Continued restructuring and efficiency enhancement

Download the report in full:

Demand in Nobia's principal markets in the first quarter remained weak. Sales for the first quarter amounted to SEK 3,456 million (3,777). Organic growth was negative 1 per cent. Profit was charged with expenses of SEK 52 million for the ongoing restructuring and efficiency measures in the operations in France and costs of SEK 72 million related to the divestment of Culinoma and Pronorm. Operating loss was SEK 24 million (loss: 34) before these structural expenses and SEK 148 million (loss: 272) after structural expenses. Loss after tax was SEK 134 million (loss: 259), corresponding to a loss per share of SEK 0.80 (loss: 1.55). Cash flow was strengthened by SEK 491 million through divestments and amounted to SEK 442 million (pos: 114).

Nobia's sales trend was burdened by negative currency effects of SEK 252 million (pos: 263). Operating loss excluding restructuring costs amounted to SEK 24 million (loss: 34), corresponding to an operating margin of negative 0.7 per cent (neg: 0.9). Due to continued weak demand, the Nordic and Continental

Europe markets recognised largely unchanged earnings, while the UK posted a small improvement. The first quarter is seasonally weak for Nobia.

Nobia's earnings continued to be adversely affected by currency effects, approximately negative SEK 10 million (neg: 30). In addition to structural expenses, primarily lower volumes had a negative effect on earnings, while lower costs for direct material and price increases impacted earnings positively. Return on capital employed including structural expenses amounted to 2.7 per cent (6.2) over the past twelve-month period.

The loss per share for the period, including structural expenses, amounted to SEK 0.80 (loss: 1.55).

Comments from the CEO

"Demand remains weak, although we did note certain bright points in the new builds market in the Nordic region and cautious optimism in the UK. The UK operations, Nobia's largest, continued to strengthen their market position, with increased kitchen sales in all channels. Extensive structural measures in France, which will lead to more efficient logistics and a more attractive customer offering, had a heavy impact on earnings for the quarter. Otherwise, work at Nobia is characterised by the major change in strategy and organisation announced earlier, which will create an effective Nobia," says Preben Bager, President and CEO.

New President in Nobia

The Nobia Board of Directors appointed Morten Falkenberg as the new President and CEO. He will take office not later than 15 October 2010 and will succeed Preben Bager who previously announced his intention to step down during the year.