PartnerTech Year-end Report January - December 2011


PartnerTech Year-end Report January - December 2011

Fourth quarter 2011

• Net sales were SEK 637.9 million (617.6)

• Operating profit was SEK 29.2 million (6.5)

• Profit after tax was SEK 10.2 million (8.8)

• Earnings per share after tax totaled SEK 0.81 (0.70)

• Cash flow after investments amounted to SEK 99.9 million (16.2)

• PartnerTech signed an agreement in October concerning production

  and delivery of products for Vestas Control Systems A/S

January-December 2011

• Net sales were SEK 2,322.2 million (2,181.1)

• Operating profit was SEK 47.3 million (-15.3)

• Profit after tax was SEK 5.2 million (-19.6)

• Earnings per share after tax totaled SEK 0.41 (-1.55)

• Cash flow after investments amounted to SEK 117.9 million (-31.4)

• The equity/assets ratio was 39.4% (37.7)

• The board proposes that the annual general meeting distribute

   no dividend (0) for fiscal year 2011

A word from the CEO

PartnerTech’s sales for 2011 totaled SEK 2,322.2 million, an increase of 9.2% in
local currencies compared with 2010, and operating profit improved
substantially. Higher earnings confirm the impact of the activities that we have
been conducting to ensure sustainable profitability in all markets, reduce
capital tied up and set the stage for growth. We upgraded our internal processes
during the year in order to streamline our operations and thereby minimize costs
and capital tied up. We have strengthened our sales organization, which allows
us to focus more on strategically selected customers. Our goal is to increase
the proportion of sales at higher levels in the value chain, reinforcing our
position as a full-scale technology and service partner. Among the action and
restructuring programs that we announced previously, we have now completed
consolidation of our entire British business in Cambridge. The programs have
also included our units in Vellinge and Moss. Meanwhile, we have continued to
pursue a restructuring strategy aimed at expanding our share of production in
low-cost Eastern European and Asian countries so as to more fully satisfy the
needs of our customers. At the same time, we are committed to maintaining our
customer centers in all key strategic markets. The centers are vital to our
ability to provide our customers with optimum service through close
collaboration and leading-edge technical skills, along with flexible and
cost-effective production processes.

Fourth quarter sales totaled SEK 637.9 million, a 5.6% increase in local
currencies from the same period of 2010, and our operating margin was 4.6%. The
improved operating margin was largely due to internal streamlining, which
reduced costs and capital tied-up, as well as higher sales. The increase in
sales was a direct reflection of our fortified sales organization.

Developments during the year have been positive for PartnerTech but as I said in
the third quarter, uncertainty and volatility in the global markets make it
difficult to foresee the future. With those challenges in mind, we will
insistently pursue our strategy of adapting and streamlining our organization in
order to boost our profitability in each market we serve. The results of our
restructuring and ongoing internal improvement efforts have been promising so
far. The good relationships that we have developed with our customers also
represent a vitally important success factor; much of our effort goes to
nurturing and building on that collaboration. Although a great deal remains to
be done, the progress that we have made – along with our competitive
organizational structure and our broad-based global range of services – provides
a firm foundation for the future.

Leif Thorwaldsson

President and CEO

For complete report, please see attached file.

For additional information, please call:

Leif Thorwaldsson, President and CEO, tel: +46 40-10 26 41

Åke Bengtsson, CFO, tel: +46 40-10 26 42

Attachments