Gunnebo interim report January-September 2011

Gunnebo interim report January-September 2011

 

Comments by Gunnebo's President and CEO Per Borgvall
“The operating profit for the third quarter is in line with our
long-term improvement in results, although slightly below last year,
which can be explained by differences in deliveries during the quarter
for a single large order in Africa/the Middle East. Operating profit and
profit after tax have both improved during the year.
Our fencing business Perimeter Protection was divested during the third
quarter, in line with our strategy. This means that while we continue to
focus on our core business with higher refinement values, we are also
gradually shifting the point of gravity of our business to markets
outside of Europe. Five years ago, sales outside of Europe accounted for
just over 10% of Group sales, while at the end of the third quarter that
figure has risen to 32%.
Growth outside of Europe is around 20%, and in the Asia/Pacific region
it is approximately 25%. We are therefore continuing to invest in growth
markets that are important to us. One example is the acquisition of a
South African entrance control company during the third quarter.
In Europe we have noted good development of our German operation during
the year - a very pleasing development as this market has previously
represented a loss-maker for us. The sales company in Italy is
developing well and the French market is continuing to develop stably,
while a continued decline is evident in Spain.
It is hard to determine the effect on the Group of the uncertain market
conditions in Europe, especially bearing in mind that the need for
security tends not to decline but rather increase in times of
uncertainty. Thanks to our financial position we are well-placed to deal
with the situation, and have scope for further growth initiatives.”
Third quarter 2011

  · Order intake amounted to MSEK 1,175 (1,208), in constant currency
rates it was unchanged.
  · Net sales increased in constant currency rates by 1% and amounted to
MSEK 1,247 (1,278).
  · Operating profit excluding items of a non-recurring nature amounted
to MSEK 74 (88) and the operating margin to 5.9% (6.9%).
  · Operating profit amounted to MSEK 61 (78) and the operating margin
to 4.9% (6.1%).
  · Net financial items improved to MSEK -5 (-16).
  · Profit after tax for the period improved and totalled MSEK 44 (39).
  · Earnings per share were SEK 0.58 (0.51).

January-September 2011

  · Order intake increased in constant currency rates by 2% and amounted
to MSEK 3,868 (4,065).
  · Net sales increased in constant currency rates by 2% and amounted to
MSEK 3,645 (3,822).
  · Operating profit excluding items of a non-recurring nature amounted
to MSEK 179 (182) and the operating margin to 4.9% (4.8 %).
  · Operating profit improved to MSEK 158 (132) and the operating margin
to 4.3% (3.5%).
  · Net financial items improved to MSEK -19 (-57).
  · Profit after tax for the period improved and totalled MSEK 77 (32).
  · Earnings per share were SEK 1.02 (0.42).

Full report is attached to this press release.

The interim report will be presented by Gunnebo's President and CEO Per
Borgvall and CFO Fredrik Östman at a phone conference October 28, 10.00
CET. To participate in the conference, please sign up using the link
below. When registering, you will receive a phone number and a password:
https://eventreg2.conferencing.com/webportal3/reg.html?Acc=572424&Conf=2
06016 (https://eventreg2.conferencing.com/webportal3/reg.html?Acc=572424
&Conf=206016)

On Gunnebo's website you will also find presentation material for
download appr. 30 minutes prior to the conference starts.

GUNNEBO AB (publ)
Group Communications
For further information, please contact:
Per Borgvall, President and CEO Gunnebo AB, tel. +46 10 2095 000, or
Fredrik Östman, CFO Gunnebo AB, tel. +46 10 2095 037, or
Karin Wallström, Communication & IR Director Gunnebo AB, tel. +46 10
2095 026, or e-mail
karin.wallstrom@gunnebo.com (karin.wallstrom@gunnebo.com)

www.gunnebo.com (http://www.gunnebo.com/)
Gunnebo discloses the information provided herein pursuant to the
Swedish Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 08.01 CET on
October 28, 2011.