Year-end 2008
* Net turnover amounted to SEK 14,280 M (15,402).
* Net loss for the year was SEK 110 M (profit: 100) and loss per share SEK 5.35
(EPS: 4.75).
* Cash flow after net investments amounted to SEK 581 M (-590).
* No dividend is proposed (SEK 8.00).
Fourth quarter
* Net turnover amounted to SEK 3,335 M (4,518).
* Operating profit excluding items affecting comparability amounted to SEK 9 M (70).
* Loss before tax amounted to SEK 146 M (profit: 38).
* SEK 140 M in structural costs and impairment losses etc. were charged to earnings.
* Cash flow after net investments amounted to SEK 152 M (-223).
In a comment on the fourth quarter, Bilia¡¦s Managing Director Jan Pettersson says:
¡§The decline in the market was dramatic, and against that background we are happy to report positive underlying operating earnings and strong cash flow. We took measures early during the year to reduce costs and tied-up capital, giving us a solid platform on which to face a very tough 2009¡¨.
(for table see attached file)
Notable events after the third quarter
• An extraordinary shareholders¡¦ meeting resolved to issue subordinated debentures in an amount of no more than SEK 107.3 M with an associated issue of no more than 5,364,813 warrants. The issue is secured up to an amount of SEK 100 M by a subscription commitment and guarantee from Investment AB Öresund.
• The outcome of the new issue was to bring in SEK 100 M to Bilia, before issue expenses of 6 SEK M, by the floating of a debenture loan 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.
Notable events reported previously during 2008
• 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 sold.
• Bilia concluded an agreement on the sale of four properties in Copenhagen to a subsidiary of Corem Property Group.
• The Market Court convicted Bilia and seven other Volvo dealers in Skåne and Blekinge of violating the competition rules. Bilia was ordered to pay a restraint-of-trade fine of SEK 6 M, which was just under 5 per cent of the Swedish Competition Authority¡¦s original fine of SEK 122 M.
Further information on the above events and other press releases are provided at www.bilia.com
Fourth quarter 2008
Demand for cars decreased sharply during the quarter and was at a considerably lower level compared with the same period last year. Demand for service also declined slightly during the quarter and was at a lower level compared with the same period last year.
Net turnover amounted to SEK 3,335 M (4,518). Adjusted for exchange rate changes and comparable operations, net turnover decreased by about SEK 1,267 M or 28 per cent. The decrease is mainly attributable to lower sales of new cars.
Operating loss amounted to SEK 117 M (profit: 47). Items affecting comparability affected the loss by SEK -126 M (-23). If items affecting comparability are excluded, operating profit amounted to SEK 9 M (70). A previously approved action programme began to take effect, and costs were reduced by about SEK 70 M, whereof about SEK 40 M is attributable to the action programme, partially compensating for the lower sales during the quarter. The poorer result compared with last year is attributable to lower new car sales and a lower margin in used car sales. The Service Business reported a better result.
Action programme
In response to the poorer market situation, an action programme was approved during the year with a total earnings effect of SEK 272 M per year, of which SEK 239 M is expected to take effect during 2009 (table on page 4). Most of the action programme is concerned with staff reductions. The total cost of implementing the action programme is estimated at about SEK 124 M, of which SEK 96 M was charged to earnings in the fourth quarter of 2008.
Items affecting comparability (see table on page 4) amounted to a net of SEK -126 M (-23) during the quarter and consist of SEK -96 M
(-15) in costs for the action programme, SEK -29 M (-) in impairment of acquired surplus values, mainly goodwill, and SEK -1 M (-8) in costs for disputes.
Net financial items amounted to SEK -29 M
(-9). The deterioration is mainly attributable to costs of SEK 10 M in connection with the signing of a new bank agreement and issue expenses of SEK 6 M. The figure includes the profit share from the indirect shareholding in Volvofinans in the amount of SEK 7 M (6).
Tax amounted to an expense of SEK 6 M (expense: 16). The tax expense during the quarter is attributable to impairment of tax assets by a net of SEK 45 M.
