Year-end report January – December 2013

Improved earnings

Fourth quarter of 2013

• Net sales were SEK 1,193 million (1,243), a decline of 3 percent adjusted for currency effects
• Operating profit (EBITA) was SEK 80 million (111), including items affecting comparability of a negative SEK 45 million (6)
• Including items affecting comparability, the operating margin (EBITA) was 6.7% (8.9)
• The operating margin (EBITA) excluding items affecting comparability of 10.5% was the highest in a fourth quarter since the financial crisis
• Earnings after tax were SEK 37 million (78)
• Cash flow from operating activities was SEK 253 million (308)
• Inwido acquired production equipment and the rights to the Xframe brand from Hansen Group in Denmark

January-December 2013

• Net sales were SEK 4,300 million (4,607), a decline of 3 percent adjusted for currency and structural effects
• Operating profit (EBITA) increased to SEK 299 million (288), including items affecting comparability of a negative SEK 51 million (70)
• Including items affecting comparability, the operating margin (EBITA) increased to 7.0% (6.2)
• Earnings after tax were SEK 150 million (172)
• Cash flow from operating activities was SEK 376 million (248)
• Net debt declined to SEK 971 million (1,131)
      
  

CEO Håkan Jeppsson comments:
“Inwido remains strong in a challenging market for windows and doors. This is demonstrated by the increase in our operating earnings on the year-earlier period, which meant we also ended 2013 with better operating results than the previous year for comparable units. This shows a stable and resilient business model. The reason we are able to perform so well, despite lower volumes and challenging market conditions, is that we are continuing our focus on reducing costs and improving efficiency. In recent years Inwido has made a number of structural changes to its operations. This work will continue as part of our strategy to achieve synergies in a gradually more coordinated group.

Of our segments, Norway had a difficult year in 2013. Volumes and profitability fell for both our windows and doors. We are now getting to grips with the Norwegian operation in order to become the number one challenger in that market. We have already decided to close the door storage facility in Stokke, Norway and move it to the existing storage facility in Lenhovda. We are also looking at the possibility of moving production from Os, Norway to Vetlanda/Lenhovda in Sweden. These types of measures are necessary in the current market climate.

We took market share in both Denmark and Finland in 2013 and we achieved our best ever result in both of these markets. The end of the year was also better than expected in Sweden. Outside the Nordic region performance fluctuated during the year, although there were signs in both Ireland and the UK of an improvement in the market. We have also decided to change our business model in Russia; instead of having our own full company in the country we will establish a sales partnership with exports to Russia from other Inwido units.

We are still cautious about the current economic climate, although we are now seeing some positive signs. For 2014 we have intensified our focus on developing even better and smarter products. Some of these were recently exhibited at the Stockholm Furniture Fair, where we launched new smart windows, doors and sliding doors under the IQ concept for Hajom’s and SnickarPer’s products. This is just the start of something that we believe will be a major trend throughout our industry. Overall, my assessment is that Inwido is a streamlined company with a strong market position that is ready for the opportunities and challenges of this new year.”
   

Read the entire report in the pdf attached
   

For further information, please contact:
Håkan Jeppsson, President and CEO. tel. +46 70 550 15 17 or +46 10 451 45 51
Peter Welin, CFO, tel. +46 70 324 31 90 or +46 10 451 45 52

Inwido is Northern Europe’s largest producer of innovative, environmentally friendly window and door solutions.
Inwido has operations in Sweden, Denmark, Finland, Norway, Poland, Russia, Austria, the UK and Ireland, as well as exports to a large number of other countries.
Operations are divided into four segments: Sweden, the Nordic region, Europe and Supply.
Inwido has approximately 3,100 employees and generated sales of SEK 4.3 billion in 2013. The Group’s headquarters are located in Malmö, Sweden.

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