GN's Q4 and full year consolidated results were in line with the guidance
provided in the Q3 report of November 6, 2008.
GN ReSound generated solid positive organic revenue growth in the second half
of the year. The results in GN Netcom were adversely impacted by the global
economic crisis.
Chairman of GN's Supervisory Board Per Wold-Olsen says: “2008 was a challenging
year for GN. We have implemented a new corporate structure, initiated a number
of change initiatives and taken significant actions to cut costs. The programs
initiated are beginning to deliver results, our product pipeline is promising
and I believe we are setting the scene for a positive development in GN in the
years to come.”
Full Year 2008 Results
• Total revenue was DKK 5,624 million.
• EBITA was DKK 65 million inclusive of non-recurring costs of DKK 107 million.
• Earnings before tax were DKK (83) million.
• Net interest-bearing debt was DKK 1,592 million at the end of the year.
• The Supervisory Board recommends that no dividend will be paid for the
financial year 2008.
Fourth Quarter 2008 Results
• Total revenue was DKK 1,464 million.
• EBITA was DKK 27 million.
• The free cash flow was positive at DKK 35 million.
• Revenue in GN Netcom was DKK 615 million equivalent to (23)% organic growth.
• GN Netcom EBITA was DKK (18) million or DKK 31 million exclusive of
non-recurring costs.
• Revenue in GN Resound was DKK 843 million equal to organic growth of 10%.
• GN ReSound EBITA was DKK 56 million.
Additional Highlights
• GN Netcom has reached a settlement with ATL in the battery replacement case.
The outcome is as expected and will have no material effect on the financial
statements.
• The DPTG/TPSA arbitration proceedings progress according to the agreed time
schedule. As of February 25, 2009, the arbitration tribunal issued directions
to the experts on how to calculate the claim without prejudice to a final
decision. This does not give GN cause to change the claim.
• As previously announced, CEO of GN Netcom Toon Bouten's contract of
employment expires at the end of September 2009. GN Store Nord and Toon Bouten
have been in dialogue as to the possible extension of his contract of
employment and have now concluded that it will not be extended beyond September
2009.
Outlook for 2009
GN is proactively preparing for challenging market conditions in 2009.
Significant cost reductions are planned in both GN Netcom and GN ReSound. Total
EBITA is expected to be around the same level as EBITA in 2008 despite the fact
that revenue is expected to decline significantly to a level around DKK 5
billion in line with the expected market developments.
• Total EBITA for GN: Around the 2008 EBITA level based on a revenue scenario
of around DKK 5 billion.
• EBITA for GN Netcom: Around DKK (100) million including non-recurring costs
based on a revenue scenario of around DKK 2 billion.
The FAST program will deliver considerable higher cost reductions than
previously expected. The cost reductions will be in the magnitude of at least
DKK 300 million annually.
• EBITA for GN ReSound: Around DKK 200 million based on a revenue scenario of
around DKK 3 billion.
GN ReSound is implementing further significant restructuring measures in 2009
and preliminary estimates indicate a reduction of the annual cost base of more
than DKK 200 million as an end-of-2009 run rate with significant effect already
in 2009.
• EBITA for Other: Around DKK (30) million.
• GN expects a significant, positive free cash flow.
All expectations are expressed in approximate numbers and are subject to
significant uncertainty due to the global economic crisis.
For further information please contact:
Jens Bille Bergholdt
Vice President Finance, IR & Comm.
GN Store Nord A/S
Tel.: +45 45 75 02 70
