Interim report January-June 2009
• Net sales for the second quarter of 2009 amounted to SEK 1,294M (1,571), a decline of 18 percent compared with the corresponding quarter in 2008. Organic net sales declined by 15 percent.
• The operating profit (EBITA) for the period amounted to SEK 95M, (184). A continued weak market for new construction in the Nordic countries, the UK and Ireland, combined with competition in certain product categories, had a negative impact on earnings.
• The adjusted operating margin for the second quarter amounted to 8 percent (11).
• Earnings after tax amounted to SEK 23M (87).
• Cash flow from current operations improved from SEK 48M to SEK 185M, primarily as a consequence of reduced working capital due, among other things, to reduced inventory levels.
• During the second quarter, better order bookings and sales were noted in several of Inwido’s markets, primarily within the consumer market segment. In the Nordic countries, the renovation market, which is of particular importance for Inwido, is benefiting from government renovation and extension subsidies and low interest rates.
• The Group’s program to reduce capacity and costs and thereby enhance efficiency has continued according to plan over the quarter.
CEO, Håkan Jeppsson comments:
”Following a tough start to 2009, we are now seeing increased demand in several of Inwido’s markets. Sales in the second quarter fell by 18 percent compared with the year-earlier period, but improved on the first quarter of 2009. Our sales are made primarily to consumers who are renovating or building their own properties. This market segment showed continued sales increases in the second quarter.
To cope with weaker demand and, at the same time, enhance efficiency, we have continued our previously announced programme of measures to adapt production capacity, as well as improving marketing and purchasing. To date, we have reduced our fixed costs by approximately SEK 170 million.
Considering the deep economic slump that began in the early autumn of 2008,I am very pleased to be able to report an adjusted operating margin of 8 percent for the second quarter of 2009.
Inwido's priorities for 2009 include continued efforts to develop our range of well-designed energy-saving and environmentally friendly products and to enhance efficiency in processes all the way from purchasing to the customer. We will also be focusing on operating capital and the balance sheet with a view to strengthening our finances and making room for continued aggressive ventures.”
For further information, please contact:
President and CEO Håkan Jeppsson, tel. +46 70 550 1517 or +46 40 17 11 31
or CFO Peter Welin, tel. +46 40 17 11 32
About Inwido (www.inwido.com) Inwido is Northern Europe’s leading producer of windows and doors. The Group’s core products are windows and doors in wood and wood/aluminium. Products are sold to property owners directly or via retailers, as well as to anufacturers of prefabricated homes and construction contractors.
The Group has approximately 3,600 employees in the Nordic region, Poland, Russia, the UK and Ireland. In 2008, sales totalled SEK 5.6 billion.
The Group’s headquarters are located in Malmö, Sweden. Inwido's principal owner is Ratos AB, one of Europe’s largest listed private equity companies. Ratos owns 96 percent of Inwido AB, with senior executives holding the remaining 4 percent.
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