Fagerhult (FAG) Q3 2012 earnings summary

Executive summary

• Jan–Sep net sales were MSEK 2,314, up 4% after adjusting for acquired operations and currency; orders rose 4% on the same basis to MSEK 2,385.

• Jan–Sep operating profit fell to MSEK 193.4 from MSEK 230.8; operating margin was 8.4% versus 10.4%, reflecting weaker Retail Lighting mix and currency effects.

• Q3 sales were MSEK 774.9, at a similar level YoY after adjustments; operating profit declined to MSEK 88.4 from MSEK 107.4.

Financial highlights

• Jan–Sep gross profit was MSEK 729.5 versus MSEK 739.2; operating expenses included selling costs of MSEK 431.2 and administrative costs of MSEK 130.0.

• Jan–Sep profit after financial items was MSEK 158.0 versus MSEK 200.6; net profit was MSEK 114.8 versus MSEK 140.8.

• Jan–Sep EPS was SEK 9.10 versus SEK 11.16; Q3 EPS was SEK 4.38 versus SEK 5.23.

• Operating profit included non-recurring income of MSEK 11 and restructuring expenses of MSEK 12; the prior-year comparative included MSEK 7 non-recurring income.

Outlook and guidance

• For 2012, short-term sales-volume prospects in Indoor and Outdoor were considered relatively positive due to their later position in the business cycle; continued uncertainty clouded the downturn outlook.

• Continued investment in product development and marketing, alongside increased internationalisation, was planned despite difficult market conditions.