- Group profit after net financial items amounted to SEK 546 (1,556) million.
- Group profit after tax amounted to SEK 459 (1,422) million, which corresponds to SEK 3.49 (10.85) per share.
INDUSTRIAL AND TRADING OPERATIONS
Third quarter
* Orders received volumes fell to SEK 1,164 (1,626) million, a reduction of 29 percent*.
* Net sales amounted to SEK 1,227 (1,648) million, a reduction of 26 percent*.
* Operating results for continuing operations in industrial and trading operations amounted to SEK 86 (210) million, a reduction of 61 percent*.
January to September
* Orders received volumes fell to SEK 3,927 (5,455) million, a reduction of 29 percent*.
* Net sales amounted to SEK 4,053 (5,308) million, a reduction of 25 percent*.
* Operating results for continuing operations in industrial and trading operations amounted to SEK 210 (590) million,
a reduction of 67 percent*.
* Adjusted for acquisitions and divestitures.
INVESTMENT PORTFOLIO
* The value of the investment portfolio increased by 36.8 percent and at the same time the comparable index (SIXRX) increased by 42.9 percent.
EVENTS AFTER THE REPORT PERIOD
* No significant events have taken place.
INDUSTRIAL AND TRADING OPERATIONS
Results and market
Development in the third quarter indicates that the operations
affected the most by the downward business cycle have passed
the lowest point of it. Operations situated later in the cycle show continued reductions in business volumes compared to earlier quarters. However, there is no significant increase of volumes in the industrial and trading operations, rather a stabilisation.
Starting from a very low level, volumes in the Automotive business area increased in the third quarter, particularly in September. Orders received in Hand Tools in the third quarter were only 12 percent lower than last year, compared to a 15 percent decline over the entire nine months. Hydraulics business area stills faces a challenging market.
While volumes for OEM customers are increasing somewhat compared to previous quarters, demand from customers in the system division has declined. So far the decrease in the Air Treatment business area has been lower than in the engineering industry in general. Operations are, however, situated later in the business cycle compared to the other business areas and the trend is a decrease in orders received.
In Machinery Trading, where demand practically disappeared in the fourth quarter of 2008, there is currently a slow recovery of investments in the industry. Orders received in the third quarter are 49 percent lower than last year. The Engineering Technology business area, which consists of four different operations, mirrors the economy relatively well with a decline by 27 percent so far this year for comparable units.
The total level of orders received in continuing operations amounted to SEK 3,927 (5,455) million. Adjusted for exchange rate fluctuations this is equivalent to a 32 percent decline for comparable units. Invoicing shrunk to SEK 4,053 (5,308) million. The combined operating result for the six business areas was SEK 210 (590) million, entailing an operating margin of 5.2 (11.1) percent. The operating result amounted to 86 (210) million, entailing an operating margin of 7.0 (12.7) percent in the third quarter.
The significantly lower demand has led to extensive cost adjustments in the industrial and trading operations. These cost-saving measures are progressively bringing down costs. Operating margin has thereby improved over the year to 7.0 percent in the third quarter compared to 4.5 percent in the first quarter and 4.3 in the second quarter. If all reductions had been in effect the first nine months, the operating result would have amounted to just under SEK 300 million and the operating margin would have been about 7.4 percent.