Interim report, Q2 2008

First-half sales slightly up on last year’s. Profits down, as anticipated
– but full-year forecast remains cautiously optimistic.

In today’s interim report for the first half-year of 2008, NIBE reports:

 

  • Sales rose to SEK 2,566 million (corresponding period 2007: SEK 2,532 million).
  • Profit after net financial items was SEK 144 million (SEK 194.9 million).
  • Earnings per share totalled SEK 1.07 (SEK 1.49).
  • Acquisitions in Austria, Denmark and an increased stake in CJSC EVAN of Russia.

 

“In the first six months of the year we have continued to capture new shares of the market in all business areas,” says Gerteric Lindquist, CEO of NIBE Industrier. “The economy is still faltering, however, which is having an effect particularly in market segments with a clear consumer profile.

 

“The fall in profits is largely attributable to relentless rises in the costs of materials that we have not yet been able to fully compensate ourselves for, and a significantly different approach to stockbuilding in the first half of this year compared to the corresponding period last year, which has resulted in lower absorption of indirect costs.

 

“We continue to maintain a firm focus on costs and are making intensive efforts to increase productivity and slim down our stocks. Even so, at the same time, we are compelled to raise our prices. “The heat pump market in Sweden and Germany has shown signs of a recovery in the second quarter and interest in these products is great throughout the whole of Europe.

 

“Our modern, new wood-stove production facility and the production warehouse that have recently been brought into operation in Markaryd will create good opportunities for continued profitable expansion, and our recent acquisitions in Austria, Denmark and Russia are proof of our strong faith in the future.

 

“Our view of the prospects for 2008 remains therefore cautiously positive at the same time as we recognise that we are, of course, dependent on developments in the world around us,” concludes Gerteric Lindquist.

 

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