Continued margin improvements

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Nobia Q3 2010

(All figures in brackets refer to the corresponding period in 2009)

Sales for the third quarter amounted to SEK 3,228 million (3,568). Organic
growth was negative 1 per cent. Operating profit, excluding restructuring costs
of SEK 76 million (14), amounted to SEK 153 million (107), corresponding to an
operating margin of 4.7 per cent (3.0). Profit after tax and restructuring costs
totalled SEK 42 million (37), corresponding to earnings per share of SEK 0.25
(0.22). Operating cash flow amounted to SEK 283 million (117).

Nobia's sales during the third quarter declined as a result of negative currency
effects, the sale of Pronorm and somewhat negative organic growth. Operating
profit improved by SEK 46 million, mainly due to implemented price increases,
reduced costs and more efficient production. Currency effects of SEK 10 million
(neg: 20) had a positive effect on earnings, of which negative SEK 10 million
(pos: 7) in translation effects and positive SEK 20 million (neg: 27) in
trans­action effects. Return on capital employed including restructuring costs
amounted to 4.1 per cent (1.0) over the past twelve-month period. Operating cash
flow strengthened and amounted to SEK 283 million (117), primarily due to lower
tied-up working capital.

Comments from the CEO
"Demand in the Nordic region is increasing, particularly in the new builds
segment. In the UK, the propensity to renovate is being dampened by the economic
climate, but Nobia continues to strengthen its market position there.
Restructuring work in Hygena is proceeding according to plan and refurbishment
of the entire store chain is being planned. In line with the established
strategy, we are continuing to rationalise and further develop the organisation,
with its new building blocks, Commercial (brands, sales channels), Operations
(range, production, sourcing, logistics) and Shared Services (IT, HR, Finance),
with the aim of building a stronger Nobia," says Morten Falkenberg, President
and CEO since October 6.


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