NOTE's Interim Report January-March 2005
NOTE is completing the extensive restructuring initiated in autumn 2004, including the transfer of Swedish volume production to the group's plants in Central Europe. Net sales of SEK 325.0 (286.1) m are reported for the first quarter, with operating profit of SEK -61.4 (23.9) m. Profit is negatively impacted by restructuring and other non-recurring items of SEK 62 m. NOTE was listed ...
In June, NOTE was listed on the O-list of the Stockholm Stock Exchange, with the aim of being one of Europe's leading EMS suppliers by 2009. In the autumn, the group initiated restructuring, including an extensive reorganisation with the relocation of the group's warehousing and sourcing function to Poland, and the relocation of most volume production to the group's plants in Central Europe. This change has resulted in around a third of the workforce in Sweden being made redundant.
"We are in a transition phase, with establishments on new markets, and in December we adjusted our sales forecast upwards to approximately SEK 1.6 billion for 2005. At the same time, we have carried out extensive restructuring, which unfortunately, in line with previous market communications, has also resulted in significant costs in the first quarter," says Erik Stenfors, NOTE's CEO. "In addition to costs associated with personnel, we have also recognised impairment losses on machinery and fixed assets in this quarter. We are completing our restructuring, and in return expect a lower cost base going forward."
The operating result has been negatively affected by restructuring costs of approximately MSEK 56. Of these costs, MSEK 31 are direct restructuring costs. Furthermore, the Board of Directors has decided on write-downs of tangible fixed assets and inventories of MSEK 22. Costs for integration of new units amount to approximately MSEK 3. In addition to this, provisions for possible accounts receivable have been made in the amount of MSEK 6.
Further information is provided by:
Erik Stenfors, President and CEO of NOTE; +46 (0)176-799 01 or +46 (0)709-50 80 70
Gunilla Olsson, CFO NOTE; 0176-799 05 or 0709-50 80 71