(2008 figures in brackets)
Revenue, results and cash flows from operating activities all exceeded
expectations in Q2. Also, H1 debt reduction proved highly satisfactory. Thus,
adjustments are made to the full-year expectations for revenue and EBITA.
Q2 2009 highlights:
• Revenue amounted to € 344.6m (377.5).
• Organic growth was -17.2% (10.4).
• EBITA amounted to € 7.5m (14.9).
H1 2009 highlights:
• Revenue totalled € 717.8m (738.3).
• Organic growth amounted to -12.3% (8.7).
• EBITA amounted to € 15.1m (30.2).
• Earnings before tax amounted to € 9.6m (23.3).
• Cash flows from operating activities totalled € 61.9m (12.3).
• Net interest-bearing debt was reduced to € 191.4m from € 229.0m at the end of
2008.
Restructuring costs had a negative impact on earnings, totalling € 1.6m in Q2
and € 2.8m in H1.
As continuous staff reductions are made to adjust costs to the market
conditions, the combined future reductions and those already implemented in
2008 will mean total an-nual savings of approximately € 26m.
Moreover, both revenue and profit exceeded expectations in Q2, while several
markets show signs of stabilising revenue in relation to industry customers.
However, activity lev-els for electrical contractors are expected to continue
their decline, while increasing sales to one of the group's recently added
customer groups, heating, water and sanitary con-tractors, is expected to have
a continued positive impact on organic growth.
Consequently, Solar will adjust its expectations to revenue between € 1,365m
and € 1,430m compared to previous announcements of € 1,350m to € 1,450m.
Moreover, EBITA is adjusted to between € 30m and € 38m, up from € 25m to € 40m.
Solar will continue reducing interest-bearing debt, while implementing
restructuring measures and cost reductions to keep up the strength to adhere to
the business model.
Yours faithfully,
Solar A/S
Flemming H. Tomdrup
Enclosure: Quarterly report Q2 2009 page 1-20 + cover
