8/17/2005 8:00 AM
In its interim report for the period January to June 2005 published today the NIBE Group continues to show strong growth:
“NIBE continues to go from strength to strength in terms of both sales and earnings” says Gerteric Lindquist, CEO for NIBE Industrier. “The second quarter has seen a marked improvement in demand for our products after a somewhat more cautious start to the year.
“Business continues to develop positively for NIBE Heating and NIBE Stoves. These two business areas report good growth and operating margins, and both launched new products before the summer which look very promising as the peak autumn sales season approaches. To meet demand we are in the process of recruiting around 60 new employees for our production plants in Markaryd in the south of Sweden.
“For the NIBE Element business area the picture is less rosy. Despite the fact that volumes continue to improve, a sharp decline in profitability has necessitated the implementation of a rigorous restructuring programme. This involves setting up a structural reserve of SEK 65–70 million to cover costs that will include the transfer of some 200 jobs to Eastern Europe and Asia. On completion of the programme, which is expected to take between 18 and 24 months, the effect will be to increase annual earnings by around SE 40 million.
“In view of the brisk demand we are currently experiencing and the anticipated positive effect of the restructuring programme, our confidence in the future remains firm. However, while it is our opinion that earnings from our day-to-day operations will continue to develop positively throughout 2005, it is clear that the structural reserve for NIBE Element will have an impact on profits both during the third quarter and for the year as a whole,” Gerteric Lindquist concludes.
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