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© dana-rothstein-dreamstime.com Electronics Production | July 16, 2013

Note: 'Demand lower than anticipated'

The first half-year featured continued poor demand on several of NOTE’s domestic markets.
Uncertainty on several final markets caused delays to deals and stock redimensioning by several NOTE customers. As a consequence, volumes on several ongoing customer assignments reduced. Sales in the period were SEK 450.9 (554.8) million, corresponding to a 19% decrease.

Demand in the first half-year was lower than anticipated. No deliveries were shipped to the customer that had the provision for doubtful debt made in the final quarter of the previous year. Approximately 6 percentage points of the decrease in sales were related to financial difficulties for customers. Just over 4 percentage points consisted of lower volumes to Swedish and UK customers with project-oriented sales, while sales performance in Finland and Norway
was more stable.

Financial Performance January–June
  • Sales were SEK 450.9 (554.8) million.
  • Operating profit was SEK 3.9 (20.9) million.
  • The operating margin was 0.9% (3.8%).
  • Profit after financial items was SEK 1.3 (17.6) million.
  • Profit after tax was SEK 0.9 (13.9) million, corresponding to SEK 0.03 (0.48) per share.
  • Cash flow after investments was SEK -6.0 (49.3) million, or SEK -0.21 (1.71) per share.

Sales in the second quarter were down by 16% to SEK 236.1 (280.1) million. Essentially, the decrease relates to the combination of continued poor market conditions with delays to projects, which negatively affected volumes on ongoing customer assignments.

Compared to the first quarter of the year, normally somewhat weaker in seasonal terms, sales increased by 10% (2%). Sales from Industrial Plants in Estonia and China were 22% (18%) of sales for the period. Manufacturing costs decreased by 4% in the second quarter. Some SEK 0.9 (0.0) million of costs in the period were of a non-recurring nature. But lower manufacturing and sales volumes meant that gross margins deteriorated by 0.9 percentage points to 8.9% (9.8%).

Financial Performance April–June
  • Sales were SEK 236.1 (280.1) million.
  • Operating profit was SEK 3.6 (10.0) million.
  • Operating margin was 1.5% (3.6%).
  • Profit after financial items was SEK 2.6 (8.9) million.
  • Profit after tax was SEK 2.0 (6.8) million, corresponding to SEK 0.07 (0.23) per share.
  • Cash flow after investments was SEK 2.0 (13.0) million, or SEK 0.07 (0.45) per share.

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EUR 1 = SEK 8.71578 (as of June 16, 2013)
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November 15 2018 5:25 pm V11.9.0-1