Year-end report January-December 2012

Continued stable operating margin

Fourth quarter of 2012

• Net sales were SEK 1,243 million (1,410), a decline of 5 percent adjusted for currency and structural effects
• Operating profit (EBITA) was 111 million (126), including items affecting comparability of a negative SEK 7 million (2)
• Including items affecting comparability, the operating margin (EBITA) was 8.9 percent (8.9)
• Earnings after tax were SEK 78 million (77)
• Cash flow from operating activities was SEK 309 million (380)

January – December 2012

• Net sales were SEK 4,607 million (5,050), a decline of 6 percent adjusted for currency and structural effects
• Operating profit (EBITA) was 288 million (407), including items affecting comparability of a negative SEK 70 million (69)
• Including items affecting comparability, the operating margin (EBITA) was 6.2 percent (8.1)
• Earnings after tax were SEK 141 million (200)
• Cash flow from operating activities was SEK 248 million (546)

CEO Håkan Jeppsson comments: 
"Inwido continues to maintain a stable footing in a challenging market for windows and doors – a market that was even more challenging in 2012 than it was in 2011. In my view, the fact that we exceeded the previous year’s operating margin in the fourth quarter, despite this situation, demonstrates the resilience of our business model. The reason that we have been able to perform so well, despite declining volumes and difficult market conditions, lies in our focused efforts on costs and margins. During 2011 and 2012, we implemented several structural changes in our operations, which was a challenge. These initiatives have now begun to generate results. At the same time, we are working tirelessly to improve our offerings to customers and consumers with regard to both products and services.

Of our segments, both Europe and Supply continued to develop better than in the year-earlier period. Order bookings increased in all European markets in the quarter and earnings improved. Following major structural changes, Supply showed favourable development. In the Nordic market, more than others, we have felt the effects of consumers’ hesitation resulting from the general economic unease. This mainly affects volumes, but also the product mix in a way that disadvantages us. Declining volumes have been noted particularly in Sweden and Finland, which are our two largest individual markets. In the fourth quarter, however, the cost savings and efficiency enhancements that have been initiated began to deliver results.

In all of our markets, the business climate remained largely unchanged in the fourth quarter compared with the third. It is too early to say whether this is a sign of the decline having bottomed out, but order bookings did stabilise somewhat in the second half of the year. In 2012, we took several steps to strengthen our strategy for profitable growth. We have also developed plans for measures to be able to cope with a further weakening of the market. Although the market prospects are on the whole not the best, I do feel we have a strengthened position in the market and a good balance in our operations as we move into 2013.”

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 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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