Continued organic growth

At today's capital market day, management will provide sales guidance for the beginning of the third quarter (July-August) as well as an update on the Group's efficiency improvement programme. The following information will be presented:

 

- Continued organic growth in the beginning of the third quarter
- At the end of the first half of 2003, the efficiency improvement programme had reduced the cost level by SEK 230 million, compared with SEK 180 million at year-end 2002

 

Nobia Group saw continued organic growth in the beginning of the third quarter. In the UK operation the DIY segment continued on a trajectory of growth, while some of the cost-reductions announced in connection with the presentation of the half-year financial report are currently under way. The Nordic operation continues to see stable growth. An easing of the downward trend in the Continental European operation is expected.

 

Nobia's sales, adjusted for currency effects and comparable units, grew 3 per cent during the first half of 2003. Excluding adjustments for currencies and comparable units, the Group reported a 4 per cent decline in sales to SEK 4,752 million for the first six months.

 

At the end of the first six months, the Group had lowered its cost level by SEK 230 million through the efficiency improvement programme that is set to achieve savings of SEK 400 million through 2004. Nobia has achieved a majority of the savings by co-ordinating the business units' purchasing activities. Nobia previously announced that it had reduced its cost level by SEK 180 million at year-end 2002.

 

The presentations from the capital market day will be available at www.nobia.se.

 

Nobia AB

18 September 2003

 

For further information:
Katarina Sivander, Communications Manager, Tel: +46 70 247 16 07

Visit Nobia's website at www.nobia.se