Improved operating margin
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(All figures in brackets refer to the corresponding period in 2009)
Sales for the second quarter amounted to SEK 3,796 million (4,291). Organic growth was negative 3 per cent. Operating profit, excluding restructuring costs of SEK 30 million (30), amounted to SEK 195 million (107), corresponding to an operating margin of 5.1 per cent (2.5). Profit after tax and restructuring costs totalled SEK 113 million (39), corresponding to earnings per share of SEK 0.68 (0.23). Operating cash flow amounted to SEK 310 million (456).
Nobia's sales trend during the second quarter remained negative, mainly due to negative translation effects totalling SEK 315 million (pos: 426). The improvement in the company's operating profit compared with the second quarter of 2009 primarily derived from a more favourable sales mix, the implementation of price increases and reduced costs, which contributed to the improvement of the gross margin by approximately 3 percentage points compared with the second quarter of the preceding year. Total operating profit remained unaffected by currency effects (0), of which translation effects amounted to negative SEK 15 million (pos: 10) and transaction effects to positive SEK 15 million (neg: 10). Return on capital employed including restructuring costs amounted to 4.2 per cent (1.0) over the past twelve-month period.
Operating cash flow for the quarter was lower than in the preceding year, since working capital did not decline to the same extent.
Comments from the CEO
"I am very pleased with the company's positive margin trend during the quarter, especially given that the improvement was achieved in a difficult market situation. We noted increased demand in the new builds segment in the Nordic region, particularly in Finland and Sweden. The situation in the UK is difficult to assess due to the public funding austerity measures being implemented. The sales trend in the Continental Europe region was negative, mainly due to France. Our internal change programme is proceeding according to plan," summarises Preben Bager, President and CEO.