Nolato reports healthy earnings and a strong financial position

Nolato is pleased to report extremely healthy earnings for 2008 as a whole. Sales rose by 17 percent to SEK 2,800 M (2,400), with operating income (EBITA) up 18 percent to SEK 240 M (204). Cash flow stood at SEK 296 M (227) and the equity/assets ratio was 50 percent (46).

“Overall, 2008 was one of Nolato’s best years ever,” says President and CEO Hans Porat. “Our healthy earnings and strong financial position provide a sound foundation on which to face the economic downturn, thus enabling us to continue doing good business in the future.

“Two out of our three business areas – Nolato Medical and Nolato Telecom – showed excellent growth during the year, while Nolato Industrial was affected by the dramatic slowdown in the automotive and industrial markets.”

Nolato Medical’s sales rose by 20 percent to SEK 632 M (526), with earnings up 21 percent to SEK 92 M (76). The EBITA margin was 14.6 percent (14.4).

Nolato Telecom’s sales rose by 35 percent to SEK 1,243 M (920), with earnings up 63 percent to SEK 119 M (73). The EBITA margin was 9.6 percent (7.9).

Nolato Industrial’s sales dropped to SEK 950 M (1,000), with earnings falling to SEK 59 M (78). The EBITA margin was 6.2 percent (7.8).

“Nolato Medical has experienced incredible growth, with excellent profitability and a threefold rise in sales in just a few years, thanks to a growing customer base, increased internationalisation and sound acquisitions,” continues Mr Porat. “Nolato Telecom has continued to strengthen its relationships with its major customers, and has started to make deliveries to a new customer, RIM, which manufactures the BlackBerry.”

A dividend of SEK 2.75 per share (3.00) is proposed for 2008. The Annual Meeting will be held on April 27.