First six months
* Net turnover amounted to SEK 7,813 M (7,163).
* Operating profit amounted to SEK 56 M (89).
* Net profit amounted to SEK 39 M (65) and earnings per share to SEK 1.90 (3.00).
Second quarter
* Net turnover amounted to SEK 4,015 M (3,854).
* Operating profit excluding items affecting comparability amounted to SEK 14 M (28).
* Net profit amounted to SEK 54 M (34) and earnings per share to SEK 2.65 (1.55).
* Cash flow after net investments amounted to SEK 282 M (-117).
In a comment, Bilia’s Managing Director Jan Pettersson says:
“The second-quarter results were affected positively by property sales, but underlying earnings were also better than during the first quarter. The Car Business continues to show a heavy loss, however. The new-car volume is low. The margin on used cars is still low but has improved slightly during the second quarter, particularly in Sweden. The Service Business developed positively and reports better quarterly earnings compared with last year. In addition to the previously announced cost reductions, a savings programme of about SEK 100 M will be implemented, mainly in Sweden.”
(For table see attached file)
Notable events during 2008
• Bilia concluded an agreement on the sale of properties in Copenhagen to a subsidiary of Corem Property Group, which is listed on the NGM exchange. The price of the properties is SEK 278 M, and the date of possession is 1 September 2008. Long-term leases are being signed in conjunction with the sale, at the same time as Bilia is providing two seller notes for a total of SEK 45 M with terms of 5 and 8 years, respectively. An agreement has been concluded for the sale of another property in Copenhagen to another buyer, with date of possession 1 August 2008. Bilia’s business operation has moved to other existing facilities in Copenhagen, so the property is being sold without a tenant. The price of the property is SEK 39 M. The sales are expected to generate a gain after tax of about SEK 35 M, which will be recognised in the third quarter.
Previously reported notable events
• Bilia sold a property in Västerås.
• Bilia acquired all shares in Bilforum AS and Bilforum Finans AS, which represent Volvo, Renault and Land Rover in the Stavanger area.
• On 20 February, Bilia’s subsidiary Säfveån won a longstanding dispute in the District Court of Gothenburg. The opposite party, Pacta, appealed the judgement on 11 March to the Court of Appeal for Western Sweden.
• Bilia concluded an agreement on the sale of properties in Sweden to a subsidiary of Corem Property Group.
• Bilia acquired the real estate company A/S Selandia Ejendomsselskab. At the same time one of the properties, Lyngby, was divested. The carrying amount of the property portfolio amounts to about SEK 300 M, of which the property in Lyngby accounts for about SEK 30 M.
Further information on the above events is provided at www.bilia.com.
Second quarter 2008
Demand for cars decreased during the quarter and was at a lower level compared with the same period last year. Demand for service was unchanged compared with the first quarter but slightly weaker compared with the same quarter last year.
Net turnover amounted to SEK 4,015 M (3,854). Adjusted for exchange rate changes and comparable operations, net turnover decreased by SEK 137 M or 4 per cent. The decline is mainly attributable to lower sales of new cars.
Operating profit amounted to SEK 66 M (48). Items affecting comparability reduced the profit by SEK 52 M (20). The poorer result compared with last year is mainly attributable to lower new cars sales and a lower margin in used car sales.
Items affecting comparability (see table on page 4) amounted to SEK 52 M (20) during the quarter and consist of a gain of SEK 79 M
(-) from the sale of properties, SEK -24 M (-) in structural costs, mainly in Denmark, and SEK -3 M (-2) in costs for disputes. Last year includes SEK 22 M as a result of a change in the pension plan in Norway.
Net financial items amounted to SEK -17 M
(-3). This includes a profit share of SEK 5 M (6) from the indirect shareholding in Volvofinans. The decrease is due to higher net debt and a higher interest rate level during the quarter compared with last year.
Tax amounted to SEK +3 M (-12). The positive tax result is mainly attributable to the fact that the profit includes non-taxable gains from property sales of about SEK 65 M.
Net profit amounted to SEK 54 M (34) and earnings per share to SEK 2.65 (1.55). Exchange rate changes only affected the profit marginally.
Total assets increased during the quarter by SEK 294 M to SEK 6,734 M. The increase is attributable to higher current receivables at mid-year.
Equity decreased during the quarter by SEK 108 M as an effect of the payment of SEK 164 M in dividends to shareholders in April. The equity/assets ratio amounted to 21 per cent (24).
Investments and disposals amounted to SEK 9 M (-104). Replacement investments represent¬ed SEK 11 M (14), expansion investments SEK 9 M (17), environmental investments SEK 1 M (1) and investments in new construction and additions to properties SEK 4 M (3). Net investments in leased vehicles and finance leases amounted to SEK -16 M (-139).
Cash flow after net investments amounted to SEK 282 M (-117). Sales and acquisitions of properties had a positive impact on cash flow of SEK 194 M. Net debt decreased by SEK 42 M during the quarter to SEK 982 M.
The number of employees decreased by 120 during the quarter, amounting to 3,798.
First six months of 2008
Net turnover amounted to SEK 7,813 M (7,163). Adjusted for exchange rate changes and comparable operations, net turnover decreased by SEK 217 M or 3 per cent. The decline is mainly attributable to lower sales of new cars.
Operating profit amounted to SEK 56 M (89). Items affecting comparability reduced the profit by SEK 53 M (18). The poorer result compared with last year is mainly attributable to lower new cars sales, lower margins in used car sales and weak first-quarter earnings in the Service Business in Denmark.
Items affecting comparability (see table on page 4) amounted to SEK 53 M (18) during the quarter and consist of a gain of SEK 85 M
(-) from the sale of properties, SEK -28 M (-1) in structural costs, mainly in Denmark, and SEK -4 M (-3) in costs for disputes. Last year includes SEK 22 M as a result of a change in the pension plan in Norway.
Net financial items amounted to SEK -34 M
(-2). This includes a profit share of SEK 10 M (11) from the indirect shareholding in Volvofinans. The decrease is due to higher net debt and a higher interest rate level during the first six months compared with last year.
Tax amounted to SEK +14 M (-22). The positive tax result is mainly attributable to the fact that the profit includes non-taxable gains from property sales of about SEK 70 M.
Net profit amounted to SEK 39 M (65) and earnings per share to SEK 1.90 (3.00). Exchange rate changes only affected the profit marginally.
Investments and disposals amounted to SEK 3 M (-191). Replacement investments represent¬ed SEK 23 M (18), expansion investments SEK 22 M (22), environmental investments SEK 2 M (2) and investments in new construction and additions to properties SEK 8 M (5). Net investments in leased vehicles and finance leases amounted to SEK -52 M (-238).
Cash flow after net investments amounted to SEK 336 M (-225). Sales and acquisitions of properties had a positive impact on cash flow of SEK 237 M. Net debt decreased by SEK 240 M during the quarter to SEK 982 M.
(For complete report see attached file)
