Interim report January-September 2012

Stable profit in continued hesitant markets

Third quarter of 2012

• Net sales amounted to SEK 1,102 million (1,290), a decline of 8 percent adjusted for currency and structural effects
• Operating profit (EBITA) amounted to SEK 130 million (99), including items affecting comparability amounting to SEK 13 million (negative 55)
• Excluding items affecting comparability, the operating margin (EBITA) was 11.8 percent (7.7)
• Profit after tax was SEK 78 million (41)
• Cash flow from operating activities was SEK 66 million (218)

January-September 2012

• Net sales amounted to SEK 3,365 million (3,640), a decline of 6 percent adjusted for currency and structural effects
• Operating profit (EBITA) amounted to SEK 177 million (281), including items affecting comparability amounting to a negative SEK 63 million (negative 67)
• Including items affecting comparability, the operating margin (EBITA) was 5.3 percent (7.7)
• Profit after tax was SEK 95 million (132)
• Cash flow from current operations was negative in the amount of SEK 61 million (166)

CEO Håkan Jeppsson comments:
"The weakening economy, particularly in Europe, continued to have an impact on Inwido’s markets in the third quarter of 2012. In this uncertain market climate, I would nonetheless like to affirm that our business model, focusing on the consumer, has shown good resilience. Being able to report an operating margin of 11.8 percent for the third quarter of the year shows stability. The reason that we have been able to perform so well, despite declining volumes and difficult market conditions, is hard, goal-oriented work. Over the past year, we have made structural changes in virtually all of our markets. We are continuing these efforts uninterrupted to gradually further enhance efficiency. We are also continuing to work on our margins in a structured way and, most importantly of all, we are delivering good products and services to our customers.

Within our individual segments, both the European markets and Supply have continued to develop in line with or better than in the year-earlier period. The fact that we are capturing market shares and delivering positive earnings, albeit from a low level, in markets such as Poland, Ireland and the UK is promising. The general volume decline in our product categories in these markets is 10-20 percent. Even our component company, Supply, has, after a year of major structural changes, a stable and profitable business. In the Nordic markets, we still have healthy profitability even though it is not at the level it should be in all areas. However, consumers’ hesitance as a consequence of the general economic unease, is affecting both volumes and the product mix in a way that disadvantages us. We find the discrepancy compared with the preceding year primarily in Sweden and Finland. In both of these markets, the sharp decline among manufacturers of prefabricated houses provides a large part of the explanation.

The weak market trend means that we will continue to assess and implement adjustments to our structure over the remainder of the year. In the longer term, we judge growth opportunities to be favourable since the underlying need for new and improved homes is considerable around Europe. Efforts to develop even better products and services focused on smart solutions for consumers’ well-being has never been more intensive within Inwido.”

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 3,200 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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