Interim Report January – September 2008
SECO TOOLS AB
Interim report for the nine months ended 30 September 2008
• Year-on-year revenue for the third quarter rose by 9 per cent both at fixed exchange rates and in Swedish kronor.
• Operating profit for the quarter was SEK 318 M (342) and operating margin was 20.1 per cent (23.7). The weaker operating margin is mainly explained by increased production costs and marketing activities.
• Revenue for the nine-month period was up by 11 per cent at fixed exchange rates and amounted to SEK 4,911 M (4,462).
• Profit after tax for the nine-month period was SEK 733 M (757).
• Earnings per share for the nine-month period fell by 3 per cent to SEK 5.04 (5.20).
Comments from the CEO
“Seco Tools delivered continued growth in revenue for the period. In local currency and excluding acquisition effects, third quarter growth was 8 per cent.
The European region maintained stable growth in the quarter. The NAFTA region had a somewhat weaker quarter in terms of sales but is delivering continued positive growth figures. Growth rates in our Asian business were also lower than earlier in the year due to weaker sales in Japan and China. Development in the emerging economies of Eastern Europe and South America remains buoyant.
Operating margin for the third quarter showed a seasonal low, where the decrease relative to the previous year mainly reflects increased production costs and market investments. The rise in production costs is attributable to capacity expansion and changes in the global production structure. Restructuring charges in production are expected to persist through the end of the year. Cumulative operating margin through 30 September was 22.4 per cent and return on both total assets and equity was steady and high.
Our planned large market investments, including expansion of the sales force, combined with a strong product portfolio have positioned us for continued growth relative to the market. The present turmoil on the financial markets combined with the business cycle slow down however creates an uncertain demand situation for the future.”
The information contained herein is subject to the disclosure requirements of Seco Tools AB under the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. This information was submitted for publication on 30 October 2008, 7:45 CET.
For additional information contact Kai Wärn, President and CEO, (Tel: +46 223-401 10) or Patrik Johnson, CFO,
(+46 223-401 20. E-mail can be sent to investor.relations@secotools.com
Previously published financial information can be found under “Investor Relations & Corporate Governance” on the Seco Tools website (www.secotools.com). Seco Tools AB’s corporate registration number is 556071-1060 and the company’s address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to the Group head office is +46 223-400 00.