Interim report January-March 2013

Demand remains subdued

First quarter 2013

• Adjusted for currency and structural effects, net sales amounted to SEK 857 million (1,005), a decline of 6 percent
• Operating loss (EBITA) was SEK 19 million (-20), including items affecting comparability amounting to a negative SEK 2 million (-23)
• The operating margin (EBITA), including items affecting comparability, amounted to a negative 2.3 percent (-1.9)
• The loss after tax was SEK 30 million (-22).
• Cash flow from operating activities totalled a negative SEK 123 million (-182)
• Cost savings have had a positive impact
• Gross profit margins were maintained

CEO Håkan Jeppsson comments:

“Market conditions remained tough as we entered 2013. The lowest point that we thought we’d reached during the second half of last year has been replaced by further deterioration in the market. The fact is that volumes in our markets during the first quarter of this year were lower than they were in our worst year, 2009. As the market leader, we are clearly affected by these market conditions, which have resulted in a 6-percent decline in sales measured in local currencies and adjusted for structural effects. Sales during the quarter were also affected by the abnormally cold and long winter in Europe, combined with fewer working days than last year. But despite the surprisingly low volumes and price pressure, we have succeeded in defending our gross profit margins. I’m happy with that.

       Cost savings and work on streamlining our production structure have also had a positive impact during the quarter. I believe that we have good capacity control and can adapt to market fluctuations relatively swiftly. On the positive side, I would also like to highlight Finland, which has performed better during the first quarter of this year than last year. Furthermore, our industrial sales have been healthy, and order levels within this segment are looking good. Unfortunately we are suffering due to consumer restraint and total orders have dropped by 18 percent on 2012. We are also facing challenges in the Norwegian market, where we are undergoing a major process of change and are therefore unable to perform in line with expectations.

      Demand for our products will gradually increase as the days get longer and warmer. Meanwhile we continue to operate in an unsettled market. There are no major crises in the Nordic countries, which account for the majority of our business. However, consumers remain hesitant and are delaying purchasing decisions, which is having a negative impact on demand and increases price pressure. In addition, Northern Europe has weakened further, while the situation in Eastern Europe is more mixed. Considering the situation, we feel it will be difficult to catch up after the weak start to the year. We are still convinced that our strategic direction, with improved offerings to consumers and investments in product development, is the way forward, although the current focus is primarily on efficiency, structure and synergy effects. Inwido is now a streamlined company that enjoys a strong market position, which means we are well prepared for a recovery in the market.”

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 3,100 employees and generated sales of slightly more than SEK 4.6 billion in 2012. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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