Decline in kitchen market

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Nobia Q4 2008


Nobia's sales for the full-year 2008 amounted to SEK 15,991 million
(16,134). Profit after tax amounted to SEK 555 million (958).
Earnings per share amounted to SEK 3.29 (5.50) after dilution. The
proposed divdend amounts to SEK 1.25 (2.50) per share.

Demand for kitchens weakened gradually throughout the year, first in
the new-build segment in the Nordic region and
subsequently in the renovation segment in all of Nobia's primary
markets.

Operating profit amounted to SEK 951 million (1,353) and the
operating margin was 5.9 per cent (8.4). Lower volumes, a changed
sales mix, investments in the store sector and exchange-rate effects
had a negative impact on operating profit for the year. Exchange-rate
effects amounted to approximately negative SEK 110 million,
distributed between translation effects of SEK 30 million and
transaction effects of SEK 80 million, primarily caused by a weaker
GBP and SEK against a strengthened EUR and USD.

Operating cash flow amounted to SEK 42 million (949), which is
attributable to such factors as weaker operating profit and increased
working capital tied-up.

Net debt was charged with acquisitions of stores in Denmark and
Germany during the year.

Comments from the CEO"The weaker economy with a decline in demand has accelerated Nobia's
extensive work on simplifying and enhancing
the efficiency of the Group's structure. Fewer units will lead to
lower costs, efficiency improvements and a rational supply chain. We
are now adapting production by closing or reducing production at
several units. The aim of these and other measures is to
significantly strengthen the cash flow. Nobia has strong brand and
market positions which we will continue to enhance," says President
and CEO Preben Bager.