Improved operating margin

Download the report in full:

Nobia Q2 2010



(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.



[HUG#1432462]