Fagerhult (FAG) Q3 2011 earnings summary

Executive summary

• 9M orders reached MSEK 2,270; adjusted for acquired operations and currency effects, orders rose 7.7%.

• 9M net sales were MSEK 2,221, up 5% adjusted for acquisitions and currency effects; operating profit reached MSEK 230.8.

• Management cited high Q2–Q3 order intake, record Q3 operating profit, strong cash flow and continued Retail Lighting development.

Financial highlights

• Q3 net sales were MSEK 788.3 (631.5); adjusted for acquired operations and currency effects, sales rose 2%.

• Q3 operating profit was MSEK 107.4 (56.3), the highest for a single quarter; Q3 orders were MSEK 633 (553), up 14% adjusted.

• 9M profit after tax was MSEK 140.8 (69.1); EPS was SEK 11.16 (5.48).

• 9M gross profit was MSEK 739.2 (533.5); operating margin was 10.4% (5.4%).

• 9M operating profit improvement included MSEK 7 from a property sale in the Netherlands; the strong krona reduced profit by MSEK 15 YoY.

Outlook and guidance

• 2011 profit expected to improve significantly vs 2010, supported by restructuring, organic growth, and the LTS and Designplan acquisitions.

• Strategy remained focused on acquisitions, product development, marketing and increased internationalisation.