Period January – March
·Order bookings increased by 7 percent to MSEK 203 (195).
·However, the current order backlog is not expected to generate equivalent sales since several orders most likely will been cancelled or moved forward because of COVID-19.
·Revenue expressed in SEK decreased by 13 percent to MSEK 155 (178).
·Revenue adjusted for currency effects amounted to MSEK 150 (178), i.e. an underlying organic decrease by 16 percent.
·The operating profit amounted to MSEK 11.8 (15.1), adjusted for termination costs for the CEO of MSEK 2.8.
·The operating profit, including termination costs, amounted to MSEK 9.0 (15.1).
·Profit for the period amounted to MSEK 5.8 (11.0).
·Earnings per share amounted to SEK 0.51 (0.97).
Significant events during the quarter
·Revenue was negatively affected during the quarter by the Chinese New Year, which this year fell at the beginning of February and which was succeeded by the COVID-19 pandemic which virtually closed China.
·Deliveries from and to customers in China were resumed at the end of March.
·At the end of March all of Bangladesh, India and Pakistan were closed due to COVID-19.
·Accounting in accordance with IFRS 16 affected the balance sheet total and interest–bearing liabilities by MSEK 54. Refer to Note 3 for a detailed description of its effects.
·On March 4 CEO, Claes af Wetterstedt, resigned at his own request and Krister Magnuson (CFO for 12 years back) assumed the position as acting CEO.
·Termination costs amounting to MSEK 2.8 in connection with the termination of the CEO were charged to the quarter.
·Nilorn has and will use the temporarily redundancy funded by governments and re-negotiate agreements where possible to minimize the fixed costs.
Effects attributable to the COVID-19 pandemic
·The effects of the COVID-19 pandemic will have considerable impact on the demand for the Company’s products.
·It is very difficult to judge if this major impact is of a short-term nature, i.e. a number of months of the effect, or if the effect will be of a more long-term nature.
·We monitor the development closely and take continuous measures to limit the adverse effects on the company.
Events after the balance sheet date
·The Board of Directors proposes no dividend for the 2019 financial year.
FOR FURTHER INFORMATION, CONTACT:
Krister Magnusson, President & CEO
Mobile: +46-704 85 21 14
E-mail: krister.magnusson@nilorn.com
This information is information that Nilörngruppen is under obligation to publish in accordance with the EU Market Abuse Regulation and the Securities Markets Act. The information herein was provided by the contact person named below for publication at 08:00 a.m., 7 April 2020.
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