1 JANUARY – 30 SEPTEMBER 2009 (COMPARED WITH SAME PERIOD A YEAR AGO)
• Net sales fell 4 % during the period to SEK 4,746 million (4,949). For comparable units net sales fell 14%.
• Operating profit before amortisation of intangible assets (EBITA) decreased by 28% to SEK 452 million (627) and the EBITA margin was 9.5 % (12.7).
• Profit after tax decreased by 35% to SEK 255 million (391).
• Earnings per share were SEK 6.38 (9.78) for the period.
• The return on operating capital for the last 12 months was 24.3% (38.4).
THIRD QUARTER 2009 (COMPARED WITH SAME PERIOD A YEAR AGO)
• Net sales fell 16% during the period to SEK 1,426 million (1,691). For comparable units net sales fell 20%.
• Operating profit before amortisation of intangible assets (EBITA) decreased by 32% to SEK 149 million (220) and the EBITA margin was 10.4% (13.0).
• Profit after tax decreased by 36% to SEK 84 million (132).
• Earnings per share were SEK 2.10 (3.30) for the third quarter.
In my comments on the second quarter I noted a stabilisation of order intake during the month of June. This has now been confirmed in the third quarter – when order intake for comparable units fell 25%, compared with 29% for the second quarter.
The trend of improved order intake is continuing also in October, and market segments such as cutting tools for the manufacturing industry have shown an upturn in orders for the first time in a long time.
The EBITA margin of 10.4% for the quarter is the best so far in 2009.
A stable gross margin, combined with the effect of the cost reductions that our companies have carried out, is the reason for this favourable development.
Our decentralised structure helps us to both cut costs and adapt prices to currency movements and raw material costs in an efficient manner. Clearly defined responsibility for results and profit among the respective company presidents translates to swift response to changes in the market.
During the quarter, we once again began acquiring companies for the first time since the third quarter of 2008. This is because we now have a brighter view of the future. At the same time, the number of companies on the selling block has increased considerably compared with in the first half of 2009.
At the end of October we signed a declaration of intent to acquire all of the shares in Key Valves Technologies Ltd (KVT), South Korea. KVT is a niche manufacturer of high-pressure valves for the power and process industries. KVT has co-operated for many years with HP Valves BV (the Netherlands), which has been part of Indutrade since 2005. KVT has annual sales of approximately SEK 150 million. Through this acquisition we will increase our presence in the Asian market and strengthen our position in the energy segment.
Johnny Alvarsson, President and CEO