Nine months
* Net turnover amounted to SEK 9,862 M (10,945).
* Operating profit excluding items affecting comparability was SEK 104 M (loss: 25).
* Profit for the period was SEK 30 M (42) and earnings per share SEK 1.45 (2.05).
* Cash flow after net investments amounted to SEK 578 M (429).
Third quarter
* Net turnover amounted to SEK 3,253 M (3,132).
* Operating profit excluding items affecting comparability SEK 66 M (loss: 28).
* Cash flow after net investments amounted to SEK 17 M (93).
* The Board of Directors is considering recommending to the AGM that a dividend be paid to the shareholders.
In a comment on the third quarter, Bilia’s Managing Director Jan Pettersson says:
“Demand for new cars is increasing in Sweden and Norway, but is still depressed in Denmark. The slightly improved market situation, along with substantially lower costs and tied-up capital, have led to greatly improved results. The positive development of the Swedish operation is particularly gratifying.”
(For table, 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 operation has been a part of Bilia since 16 May 2009.
• The long-standing dispute between Bilia subsidiary Säfveån AB (formerly Probo) and the litigation company Pacta was resolved when the parties agreed on a settlement. The settlement entails a cost for Säfveån of SEK 23 million, which was charged to third-quarter earnings.
Further information on the above events and other press information is available at www.bilia.com.
Third quarter 2009
Demand for new cars increased during the quarter compared with the second quarter, but was lower compared with the same period last year. Demand for service was at a slightly lower level compared with the same quarter last year.
Net turnover amounted to SEK 3,253 M (3,132). For comparable operations and adjusted for ex-change rate changes, net turnover decreased by about SEK 115 M or 4 per cent. The decrease is mainly attributable to lower sales of new cars.
Operating profit amounted to SEK 38 M (4). Items affecting comparability reduced the profit by SEK 28 M (increase: 32). If items affecting comparability are excluded, operating profit amounted to SEK 66 M (loss: 28). The underlying costs have declined by about SEK 70 M, which is the main explanation for the earnings improvement. The margin in used car sales continued to strengthen during the quarter and was at a considerably higher level than last year, which contributed to the earnings improvement.
Action programme
In response to the poorer market situation, it was decided early in 2008 to adopt measures to reduce costs. A decision was made in Denmark during the quarter to adopt further measures, which are estimated to reduce costs by about SEK 15 M per year. Action programmes adopted in 2008 and 2009 are estimated to give rise to an earnings effect of about SEK 333 M per year, of which SEK 270 M is expected to take effect during 2009 (table on page 3). Most of the action programme is concerned with staff reductions.
Items affecting comparability (see table on page 3) amounted to a net of SEK -28 M (32) during the quarter, consisting of SEK -23 M in arbitration cost relating to the Pacta dispute, SEK -1 M (-7) in costs for disputes and SEK -4 M in action programme costs. Last year’s earnings included a gain of SEK 39 M from sale of property.
Net financial items amounted to SEK -5 M (-19). The improvement is mainly attributable to lower net debt. The figure includes the profit share from the indirect shareholding in Volvofinans Bank in the amount of SEK 3 M (5).
Profit for the period amounted to SEK 27 M (3) and earnings per share to SEK 1.35 (0.15). Exchange rate changes only affected the profit marginally.
Total assets decreased during the quarter by SEK 220 M to SEK 4,430 M. The decrease is mainly attri-butable to lower other receivables and leased vehicles.
Equity increased during the quarter by SEK 35 M, amounting to SEK 1,271 M. The equity/assets ratio amounted to 29 per cent (23).
Investments and disposals amounted to SEK -46 M (-16). Replacement investments represented SEK 1 M (9), expansion investments SEK 3 M (9), environmental investments SEK 1 M (0) and invest-ments in new construction and additions to proper-ties SEK 4 M (3). Net investments in leased vehicles and finance leases amounted to SEK -55 M (-37).
Cash flow after net investments amounted to SEK 17 M (93). Net debt decreased by SEK 76 M during the quarter to SEK 264 M.
Liquidity continued to be strong during the quarter. At the end of September, loans of SEK 5 M and an unutilized credit facility of SEK 673 M were report-ed in Nordea and Handelsbanken.
The number of employees decreased by 74 during the quarter, amounting to 3,300.
(For full report, see attached file)
