Negative third quarter for Simtronics
Simtronics ASA, the Norwegian fire and gas safety company, today posted its third quarter 2010 results. The Company saw a drop in sales and had negative earnings, however the order intake exceed sales in the quarter.
Postponed sales for Simtronics products and financial challenges marked the third quarter for the Company. Simtronics posted sales of NOK 64.6 million in the third quarter. This is a 17 per cent decline from last year’s third quarter. EBITDA for the third quarter came in at NOK -3.5 million, compared to NOK 2.8 million in last year’s third quarter. Simtronics posted earnings before taxes of NOK -10.6 million in the third quarter (2009: NOK -2.3 million) and a net loss of NOK 8.4 million (2009: NOK -2.1 million).
For the first nine months of 2010 Simtronics’ sales were NOK 198.5 million, down from NOK 225.0 million in the same period last year. EBITDA for the first nine months was NOK -9.6 million, down from last year’s NOK -4.9 million. Earnings before taxes were NOK -33.4 million in the first three quarters, against NOK -21.4 million last year. The Group’s net profit for the first nine months of 2010 was NOK -24.0 million, compared to NOK -16.1 million in 2009.
“The demand for fire extinguishing products remains low both in Europe and Asia and some deliveries of fire fighting products are postponed. Our detection business had also reduced sales and negative earnings in the quarter. Project execution in Water Mist Engineering has improved in the quarter and are developing according to the revised plan”, said Simtronics CEO Rune Martini.
Simtronics order flow was satisfactory in the third quarter, with order intake above sales. The Company’s order backlog at the end of the quarter was NOK 184 million (Q2 2010: 164).
Simtronics largest shareholder, Autronica Fire and Safety in July announced an intention to make an offer for all Simtronics shares. On this basis an extensive due diligence investigation was carried out in July, August, September and October. Autronica has made no further announcements.
“The order intake has been well above sales in the first three quarters. The strong order backlog in combination with slowly recovering markets suggests that Simtronics performance will improve in the fourth quarter and 2011,” CEO Rune Martini said.
For further information, please contact Mr Rune Martini, CEO of Simtronics ASA, telephone +47 4807 8080
Simtronics ASA (Oslo Stock Exchange: SIMTRO) works to prevent disasters from happening. The company is an international supplier of fire and gas safety systems, active fire fighting solutions and fire prevention systems. Simtronics' flame and gas detectors represent the most accurate, reliable and robust safety technology available. The Company's products, solutions and systems are used by the oil and gas industry as well as in shipping, petrochemical and other process industries and in mining. Simtronics has a well established market base in Europe with Norway, France, UK and Germany as the single most important markets. Simtronics' heritage goes back to 1948.
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