Interim report Q2 January - June 2014

A quarter of good profitability

April – June 2014

• Net sales rose to SEK 1,301 million (1,141), which represents an increase of 7%, adjusted for currency and structural effects
• Order bookings were up by 8%, adjusted for structural effects
• EBITA rose to SEK 121 million (105), after items affecting comparability amounting to a negative SEK 29 million (0), and the EBITA margin was up to 9.3% (9.2)
• Operating EBITA increased to SEK 150 million (105) and the operating EBITA margin increased to 11.6% (9.2)
• Earnings per share, before and after dilution, amounted to SEK 0.10 (0.25).
• Closure of the factory in Os, Norway completed
• Decision to relocate part of UK production to Poland

January – June 2014

• Net sales rose to SEK 2,208 million (1,998), which represents an increase of 6%, adjusted for currency and structural effects
• Order bookings were up by 14%, adjusted for structural effects
• EBITA amounted to SEK 51 million (86), after items affecting comparability amounting to a negative SEK 104 million (3), and the EBITA margin was 2.3% (4.3)
• Operating EBITA rose to SEK 155 million (88) and the operating EBITA margin increased to 7.0% (4.4)
• Earnings per share, before and after dilution, amounted to a negative SEK 0.16 (positive 0.12)
• Acquisitions of JNA/SPAR in Denmark

The CEO comments:
Overall, Inwido had a good second quarter of 2014. Sales increased organically by 7 percent and we also received a healthy contribution from our recently acquired companies JNA and SPAR in Denmark. Adjusted for structural effects, order bookings increased for the second quarter in a row, rising by 8 percent in the quarter compared with the year-earlier period. The order backlog is now 20 percent higher than at the same point in 2013. Along with growth, we are also seeing substantially improved profitability for Inwido. Before items affecting comparability, we earned SEK 150 million in the quarter, helping us move our operating margin in the right direction at 11.6 percent.

Inwido has carried out complex efficiency improvements and structural changes in recent years and we are now seeing the effects of this. We have relocated production, developed product platforms and changed numerous processes. As we are in the midst of a number of changes, this has been and remains a challenge for the entire organisation. It’s therefore heartening to see the positive effect this work is having as our markets now appear to be stabilising.

The indicators that we track, particularly the consumer confidence index, are currently pointing in the right direction in many countries. The industry market is improving, which is having a positive impact for us in the Nordic region. Our large Nordic markets in Sweden, Finland and Denmark all had a good quarter, although conditions in these markets vary significantly. Our weaker segments are still Norway and EBE, which are struggling with issues of structure and profitability. We have also taken and initiated measures, both with regard to production structure and sales processes, which are yet to have an impact on results.

We are now looking forward to the second half of 2014. If the situation at the macro level stabilises, our assessment is that the market will continue to develop positively. This provides good opportunities for Inwido. In addition, the market remains characterised by competition on price and customer price awareness, which creates challenges and demands that we continue to become more efficient and offer smarter solutions.

MALMÖ, 14 AUGUST 2014

Håkan Jeppsson
President and CEO

Read the full report in the pdf attached

For more information, please contact:
Inwido AB
Håkan Jeppsson, President and CEO Phone: +46 (0)10-451 45 51 or +46 (0)70-550 15 17
Peter Welin, CFO Phone: +46(0)70-324 3190 or +46(0)10-451 45 52 E-mail: peter.welin@inwido.com

About Inwido
Inwido is Europe’s largest supplier of innovative, environmentally friendly, wood-based window and door solutions. The company has operations in Sweden, Denmark, Finland, Norway, Poland, the UK, Austria 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, Hemmafönster, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 3,100 employees and generated sales of slightly more than SEK 4.3 billion in 2013. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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