Lower profit but improved cash flow
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Nobia's sales for 2009 amounted to SEK 15,418 million (15,991). Organic growth was negative 10 per cent. Profit for 2009 was charged with structural expenses in the form of plant closures. Operating profit was SEK 346 million (933) before these structural expenses and SEK 38 million (915) after structural expenses. Loss after tax was SEK 79 million (profit: 529), corresponding to a loss per share of SEK 0.47 (earnings: 3.13). Measures to improve cash flow generated an improvement of SEK 803 million (163). The Board of Directors proposes that no dividend be paid.
Demand weakened in all markets in 2009. The largest decline was noted in the Nordic region where demand in primarily the new-builds segment fell substantially. However, a reduction in the rate of decline was seen towards the end of the year.
Despite the weakening in the market, Nobia's sales in the UK rose and market shares were captured as a result. In other regions, sales fell in pace with the market decline.
Operating profit excluding structural expenses amounted to SEK 346 million (933), entailing an operating margin of 2.2 per cent (5.8). The effect of the decline in volume was slightly offset by higher prices, lower indirect costs and SEK 42 million from changes to pension conditions. Currency effects remained negative at SEK 90 million (110). The currency loss was primarily attributable to the GBP/EUR rate.
The programme to reduce the number of plants was implemented according to plan. The total structural expenses amounted to SEK 308 million (18).
Comments from the CEO
"We implemented an extensive restructuring programme, which is expected to generate total annual savings of approximately SEK 140 million. We already started seeing the effects of the programme in 2009. I am also gratified that we saw the results of our many years of marketing investments by capturing higher market shares in the UK in 2009. Over the next year, we will continue our focus on strengthening our brands and enhancing the efficiency of our supply chain," says Preben Bager, President and CEO.