Continued weak market

 

The recession continued to have a negative impact on the demand for kitchens. At the end of the period, demand was between 10 and 30 per cent lower in Nobia's markets compared with the preceding year. The customers' purchasing process is taking a longer time and price-consciousness has increased sharply. Nobia's sales amounted to SEK 4,291 million (4,477) and organic growth was a negative 15 per cent. Profit after tax was SEK 39 million (271) and earnings per share after dilution were SEK 0.23 (1.61).

 

Operating profit for the second quarter, excluding structural expenses of SEK 30 million, amounted to SEK 107 million (417) and the operating margin was 2.5 per cent.

Operating profit including structural expenses totalled SEK 77 million (417) and the operating margin was 1.8 per cent (9.3).

The strong decline in earnings was attributable to reduced volumes, structural expenses, price pressure and a changed sales mix.

The currency effect was SEK 0 million (neg: 55).

Operating cash flow amounted to SEK 456 million (11). The improvement compared with the preceding year is attributable to lower tied-up capital, lower tax paid and reduced investments.

 

"Market conditions have remained very difficult," says President and CEO Preben Bager. "Cash flow was strengthened considerably as a result of our focused efforts. We are intensifying the scope of the internal initiatives that we have launched, which will lead to a lower overall cost structure through adapted production capacity and enhanced efficiency."