Fagerhult (FAG) Q1 2012 earnings summary

Executive summary

• Q1 orders received were MSEK 798, up 17% reported and 12% after adjusting for acquired operations and currency effects; sales rose 12% reported and 6% adjusted.

• Operating profit increased to MSEK 60.3 from 52.7, with margin at 7.8% versus 7.6%; profit after tax was MSEK 32.6 and EPS SEK 2.58.

Financial highlights

• Net sales were MSEK 775.2 (693.2); gross profit was MSEK 245.9 (215.5), and operating profit was MSEK 60.3 (52.7).

• Profit after financial items was MSEK 44.8 (44.4); net profit was MSEK 32.6 (31.2), and diluted and basic EPS were SEK 2.58 (2.47).

• Orders exceeded sales by MSEK 23; orders were MSEK 798 versus 680, up 12% adjusted for Designplan and currency effects.

• Sales outside Sweden were MSEK 582.1 (505.5), representing 75% (73%) of net sales.

Outlook and guidance

• Product development, marketing and international expansion remain priorities; Indoor and Outdoor lighting prospects were positive short term given their later position in the construction cycle.

• Retail lighting, positioned earlier in the cycle, showed signs of weakening; financial turmoil made construction-sector cycle forecasts difficult.