Report
Presentations
Press release
Interim Report January - March 2014
NET ASSET VALUE AND THE LATOUR SHARE
• The net asset value rose to SEK 220 per share, compared to SEK 212 per share at the beginning of the year. This is an increase of 3.8 per cent. By comparison, the Stockholm Stock Exchange's Total Return Index (SIXRX) increased by 5.0 per cent. The net asset value was SEK 223 per share at 2 May.1)
• The total return on the Latour share was 13.8 per cent for the period, which is significantly better than the SIXRX index which reached 5.0 per cent.
INDUSTRIAL OPERATIONS
• Nord-Lock is reported as a new business area from the start of the first quarter of 2014. Nord-Lock was previously a business entity within Latour Industries.
• The industrial operations recorded incoming orders of SEK 1,856 m (1,668), which represents a 4 per cent increase for comparable entities adjusted for foreign exchange effects.
• The industrial operations' net sales increased to SEK 1,746 m (1,605), which represents a 3 per cent increase for comparable entities adjusted for foreign exchange effects.
• The operating profit before restructuring costs was SEK 124 m (131), which corresponds to an adjusted operating margin of 7.1 (7.9) per cent for continuing operations.
• Latour Industries acquired Elvaco AB, which has 20 employees and generates an annual turnover of more than SEK 60 m.
GROUP
• The Group's profit after financial items was SEK 406 m (328).
• The Group's profit after tax was SEK 376 m (294), which is equivalent to SEK 2.36 (1.85) per share.
• Net debt at the end of March was SEK 2,164 m and is equivalent to 5.8 per cent of the market value of total assets.
INVESTMENT PORTFOLIO
• The value of the investment portfolio rose 4.9 per cent during the quarter, which is in line with the comparable index (SIXRX), which increased by 5.0 per cent.
SUBSEQUENT EVENTS
• Hultafors Group acquired Specma Tools from Latour Industries.
1) The calculation of the net asset value on 2 May 2014 was based on the value of the investment portfolio at 1 p.m. on 2 May and the same values as on 31 March were used for the unlisted portfolio.
Comments from the CEO
"The increase in orders that we could announce in the autumn of 2013 is now gradually having an effect on the amounts invoiced. For obvious reasons, it is the early-cycle operations that are exhibiting strong organic growth. Our new business area, Nord-Lock, is at the top, with more than 11 per cent organic growth adjusted for currency. However, it varies between our operations. Our largest business area Swegon is a late cycle operation and has recorded an organic decline of more than 4 per cent.
Overall, incoming orders were up by 11 per cent to SEK 1,856 m (1,668), of which 4 per cent is organic growth. The order book is 24 per cent higher than at the end of the year. Invoicing increased by 9 per cent to SEK 1,746 m (1,605). 3 per cent of this is organic growth. The operating profit was SEK 124 m (127), which is equivalent to a 7.1 (7.9) per cent operating margin. I am pleased about the strong earnings trend in Nord-Lock, the Hultafors Group and in REAC within Latour Industries. Despite this, these positive results are not enough to compensate for the decline in earnings reported by Swegon as a result of the drop in volumes. The value of Swegon's incoming orders is however more than SEK 50 m higher than the invoiced figure achieved in the first quarter, and this development is consistent with Swegon's late business cycle pattern with which we are familiar. Swegon's cooling product operations, which have a seasonally weak first quarter, have also expanded as a result of last year's acquisitions.
Our wholly-owned operations, which previously comprised four business areas, have now been grouped into five. The new business area is Nord-Lock, previously a business entity within Latour Industries, which has now attained the size and structure necessary to function as a fifth business area. It is pleasing and a good sign that Latour Industries can be used successfully as a nursery for new business areas. Latour Industries can now focus on continuing to develop other smaller entities within the business area.
We are maintaining our focus on developing more new products and enhancing our positions in priority markets. Nord-Lock seems to be gaining market share, as is REAC with its Medical Rehab products. The fact that incoming orders are generally on the increase is also a positive sign, although I have the feeling that for several of the operations this is more a result of the economic climate than that we are gaining market share.
The focus on forward-looking acquisitions is also unchanged. We have acquired Elvaco for Latour Industries this quarter. The acquisition affords us another opportunity in the area to streamline and optimise energy costs and indoor climate in buildings.
On the whole, our listed holdings have continued to perform well. Coupled with a strong stock market performance, this means that we continue to see good growth in the market value of our holdings. The value of the investment portfolio increased by 4.9 per cent during the quarter, which was in line with SIXRX, the comparative index. On the acquisition front, Assa Abloy continued to make a number of acquisitions. Loomis also made a significant acquisition with the purchase of VIA MAT in Switzerland. The net asset value increased by 3.8 per cent during the quarter."
INVESTMENT AB LATOUR
Jan Svensson
President and CEO
For further information please contact:
Jan Svensson, President and CEO, Tel. +46 705-77 16 40 or
Anders Mörck, CFO, Tel. +46 706-46 52 110
This information constitutes information which Latour is required to disclose under the Swedish Securities Market act. The information was submitted for publication on 5 May 2014, at 8:30 a.m.