Gunnebo Year-end results 2011
"2011 has been an eventful year", commented Gunnebo's President and CEO Per Borgvall. "We are continuing to implement the established strategy which means, for example, that we have continued to streamline our business by divesting the fencing business, Perimeter Protection, and have strengthened our core business with the acquisition of South African Alltech and the sales company in Brazil. We have also continued to invest in and lay a firm foundation for growth in China, India and Indonesia.
"The aim of our strategy is to focus fully on our core business, create growth and improve the Group's profitability. 2011 finished strongly with operating profit excluding items affecting comparability of MSEK 138 in the fourth quarter, which equates to a margin of 9.2%. For the year as a whole there was a gross margin of 30.5% (29.3%), an operating margin of 6.3% (3.7%) and a strongly improved net profit of MSEK 230 (178), equating to an increase of 29% on the previous year. Net debt at the year-end amounted to MSEK 299 (261) and the equity ratio totalled 45% (43%). Our strong financial position leaves head-room for further growth initiatives."
The markets outside Europe have shown a strong development during the year with a growth-rate of 21%. In the Asia-Pacific region, growth was 26%. The markets in Northern Europe have shown stable develop-ment during the year, as have some markets in Southern Europe such as France and Italy. However, we do not see any signs of a quick recovery of the negative market development in Spain, which is the background to the cost-savings program communicated in December.
"The strategy that was carved out in 2010 and implemented in 2011 means that we now have a clear focus on our core business. In 2012 Gunnebo will continue to invest in growth, conduct activities which improve the gross margin as well as drive activities leading to greater sales-efficiency in the European sales organisations. To help in this we have a strong financial position, a streamlined business and an organisation prepared to seize the opportunities being offered in the 2012 financial year."
Fourth quarter 2011 results:
• Order intake amounted to MSEK 1,223 (1,206), in constant currency rates it increased by 3%.
• Net sales improved to MSEK 1,492 (1,441), in constant currency rates they increased by 6%.
• Operating profit excluding expenses of a non-recurring nature amounted to MSEK 138 (142) and the operating margin to 9.2% (9.9%).
• Operating profit strengthened to MSEK 166 (65) and the operating margin to 11.1% (4.5%).
• Net financial items improved to MSEK -7 (-18).
• Profit after tax for the period improved and totalled MSEK 153 (146).
• Earnings per share were SEK 1.98 (1.93).
2011 as a whole
• Order intake increased in constant currency rates by 2% and amounted to MSEK 5,091 (5,271).
• Net sales increased in constant currency rates by 3% and amounted to MSEK 5,137 (5,263).
• Operating profit excluding expenses of a non-recurring nature amounted to MSEK 317 (324) and the operating margin to 6.2% (6.1%).
• Operating profit strengthened to MSEK 324 (197) and the operating margin was 6.3% (3.7%).
• Net financial items improved to MSEK -26 (-75).
• Profit after tax for the period improved and totalled MSEK 230 (178).
• Earnings per share were SEK 3.00 (2.35).
• The Board and the President propose a dividend of SEK 1.00 (SEK 0.50) per share.