Organic growth 6 per cent

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Nobia Q4 ENG

Sales for the fourth quarter 2010 amounted to SEK 3,605 million (3,782). Organic growth was positive 6 per cent. Operating profit excluding restructuring costs amounted to SEK 193 million (166), corresponding to an operating margin of 5.4 per cent (4.4). Loss after tax and restructuring costs totalled SEK 110 million (gain: 104), corresponding to a loss per share of SEK 0.66 (earnings: 0.62). Operating cash flow amounted to SEK 97 million (89). The Board of Directors proposes that no dividend be paid for the 2010 fiscal year.

Nobia's sales for the fourth quarter fell as a result of negative currency effects totalling SEK 281 (neg: 52) and the sale of Pronorm, which was partly offset by positive organic growth of SEK 201 million (neg: 168).
The gross margin excluding restructuring costs strengthened to 39.3 per cent (38.7).
Operating profit improved SEK 27 million to SEK 193 million (166), mainly due to volume increases, implemented price increases and more efficient production.
Operating profit was charged with measures corresponding to SEK 244 million encompassing personnel reductions and store closures. In total, these measures and other restructuring costs amounted to SEK 281 million (26) for the quarter. For more information, refer to the description of the respective regions and to pages 7 and 10.
Positive currency effects of about SEK 20 million (neg: 25) impacted profit, of which SEK 10 million (0) in translation effects and approximately SEK 10 million (neg: 25) in transaction effects.
Return on capital employed amounted to 0.4 per cent (1.0) and the return on shareholders' equity to negative 2.4 per cent (neg: 1.9) including restructuring costs in 2010.
Operating cash flow strengthened slightly to SEK 97 million (89).

Comments from the CEO
"We are keen to maintain a high tempo in our change process. Accordingly, we have introduced a flatter organisation and undertaken a number of savings measures, which will result in our annual cost basis being reduced by at least SEK 100 million. These savings are expected to emerge gradually during the year. It could be said that the recovery in this quarter was directly reinvested in our future given that operating profit for the fourth quarter was charged with SEK 244 million for these measures. By continuing to optimise our work, we will attain the economies of scale in the Group that will lead us towards the target of a 10-per-cent operating margin," says Morten Falkenberg, President and CEO.