Fagerhult (FAG) Q3 2013 earnings summary

Executive summary

• Q1-3 orders were MSEK 2,345.5; adjusted for currency and acquisitions, up 1% YoY. Net sales were MSEK 2,239.5, down 1% on the same adjusted basis.

• Q3 operating profit reached a record MSEK 108.4, with a 13.4% margin; higher market share, improved gross margins and cost savings supported performance.

Financial highlights

• Q1-3 net sales declined 3% reported to MSEK 2,239.5; operating profit was MSEK 193.7 versus MSEK 193.4, despite MSEK 11 of negative sales and currency impacts.

• Q1-3 net profit rose to MSEK 124.5 from MSEK 114.5; EPS was SEK 9.87 versus SEK 9.08.

• Q3 net sales increased to MSEK 809.4 from MSEK 774.9; currency-adjusted sales rose 3%, mainly from increased market share.

Outlook and guidance

• Management expected gradual market improvement toward year-end and into 2014, while noting the market remained difficult to assess and recovery could be protracted.

• Retail Lighting was expected to recover earlier than Indoor and Outdoor Lighting; continued significant investment in product development, marketing and internationalisation was planned.