by 9%.

• Operating profit increased to MSEK 18 (1) and the operating margin to 1.5% (0.1%).

• Excluding expenses of a non-recurring nature of MSEK -20 (-10), operating profit increased to MSEK 38 (11) and the operating margin to 3.1% (0.9%).

• Profit/loss after tax for the period amounted to MSEK -3 (-12).

• Earnings per share were SEK -0.04 (-0.16).

Full report is attached to this press release.

Invitation to Telephone Conference on April 29, 09.00 (CET)

To participate in the conference, please sign up using the link below.

https://eventreg1.conferencing.com/webportal3/reg.html?Acc=922949&Conf=190198

Once registered, you will receive a phone number and a password.

08:55  Call in to the conference
09:00  Review of the interim report by Gunnebo’s President and CEO, Per Borgvall, and CFO, Christian Johansson
09:25  Questions and answers
09:45  Closing of telephone conference

Copies of the presentation will be available 30 minutes prior to the telephone conference on www.gunnebogroup.com. Attending from Gunnebo AB are President and CEO, Per Borgvall, and CFO, Christian Johansson.

A recording of the telephone conference will be available on www.gunnebogroup.com from late afternoon April 29.

GUNNEBO AB (publ)
Group Finance

For more information, please contact:
Per Borgvall, President & CEO Gunnebo AB, tel. +46 10 2095 032, or
Christian Johansson, CFO Gunnebo AB, tel. +46 10 2095 032

www.gunnebogroup.com

Gunnebo discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.01 CET on April 29, 2014.

The Gunnebo Security Group is a global leader in security products, services and solutions with an offering covering cash handling, safes and vaults, entrance security and electronic security for banks, retail, CIT, mass transit, public & commercial buildings and industrial & high-risk sites.

The Group has an annual turnover of €610 million, employs 5,600 people and has sales companies in 33 countries across Europe, Middle East & Africa, Asia-Pacific and the Americas as well as Channel Partners on over 100 additional markets.

We make your world safer.

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