Year-end report January-December 2005
Profit after tax for the full year was SEK -54.9 (13.6) million, corresponding to earnings per share of SEK -5.71 (1.50). During the first half of the year, profit was negatively affected by restructuring costs, provisions for impairment losses and write-downs of accounts receivable and inventories totalling approximately SEK 128 million.
"NOTE succeeded in growing by 36 per cent in the year despite extensive restructuring measures, which is a sign of strength. We have now laid a good foundation for achieving our profitability target, while seeing good potential for continued growth," commented NOTE's CEO Arne Forslund on the report.
"After completing its structural work, NOTE has started to reposition itself to be more active on the growing EMS market in 2006. We have signed strategic co-operation agreements and made several key recruitments. We have strengthened our management and control systems and now have a stable platform for future growth. Also important was the continued transfer of volume production to the Group's units in Eastern Europe and the incorporation of the three new units in Skellefteå, Hyvinkää (Finland) and Pärnu (Estonia), all of which performed well. Capital and cost rationalisation has been the focus of the second half of 2005. The fourth quarter cash flow was strong and the operating result shows that the restructuring measures taken at the beginning of the year have now led to the desired improvements in results", summarises Arne Forslund.
"We believe that the opportunities to continue to gain market share in 2006 are good. The long-term target of an EBT margin of 6 per cent remains," Arne Forslund concludes.
For further information, please contact:
Arne Forslund, CEO of NOTE AB, telephone +46 705 - 477 477
Gunilla Olsson, CFO NOTE AB, telephone 0709 - 50 80 71