First six months
* Net turnover amounted to SEK 7,165 M (7,079).
* Profit before tax amounted to SEK 86 M (29).
* Net profit amounted to SEK 65 M (26) and earnings per share to SEK 3.00 (1.15).
Second quarter
* Net turnover amounted to SEK 3,856 M (3,883).
* Operating profit excluding items affecting comparability amounted to SEK 30 M (29).
* Profit before tax amounted to SEK 45 M (20).
* Net profit amounted to SEK 34 M (16) and earnings per share to SEK 1.55 (0.70).
Commenting on the result for the first six months, Bilia’s Managing Director Jan Pettersson says:
”The result improved during the first half of the year, but the second quarter failed to live up to our expectations. The work of concentrating operations at fewer dealerships, first and foremost in Norway, but also in Denmark, has had a negative effect on the result for the Service Business. We are also experiencing a shortage of mechanics on these markets. The Car Business is, however, experiencing positive trends on all markets and the order backlog exceeds last year’s figures by more than 30 per cent”.
(For table see attached file)
Notable events during 2007
· Bilia’s facility in Kista in northern Stockholm stopped selling Kia in March.
· In March, Bilia started a joint venture with DnB NOR in Norway under the name Bilia Lease.
· Bilia acquired the business operations run by Bilgruppen i Enköping Sala AB and Bilgruppen i Kungsängen AB. The purchase price was SEK 28 M and these operations have been part of the Bilia Group since June.
· Bilia acquired all the trading subsidiaries of Hans Persson Bil AB. The purchase price was SEK 331 M and these operations have been part of the Bilia Group since May.
· In accordance with the AGM’s decision, the share capital was reduced in July by SEK 16,699,000, following the withdrawal of 1,669,900 of the company’s shares. The number of shares following this withdrawal totals 21,459,255.
Second quarter 2007
Overall demand for cars and service in Bilia’s market areas was at a good level.
Net turnover during the quarter amounted to SEK 3,856 M (3,883). Adjusted for exchange rate changes and comparable operations, net turnover decreased by SEK 252 M or 7 per cent. This decrease is mainly attributable to a reduction in the number of new car deliveries.
Operating profit amounted to SEK 50 M (21). Items affecting comparability reduced the profit by SEK 20 M (reduction: 8). The Car Business reported a higher profit than last year, in spite of lower car deliveries. The shortage of mechanics and the cost of restructuring in Norway and Denmark had a negative impact on the result for the Service Business. The result from customer financing amounted to SEK 24 M (20). This result does not include the gross profit relating to the rental income from long-term leasing for cars sold with repurchase agreements.
Items affecting comparability (see the table on page 3) amounted to a net of SEK 20 M during the quarter (-8). During the quarter, Bilia’s Norwegian operation changed its pension plan from being benefit based to premium based for employees under the age of 52. This change affected the result by a total of SEK 22 M (-). The result also includes SEK -2 M (-7) for the cost of disputes and last year SEK 1 M in closure costs.
Net financial items amounted to SEK -5 M (-1). This includes a profit share of SEK 6 M (3) from the shareholding in Volvofinans. Interest charges have increased as a result of increases in net loan debt and interest levels.
Tax expense totalled SEK 11 M (4), corresponding to a tax rate of 24 per cent (20). This low rate of tax can be explained by the fact that the profit share from the shareholding in Volvofinans is tax free.
Net profit amounted to SEK 34 M (16) and earnings per share to SEK 1.55 (0.70). Exchange rate changes only affected the profit marginally.
Total assets increased during the quarter by SEK 920 M to SEK 6,484 M. This increase is mainly attributable to the acquisitions of Hans Persson and Bilgruppen.
Equity decreased during the quarter by SEK 138 M, amounting to SEK 1,584 M at the end of the quarter. A dividend of SEK 172 M was paid to shareholders during the quarter. The equity/assets ratio was 24 per cent (32).
Investments and disposals amounted to SEK
-104 M (131). Replacement investments represented SEK 14 M (6), expansion investments SEK 17 M (20), environmental investments SEK 1 M (1) and investments in new construction and additions to properties SEK 3 M (-9). Net investments in lease vehicles and finance leases amounted to SEK -139 M (113).
Cash flow after net investments amounted to SEK -117 M (-74). The acquisition of Hans Persson and Bilgruppen affected cash flow by SEK -353 M (17), while the corresponding figure for the sale of lease cars to Volvofinans was SEK 123 M (-). Net debt increased during the quarter by SEK 584 M to SEK 698 M.
The number of employees increased during the quarter by 487, amounting to 3,930. The increase can be primarily attributed to the acquisitions of Hans Persson and Bilgruppen.
First six months of 2007
Net turnover amounted to SEK 7,165 M (7,079). Adjusted for exchange rate changes and comparable operations, net turnover decreased by SEK 198 M or 3 per cent. This decrease is mainly attributable to a reduction in the number of new car deliveries.
Operating profit amounted to SEK 90 M (27). Items affecting comparability reduced the profit by SEK 18 M (reduction: 9). The improvement can be attributed to an improved result for the Car Business, due primarily to higher margins on the sale of cars.
The result from customer financing excluding the gross profit relating to the rental income from long-term leasing for cars sold with repurchase agreements amounted to SEK 48 M (43).
Items affecting comparability (see the table below) amounted to a net of SEK 18 M (-9).
Net financial items amounted to SEK -4 M (2). This includes a profit share of SEK 11 M (7) from the shareholding in Volvofinans.
Tax expense totalled SEK 21 M (8), corresponding to a tax rate of 24 per cent (28).
Net profit amounted to SEK 65 M (26) and earnings per share to SEK 3.00 (1.15). Exchange rate changes only affected the profit marginally. The result from Catena, which has now been wound up, was included in the result for 2006 and was then SEK 5 M and SEK 0.25 per share.
Investments and disposals amounted to
SEK -191 M (191). Replacement investments represented SEK 18 M (13), expansion investments SEK 22 M (28), environmental investments SEK 2 M (2) and investments in new construction and additions to properties SEK 5 M (1). Net investments in lease vehicles and finance leases amounted to SEK -238 M (147).
Cash flow after net investments amounted to SEK -225 M (-125). The acquisition of business operations affected cash flow by SEK -353 M
(-106), while the corresponding figure for the sale of lease cars to Volvofinans was SEK 123 M (-).
Net debt increased since the start of the year by SEK 729 M to SEK 698 M.
(For complete report see attached file)
