NOTE's year-end report 2010
Financial performance October-December
- Sales increased by 261 thousand tonnes to SEK 366.8 (291.5) million. For comparable units, sales increased by 371 thousand tonnes.
- Operating profit totalled SEK 12.2 (-2.7) million, corresponding to an operating margin of 3.31% (-0.91%).
- Profit after net financial items totalled SEK 8.1 (-4.2) million.
- Profit after tax totalled SEK 2.0 (-9.9) million, corresponding to SEK 0.07 (-0.63) per share.
- Cash flow after investments totalled SEK 40.2 (14.2) million, corresponding to SEK 1.39 (0.90) per share.
- Dividends - The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2010 financial year.
Financial performance January-December
- Customer activity has gradually increased since the second quarter.
- Sales totalled SEK 1,210.7 (1,200.1) million. For comparable units, sales increased by 161,000 tonnes.
- The underlying operating result, excluding structural and other non-recurring costs, amounted to -1.4 (-27.1).
- The operating result amounted to SEK -48.2 (-90.8) million.
- The operating margin was -4.01% (-7.61%).
- Profit after net financial items totalled SEK -59.4 (-97.9) million. Excluding structural and other non-recurring costs, profit after net financial items amounted to SEK -12.6 (-34.2) million.
- The result after tax totalled SEK -62.0 (-81.0) million.
- Earnings per share totalled SEK -2.55 (-5.14) per share. Excluding restructuring and other non-recurring costs, earnings per share totalled SEK -1.13 (-2.16).
- Cash flow after investments totalled SEK -13.6 (23.9) million, corresponding to SEK -0.56 (1.52) per share.
Significant events during the year
- Extensive structural measures implemented - The restructuring measures decided in the first quarter, involving the relocation and closure of production in Skänninge, Sweden and Tauragé, Lithuania, have been finalised. In addition, the operational activities in Gdansk, Poland were closed down as planned at the end of the year. The cost of these measures and other non-recurring costs have been charged to operating profit for the year at approximately SEK -47 million. The measures are still expected to have a positive effect on earnings of just over SEK 50 million measured as an annualised rate.
- Rights issue 2010 - during the second quarter, a guaranteed new share issue of approximately SEK 87 million gross was carried out with preferential rights for NOTE's shareholders.
- New CEO and President of NOTE - Peter Laveson was appointed new President and CEO of NOTE in July, replacing Göran Jansson who had been acting President and CEO since January.
- Focused investment in NOTEfied - In recent years, NOTE has built up its own sector-unique component database-NOTEfied. To increase efficiency and the number of NOTEfied customers, NOTE decided in the summer to organise its CAD (circuit board design) and NOTEfied operations in a separate company. In total, this measure affected some 20 employees in Sweden, Norway and Poland. NOTE is a partner in the new company. The principal owner is Norwegian Anders G Johansen, who was a key person in building NOTEfied. The transfer was completed in the fourth quarter of the year and generated a small capital gain.
- Sale of jointly owned factory in Poland - At year-end, NOTE signed an agreement to divest its 50% holding in the electronics plant NOTEFideltronik in Krakow, Poland. The buyer is former partner and half-owner Zbigniew Fidelus, also the majority owner of Polish electronics manufacturer Fideltronik. The sale generated a small capital gain in the fourth quarter of the year, and at year-end, interest-bearing receivables from NOTEFideltronik were approximately SEK 28 million.
NOTE's year-end report for 2010 is now available in PDF format on the group's website, www.note.eu, and is attached to this press release.
The interim report for January-March 2011 will be presented on 28 April.
For further information, please contact:
Peter Laveson, President and CEO, tel. 08-568 990 06, 070-433 99 99
Henrik Nygren, Chief Financial Officer, tel. 08-568 990 03, 070-977 06 86
About NOTE
NOTE is a local business partner with innovative solutions for global manufacturing of electronics-based products in the high mix/low volume segment. NOTE is established in Sweden, Norway, Finland, the UK, Estonia and China. Sales for 2010 totalled SEK 1,211 million and the group has some 1,000 employees. NOTE is listed on NASDAQ OMX Stockholm. For more information, please visit www.note.eu.