Interim report January-March 2012

A quarter of investments

January – March 2012

• Net sales amounted to SEK 1,005 million (1,000), which, adjusted for currency and structural effects, represents a decline of 2 percent
• Operating profit (EBITA) amounted to SEK 3 million (32), excluding items affecting comparability amounting to a negative SEK 23 million (0)
• Excluding items affecting comparability, the operating margin (EBITA) was 0.3 percent (3.2)
• The loss after tax was SEK 22 million (profit 8)
• Cash flow from operating activities was negative in the amount of SEK 182 million (172)
• Decision to close the production unit in Edsbyn

CEO Håkan Jeppsson comments:

“Market conditions during the first quarter were weaker in some markets, as can be seen in our development. Naturally, we are not pleased with the 2 percent organic decline in sales and our weaker operating profit. At the same time, development in the individual markets has been very mixed. All markets, except Sweden and Finland, have improved compared with the year-earlier period. In some of these markets, particularly Denmark and the UK, we have, despite tough market conditions, captured market shares and increased our earnings. However overall profitability for the quarter was lower than in 2011, which was primarily due to the changed sales mix in Sweden and Finland, where considerable setbacks for manufacturers of prefabricated homes and fiercer competition have been tangible. During the quarter, we have also, as part of our strategy, made considerable investments in both marketing activities and product development. We consider these necessary in being able to focus our efforts on becoming a European leader in windows and doors. The process of streamlining our production structure continues and during the quarter we decided to close our factory in Edsbyn at the end of June. The continued uncertain economic situation in several of our markets makes it difficult to assess how demand will develop in the near term and we are continuing our efforts to review our organisation and identify possible efficiency improvements.

As we now enter the spring season, we do so with favourable order bookings and a strong market position in most markets. At the same time, external factors do exist that could negatively affect consumers’ willingness to buy in the future. However, we have a more attractive product portfolio and better insight into our consumers’ behaviour than ever before. Even though the start to the year was not what we had hoped, there is nothing to suggest that Inwido’s underlying market conditions have worsened. Consequently, we look forward to the continuation of 2012, following the seasonally weak first quarter.”

Read the entire report in the pdf attached

For further information, please contact:
Håkan Jeppsson, President and CEO phone 46 (0)70-550 1517 or 46 (0)10-451 45 51
Peter Welin, CFO phone 46 (0)70-324 3190 or 46 (0)10-451 45 52
Jonna Opitz, SVP Marketing, Sales & Communication phone 46 (0)72-211 9010 or 46 (0)10-451 45 58

About Inwido
Inwido is Northern Europe’s leading supplier of innovative, environmentally friendly, wood-based window and door solutions. The company has operations in Sweden, Denmark, Finland, Norway, Poland, Russia, the UK and Ireland, as well as exports to a large number of other countries. The Group markets some 20 strong local brands including Elitfönster, SnickarPer, Hajom, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 3,500 employees and generated sales of slightly more than SEK 5 billion in 2011. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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