NOTE’s Interim Report January–June 2010
10% sales growth and positive operating profit excluding currency effects in Q2
Financial Performance April–June
• Sales were SEK 298.6 (312.1) million. In like-for-like terms, sales increased by 10%.
• The operating loss was SEK -3.8 (-18.1) million, whereof currency effects -5.8 (-1.4). Loss in the previous year included non-recurring costs of SEK 8.0 million.
• The operating margin was -1.3% (-5.8%).
• The loss after financial items was SEK -5.9 (-19.8) million.
• The loss after tax was SEK -11.4 (-16.0) million, or SEK -0.48 (-1.02) per share.
• Cash flow after investments was SEK -54.9 (10.8) million, or SEK -2.32 (0.69) per share.
Financial Performance January–June
• The customer activity has increased, and at the mid-point of the year, our order book was up some 20% on last year.
• Sales were SEK 572.0 (641.2) million. In like-for-like terms, sales increased by 4%.
• The underlying operating loss, excluding structural and other non-recurring costs, was SEK -12.3 (-18.7) million, whereof currency effects -7.4 (-3.3) MSEK.
• The operating loss was SEK -56.3 (-26.7) million.
• The operating margin was -9.8% (-4.2%).
• The loss after financial items was SEK -61.0 (-31.0) million. Excluding structural and other non-recurring costs, the loss after financial items was SEK -17.0 (-23.0) million.
• The loss after tax was SEK -55.1 (-24.5) million.
• Earnings per share were SEK -2.79 (-1.55). Excluding structural and other non-recurring costs, earnings per share were SEK -1.16 (-1.18).
• Cash flow after investments was SEK -40.6 (-4.5) million, or SEK -2.06 (-0.29) per share.
Significant events during the year
• Extensive structural measures–the transfer of production from Skänninge, Sweden and Tauragé, Lithuania is proceeding as planned. The closure of the Gdansk operation has also begun. All the structural measures are scheduled for completion before year-end. The costs of these measures are some SEK 40 million, all of which was charged to the first-quarter result. The objective is for these savings and rationalisation measures to have a minimum annualised profit effect of SEK 50 million.
• Rights issue 2010–NOTE conducted a guaranteed new issue with a gross total of some SEK 87 m in the second quarter, with preferential rights for NOTE’s current shareholders.
Significant events after the end of the period
• New CEO and President of NOTE–Peter Laveson has been appointed NOTE’s new CEO and President, and takes up his position immediately. Peter replaces Göran Jansson, who has been acting CEO and President since January.
• Focusing on NOTEfied–a decision was taken to organise operations in CAD (PCB design) and the NOTEfied preferred parts database in a separate company. NOTE will be a partner of this new company. The purpose of this measure is to increase efficiency and the number of customers of NOTEfied. This transaction is estimated to result in a modest capital gain in the third quarter of the year.
NOTE’s Interim Report for January–June 2010 is now available in PDF format on the corporate web site, www.note.eu, and attached to this message.
The Interim Report for January–September will be published on 21 October.
For more information, please contact:
Göran Jansson, acting CEO and President, tel. +46 (0)8 568 99006, +46 (0)70 698 8572
Henrik Nygren, CFO, tel. +46 (0)8 568 99003, +46 (0)70 977 0686
About NOTE
NOTE is a local business partner delivering innovative solutions for the global manufacture of electronics-based products in the high mix/low volume segment. NOTE has a presence in Sweden, Norway, Finland, the UK, Estonia, Lithuania, Poland and China. In 2009, net sales were SEK 1,200 million; the group has approximately 1,000 employees. NOTE is listed on the NASDAQ OMX Nordic Exchange. For more information, please go to www.note.eu.
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