Interim report January-September 2011

Uncertain market affects profitability

Third quarter of 2011

• Net sales amounted to SEK 1,290 million (1,277), which, adjusted for currency and structural effects, represents a decline of 1 percent
• Operating profit (EBITA) amounted to SEK 154 million (169), excluding items affecting comparability amounting to a negative SEK 55 million (0)
• Excluding items affecting comparability, the operating margin (EBITA) was 11.9 percent (13.2)
• Profit after tax was SEK 41 million (101)
• Cash flow from operating activities was SEK 218 million (202)
• Inwido paid dividends totalling SEK 301 million
• Net debt amounted to SEK 1,779 million, SEK 7 million lower than for the corresponding period in 2010
• Acquisition of Pro Tec Vinduer in Denmark, which specialises in supplying the industrial market

  January-September 2011

• Net sales amounted to SEK 3,640 million (3,758), which, adjusted for currency and structural effects, represents a decline of 1 percent
• Operating profit (EBITA) amounted to SEK 348 million (384), excluding items affecting comparability amounting to a negative SEK 67 million (negative 21)
• Excluding items affecting comparability, the operating margin (EBITA) was 9.6 percent (10.2)
• Profit after tax was SEK 132 million (201)
• Cash flow from operating activities was SEK 166 million (90)

CEO Håkan Jeppsson comments:

“Throughout 2011, Inwido’s consumer sales have been affected by the decline in demand and the uncertain economic situation around the world. Operating profit for the third quarter declined, primarily as a consequence of an unfavourable customer and product mix, as well as higher selling expenses. At the same time, I am very pleased that we have been able to increase our market share in all markets except Norway and Poland. This demonstrates Inwido’s strong position in the market and we see this as recognition of our customers’ appreciation of our offerings and our efforts to better meet their requirements. In the industrial market, which has shown good growth so far this year, the rate of growth was seen to slow down towards the end of the third quarter.
We take the current economic situation very seriously and, given this, consider it particularly important to take a long-term approach. We have therefore conducted a thorough analysis of our production structure, identified measures to enhance efficiency and already implemented these. The uncertain economic situation has also led to certain rationalisation measures being hastened. We will continue to assess and implement adjustments to our structure over the remainder of the year. Historically, Inwido’s brand portfolio has allowed us to strengthen our market position in times of uncertainty. We believe strongly in our strategic focus on consumers’ well-being. For this reason, we also see good opportunities to be able to benefit from increased needs for energy-saving solutions and comfort in the home.”

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 3,800 employees and generated sales of slightly more than SEK 5.1 billion in 2010. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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