Interim report, Q1 Jan–March 2016

Positive start to the year for NIBE 

Today’s interim report from NIBE shows both increased sales and profit.

• Sales rose by 3.1% to SEK 3,042 million (SEK 2,950 million)
  
• Operating profit rose by 13.3% to SEK 298 million (SEK 263 million)
• Profit after net financial items rose by 17.5% to SEK 268 million (SEK 228 million)
• Earnings per share amounted to SEK 1.84 (SEK 1.54) 
• Acquisition of North American Heatron Inc., remaining 40% of shares in British Stovax Heating Group Ltd and 50% of shares in Air Site AB

“The year has begun on a positive note, but was characterised by mixed demand in our markets,” says Gerteric Lindquist, MD and Group CEO of NIBE. “In Europe, it varies from country to country and from industry to industry, but overall the sentiment is cautious yet budding optimism. The markets in North America and Asia continue to develop a little more favourably but the exception there, as in Europe, is the gas and oil industry, which is being squeezed by low commodity prices. Worth noting is that the strengthening of the Swedish krona has also weakened our organic growth.

“We are now changing the name of NIBE Energy Systems, our largest business area, to NIBE Climate Solutions, a logical change that better reflects both current operations and future expansion of the product range as well as the business area's sustainability profile.

“The fact that NIBE Element is now achieving an operating margin of just over 10% is the result of long-term, diligent work that includes raising the technology bar, continuous productivity efforts and broadening the product mix through acquisitions as well as our own product development.

“NIBE Stoves is also showing positive growth even though major markets such as Germany and France are in decline.

“We have a timely product programme and business philosophy. Profitability is stable and we’re well prepared for offensive acquisitions. In a world where it is difficult to make predictions, we remain cautiously optimistic about the year as a whole,” says Gerteric Lindquist. 

A teleconference (in English) will be held for press and analysts today at 11.00 (CET with CEO Gerteric Lindquist and CFO Hans Backman. Please call +46 8 566 425 08.

N.B.: To view the images for the presentation, you must register at www.nibe.com

Benny Torstensson, CIO: +46 433 73 070

Christel Fritiofsson, Investor Relations contact: +46 433 73 078