Continued restructuring and efficiency enhancement

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Nobia Q1 ENG <http://hugin.info/133488/R/1408379/361112.pdf>


Demand  in Nobia's principal  markets in the  first quarter remained weak. Sales
for  the first quarter amounted to SEK 3,456 million (3,777). Organic growth was
negative  1 per cent. Profit was charged with expenses of SEK 52 million for the
ongoing  restructuring and efficiency  measures in the  operations in France and
costs  of  SEK  72 million  related  to  the divestment of Culinoma and Pronorm.
Operating  loss was SEK  24 million (loss: 34) before  these structural expenses
and  SEK 148 million (loss:  272) after structural expenses.  Loss after tax was
SEK  134 million (loss:  259), corresponding to  a loss  per share  of SEK 0.80
(loss:  1.55). Cash flow was strengthened by SEK 491 million through divestments
and amounted to SEK 442 million (pos: 114).


Nobia's sales trend was burdened by negative currency effects of SEK 252 million
(pos: 263). Operating loss excluding restructuring costs amounted to SEK 24
million (loss: 34), corresponding to an operating margin of negative 0.7 per
cent (neg: 0.9). Due to continued weak demand, the Nordic and Continental
Europe markets recognised largely unchanged earnings, while the UK posted a
small improvement. The first quarter is seasonally weak for Nobia.
Nobia's earnings continued to be adversely affected by currency effects,
approximately negative SEK 10 million (neg: 30). In addition to structural
expenses, primarily lower volumes had a negative effect on earnings, while lower
costs for direct material and price increases impacted earnings positively.
Return on capital employed including structural expenses amounted to 2.7 per
cent (6.2) over the past twelve-month period.
The loss per share for the period, including structural expenses, amounted to
SEK 0.80 (loss: 1.55).

Comments from the CEO
"Demand remains weak, although we did note certain bright points in the new
builds market in the Nordic region and cautious optimism in the UK. The UK
operations, Nobia's largest, continued to strengthen their market position, with
increased kitchen sales in all channels. Extensive structural measures in
France, which will lead to more efficient logistics and a more attractive
customer offering, had a heavy impact on earnings for the quarter. Otherwise,
work at Nobia is characterised by the major change in strategy and organisation
announced earlier, which will create an effective Nobia," says Preben Bager,
President and CEO.

New President in Nobia
The Nobia Board of Directors appointed Morten Falkenberg as the new President
and CEO. He will take office not later than 15 October 2010 and will succeed
Preben Bager who previously announced his intention to step down during the
year.



[HUG#1408379]