Net loss amounted to SEK 152 M (profit: 19) and loss per share to SEK 7.40 (EPS: 0.95). Exchange rate changes only affected the profit marginally.
Total assets decreased during the quarter by SEK 650 M to SEK 5,414 M. The decrease is mainly attributable to lower stocks of new and used cars and lower trade receivables.
Equity decreased during the quarter by SEK 155 M, amounting to SEK 1,229 M. The equity/assets ratio amounted to 23 per cent (21).
Investments and disposals amounted to SEK 62 M (-2). Replacement investments represented SEK 7 M (24), expansion investments SEK 23 M (17), environmental investments SEK 3 M (2) and investments in new construction and additions to properties SEK 3 M (10). Net investments in leased vehicles and finance leases amounted to SEK 26 M (-55).
Cash flow after net investments amounted to SEK 152 M (-223). Freeing tied-up capital was a priority within the Group during the year, and inventories and other receivables decreased by all of SEK 486 M during the quarter. Net debt decreased by SEK 134 M to SEK 820 M.
Liquidity was strengthened during the quarter. A new bank agreement with a total credit limit of SEK 930 M was signed with Nordea, Handelsbanken and Skandinaviska Enskilda Banken during the month of November. The credit limit had been amortised by SEK 202 M by the end of January 2009. The unutilised credit facility amounted to just under SEK 300 M at the end of January 2009, which is judged to be sufficient for current business activities.
The number of employees decreased by 141 during the quarter, amounting to 3,553.
Full year 2008
Demand for cars and service declined during the year and was at a lower level compared with 2007.
Net turnover amounted to SEK 14,280 M (15,402). Adjusted for exchange rate changes and comparable operations, net turnover decreased by about SEK 2,158 M or 14 per cent. The decrease is mainly attributable to lower sales of new cars.
Operating loss amounted to SEK 57 M (profit: 169). Items affecting comparability affected the loss by a net of SEK -41 M (-8). The poorer result compared with last year is mainly attributable to lower new car sales and lower margins in used car sales. The Service Business reported a slightly better result.
Items affecting comparability (see table on page 4) amounted to SEK -41 M (-8) and consist of a gain of SEK 124 M (-) from the sale of property, SEK -124 M (-18) in costs for the action programme, SEK -29 M (-) in impairment of acquired surplus values, mainly goodwill, and SEK -12 M (-12) 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 -82 M
(-19). The deterioration is mainly attributable to increased net debt and a higher interest rate level. Net financial items for the year have been charged with costs of SEK 10 M in connection with the signing of a new bank agreement and issue expenses of SEK 6 M. The figure includes the profit share from the indirect shareholding in Volvofinans in the amount of SEK 22 M (22).
Tax amounted to SEK +28 M (-44). This year¡¦s tax calculation includes non-taxable revenue of about SEK 110 M from the sale of property and impairment of tax assets by a net of SEK 45 M.
At the end of the year, tax-loss carryforwards in foreign operations amounted to about SEK 200 M, which is not offset by a recorded tax asset.
Net loss for the year was SEK 110 M (profit: 100) and loss per share SEK 5.35 (EPS: 4.75). Exchange rate changes reduced the profit by SEK 5 M.
Total assets decreased by SEK 1,629 M to SEK 5,414 M. The decrease is mainly attributable to sale of properties, fewer cars with guaranteed residual values (leased vehicles), lower invent¬tories and lower trade receivables.
Equity amounted to SEK 1,229 M (1,507).
Investments and disposals amounted to SEK 49 M (-64). Replacement investments represent¬ed SEK 39 M (52), expansion investments SEK 54 M (48), environmental investments SEK 5 M (4) and investments in new construction and additions to properties SEK 14 M (31). Net investments in leased vehicles and finance leases amounted to SEK -63 M (-199).
Cash flow after net investments amounted to SEK 581 M (-590). The cash flow for the year comes mainly from lower working capital (SEK 309 M) and sale of property (net about SEK 345 M). Net debt decreased by SEK 402 M to SEK 820 M.
The number of employees decreased by 408 during the quarter, amounting to 3,553.
(for complete report see attached file)
