NOTE's Interim Report January-June 2005
Net sales increased by 27 per cent to SEK 728.7 million (575.1). Operating profit amounted to SEK - 109.0 million (46.4), with non-recurring costs and provisions for impairment totalling approximately SEK 128 million.
In autumn 2004 and the first quarter of 2005, NOTE conducted an extensive reorganisation including the relocation of volume production to Central Europe, and the introduction of an equipment supply unit in Gdansk, Poland. The integration of the new organisation was completed in the first half of 2005, and incurred non-recurring costs that were charged to the first quarter. During the second quarter, write-downs in the range of SEK 65-75 million were previously announced in connection with a review of customer contracts and inventories, among other things; a write-down of SEK 66 million has now been made. Excluding the write-down, the Group reports a profit of SEK 18.4 million for the second quarter, and SEK 19 million for the whole period (January - June 2005).
In August, NOTE initiated a collaboration with Jaltek Systems, active in the UK. A representative office was also established in southern China to rationalise the equipment sourcing process for NOTE's units in Europe.
"We have worked with the organisation during the first half of the year and we can now say that the change process has been completed, both in terms of measures and costs. We have a positive cash flow and I can also state that, adjusted for non-recurring costs, we have a profit of approximately SEK 18 million for the second quarter," says Kjell-Åke Andersson, CEO.