First quarter
* Net turnover amounted to SEK 3,040 M (3,798).
* Operating loss excluding items affecting comparability amounted to SEK 8 M (loss: 11).
* Loss for the period was SEK 21 M (loss: 15) and loss per share was SEK 1.05
(loss: 0.75).
* Cash flow after net investments amounted to SEK 346 M (54).
In a comment on the first quarter, Bilia’s Managing Director Jan Pettersson says:
“The market situation continued to be strained during the quarter. After a slow start of the year we are now experiencing improved demand for used cars and service. New car sales continue to be weak on our three markets, but some improvement can be discerned in Sweden. Tied-up capital continued to decrease, and cash flow after net investments amounted to SEK 346 M. It was also gratifying that the acquisition of BMW’s operation in Göteborg has further strengthened Bilia in Sweden”.
(for calculations, see attached file)
Notable events during 2009
• The outcome of the new issue was to bring in SEK 100 M to Bilia before issue expenses of SEK 6 M by the issuance of subordinated debentures in an amount of SEK 100 M and an associated issue of 5,000,000 warrants. The warrants entitle holders to subscribe to an equal number of shares of Series A in Bilia for SEK 20 each.
• Bilia concluded an agreement with BMW Sverige AB to acquire BMW’s dealership in the Göteborg area. The business is conducted in a well situated facility in Mölndal and has an annual turnover of about SEK 700 M. The company has 67 employees. The purchase consideration, for acquisition of a property and operating assets less operating liabilities, amounts to a total of about SEK 120 M. Approximately SEK 65 M of the purchase consideration is being paid in cash on the date of possession and the remainder in early 2010. The date of possession is 15 May, and the business will be included in Bilia from 16 May 2009.
Further information on the above events and other press information is available at www.bilia.com
First quarter 2009
Demand for new cars was at a much lower level compared with the same period last year. Demand for service and used cars was at a slightly lower level compared with the same quarter last year.
Net turnover amounted to SEK 3,040 M (3,798). For comparable operations, adjusted for exchange rate changes, net turnover decreased by about SEK 840 M or 22 per cent. The decrease is mainly attributable to lower sales of new cars.
Operating loss amounted to SEK 16 M (loss: 10). Items affecting comparability affected the loss by SEK -8 M (1). If items affecting comparability are excluded, operating loss amounted to SEK 8 M (loss: 11). The underlying costs have declined by about SEK 66 M, which partially compensated for lower sales during the quarter. The Service Business reported a profit that was SEK 27 M better than last year, while the Car Business reported a loss that was SEK 29 M worse.
Action programme
In response to the poorer market situation, an action programme was approved during 2008 with a total earnings effect of SEK 272 M per year, of which SEK 239 M is expected to take effect during 2009 (table on page 3). Most of the action programme is concerned with staff reductions. Decisions have been made during 2009 on further action programmes with a total earnings effect of about SEK 46 M. The cost of implementing the action programmes is estimated at about SEK 15 M, of which SEK 4 M has been charged to the first quarter.
Discussions have been held with the trade unions regarding this year’s salary review. In Denmark we have agreed on a salary freeze for 2009, which also applies to all managers in the Group. The salary adjustment in Norway is estimated to amount to about 1 per cent. In Sweden we have agreed with Metall on a maximum reduction in working hours of 20 per cent up until 1 May 2010. Local negotiations are being held with the framework agreement as a basis. The salary adjustment for other employees in Sweden is not expected to exceed 1 per cent.
Items affecting comparability (see table on page 3) amounted to a net of SEK -8 M (1) during the quarter and consist of SEK -7 M (-4) in costs for action programmes and restructuring and SEK -1 M (-1) in costs for disputes. Last year’s result included a gain of SEK 6 M from the sale of a property.
Net financial items amounted to SEK -11 M
(-17). The improvement is mainly attributable to lower net debt. The figure includes a profit share from the indirect shareholding in Volvofinans in the amount of SEK 7 M (5).
Tax amounted to SEK +6 M (+11), which is equivalent to 22 per cent of the quarterly loss before tax.
Loss for the period was SEK 21 M (loss: 15) and loss per share was SEK 1.05 (loss: 0.75). Exchange rate changes only affected the loss marginally.
Total assets decreased during the quarter by SEK 591 M to SEK 4,823 M. The decrease is mainly attributable to lower stocks of new and used cars and to other receivables.
Equity decreased during the quarter by
SEK 13 M, amounting to SEK 1,216 M. The equity/assets ratio amounted to 25 per cent (23).
Investments and disposals amounted to SEK
-69 M (-6). Replacement investments represented SEK 5 M (12), expansion investments SEK 4 M (13), environmental investments SEK 0 M (1) and investments in new construction and additions to properties SEK 2 M (4). Net investments in leased vehicles and finance leases amounted to SEK -80 M (-36).
Cash flow after net investments amounted to SEK 346 M (54). Tied-up capital continued to decrease during the quarter, and the inventories and operating receivables decreased by all of SEK 553 M. Net debt decreased by SEK 285 M to SEK 535 M.
Liquidity was strengthened during the quarter. A new bank agreement was signed with Nordea and Handelsbanken in November 2008. The bank loans amounted to nearly SEK 200 M at the end of March and the unutilised credit facility to just over SEK 500 M.
The number of employees decreased by 176 during the quarter, amounting to 3,377.
The number of employees has declined by 541 during the past 12-month period.
