Interim report January-March 2009

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• Net sales for the first quarter of 2009 amounted to SEK 940.3M (1,242.7), a decline of 24.3 percent compared with the year earlier period. Organic growth was –20.1 percent.

 

• The operating loss (EBITA) for the period amounted to SEK –27.0M, compared with a profit of SEK 48.5M for the year earlier period.

A continued weak market for new construction in the Nordic countries, the UK and Ireland had a negative impact on earnings.

 

• Earnings after tax amounted to SEK –61.4M (+55.6).

 

• Cash flow from current operations totalled SEK ¬–202.6 M

(–90.8), primarily as a result of weakened operating earnings.

 

• The low level of activity in Inwido’s markets persisted early in the quarter but there was some improvement later as a consequence of stronger order bookings, primarily in Sweden and Finland. The renovation market, which is important for Inwido, is benefitting from various subsidies for repairs and extensions that the Nordic governments have made available to private individuals.

 

• Capacity and costs are being cut to respond to the current market situation.

 

 

CEO Håkan Jeppsson comments:

 

“As expected, the first quarter of the year was characterised by weak demand in several of Inwido's markets. Sales decreased by 24 percent and we have been forced to implement a program of measures involving capacity adjustments through personnel cutbacks and production unit closures, as well as market and purchasing measures. To date, the implemented program of measures entails cost reductions for 2009 of approximately SEK 300M compared with 2008. Further measures, including new agreements and price hikes, will contribute a combined effect of about SEK 40M.

 

Our most important market segment is the Consumer segment. This consists of property owners who buy windows and/or doors directly from us or through retailers. The Consumer segment accounts for slightly less than two thirds of Inwido's sales and is benefiting from the various political measures being implemented to stimulate renovation and remodelling.

 

Inwido's priorities for 2009 include continued efforts to develop our range of energy saving and environmentally friendly products and to enhance 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 flexibility in the current business climate.

 

The long term trend for our products is strong and propelled by continued urbanisation and increasing renovation needs – particularly where this involves installing energy efficient windows and doors. Inwido is at the forefront in the development of products that save energy, that are safe and that have a design which offers additional value.”

About Inwido (www.inwido.com)

Inwido is Northern Europe’s leading producer of windows and doors. The Group develops, produces and sells a complete range of windows and doors in wood and wood/aluminium. Products are sold to property owners directly or via retailers, as well as to manufacturers 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 is owned by Ratos AB, one of Europe's largest listed private equity companies.

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