Solar achieved revenue growth of 3.4% in Q1 while organic growth for the same
period decreased by -7.1%. While cash flow from operating activities and debt
reduction were beyond our expectations, revenue and net profit for the period
matched expected levels.
Q1 2009 financial ratios:
- Revenue increased by 3.4% to € 373.2m (360.8).
- Organic growth decreased by -7.1% (6.7).
- EBITA totalled € 7.6m (15.3).
- Earnings before tax amounted to € 5.1m (11.8).
- Cash flow from operating activities amounted to € 39.5m (11.3).
- Interest-bearing debt was reduced to € 196.9m from € 232.3 at year-end 2008.
Q1 trends make plain that the derived effects of the financial crisis on housing
and industry activities are quite considerable as we expected, and that Q2 and
Q3 will prove particularly challenging for Solar.
Solar will continue to focus on debt reduction, restructuring and cost
reductions to keep up the strength to maintain our business model.
Apart from the investments necessary in connection with the business development
project "Solar 8000", which involves the implementation of group-standardised
business processes and a switch-over of part of Solar's in-house developed ERP
system to SAP, as well as completion of already initiated investments,
additional investments will be limited to a minimum.
Continuous staff reductions will be made to adjust costs to the market
situation. In combination with the measures realised in 2008, these reductions
will result in total annual cost savings of approximately € 25m.
Expectations for 2009 are maintained at revenue of € 1,350m to € 1,450m and
EBITA of € 25m to € 40m.
Yours faithfully
Solar A/S
Flemming H. Tomdrup
Encl: Quarterly report Q1 2009 pages 1-20 + cover
