Fagerhult (FAG) Q2 2012 earnings summary

Executive summary

• H1 orders received MSEK 1,659, up 8% adjusted for acquisitions and currency; net sales MSEK 1,539, up 4% on the same basis.

• H1 operating profit fell to MSEK 105.0 from 123.4; weaker Retail Lighting and negative sales mix weighed on results.

• H1 earnings per share were SEK 4.73, down from SEK 5.94; operating margin was 6.8% versus 8.6%.

Financial highlights

• Q2 net sales were MSEK 764.0 versus 739.6; adjusted for acquisitions and currency, sales increased 1%.

• Q2 operating profit was MSEK 44.7 versus 70.7; prior-year profit included a MSEK 7 property-sale gain. Q2 margin was 5.9% versus 9.6%.

• H1 net profit was MSEK 59.6 versus 74.9; Q2 net profit was MSEK 27.0 versus 43.7.

• H1 gross profit was MSEK 478.0 versus 461.3; profit after financial items was MSEK 82.0 versus 105.5.

Outlook and guidance

• Indoor and Outdoor Lighting, later-cycle activities, had relatively positive near-term sales-volume prospects; continued economic uncertainty clouded the outlook.

• Continued significant investment in product development and marketing, alongside increased internationalisation and focus on productivity and cost reductions.

• Ongoing LED technology transition is driving product-development investment to support future market positioning.