AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Elanders

Quarterly Report Oct 21, 2010

3038_10-q_2010-10-21_c54502a0-46db-4c53-a486-672e9c1b4d3f.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

Press release from Elanders AB (publ) 2010-10-21

January-September

  • Net sales fell by 6.7 % totaling MSEK 1,215.0 (MSEK 1,302.0).
  • Operating result amounted to MSEK -81.8 (MSEK -31.7), of which one-off items amounted to MSEK -39.7 (MSEK -16.4) net.
  • Result before taxes was MSEK -104.1 (MSEK -56.5).
  • Net result was MSEK -82.5 (MSEK -37.2) or SEK -8.29 per share (SEK -3.78 per share). 1)
  • Operating cash flow amounted to MSEK -85.5 (MSEK 34.0), of which acquisitions were MSEK -26.8 (MSEK 0.0).
  • The new share issue with preferential rights has been carried out and raised MSEK 208.1 after issue expenses. The new share issue has strengthened Elanders' financial position.
  • In July Elanders signed a contract to acquire the operations in the packaging printing plant Printpack in Germany with annual net sales of about MSEK 100.
  • In September 55 persons were given notice of redundancy in Sweden. In connection to this structural costs of MSEK 58.5 have been charged to operating costs, primarily costs for staff reductions.
  • At the end of September a new, two-year credit agreement was signed with the banks.
  • The forecast for 2010 of a result before taxes of around MSEK -110 including costs of MSEK 80 for restructuring during the second half of the year remains unchanged. The forecast for 2011 is a positive result before taxes.

The third quarter

  • Net sales increased by 6.6 % totaling MSEK 405.8 (MSEK 380.7).
  • Operating result amounted to MSEK -61.8 (MSEK -21.4), of which net one-off items amounted to MSEK -54.5 (MSEK 0.0).
  • Result before taxes was MSEK -70.5 (MSEK -27.8).
  • Net result amounted to MSEK -52.0 (MSEK -16.6) or SEK -5.04 per share (SEK -1.67 per share).1)
  • Operating cash flow amounted to MSEK -14.1 (MSEK -33.0), of which acquisitions were MSEK -23.6 (MSEK 0.0).

1) There was no dilution during the given periods.

COMMENTS BY THE CEO

During the third quarter we could clearly see signs of recovery on the market, which was what we predicted at the end of the second quarter. The largest contribution to the increased sales during the third quarter is from industry and automotive customers. The trend of increasing demand for packaging, marketing material and personalized products and a lessening demand for traditional print such as user manuals, educational material and books is unmistakable. The changes that are presently being made in Elanders are completely in line with this trend.

A German packaging printing plant, Printpack, was acquired in the third quarter as a part of Group strategy to expand in packaging production. Printpack has been integrated far faster than expected and this has already generated synergies with Elanders' existing operations in Germany.

The new share issue which was decided during the quarter was carried out and raised about MSEK 208 after issue expenses. This capital will strengthen Elanders' financial position and create the prerequisites necessary for the continued expansion and development of the company.

The structural changes announced in the interim report for the second quarter, primarily concerning the Swedish operations, are now being implemented and are aimed at reducing the number of employees and optimize resource utilization in order to create a more competitive Elanders. In connection to this some production capacity has been moved from Western Europe to Eastern Europe and South America. This process will continue in the fourth quarter.

Magnus Nilsson President and Chief Executive Officer

NET SALES AND RESULT

January-September
MSEK 2010 2009 2008
Net sales 1,215.0 1,302.0 1,570.0
Operating expenses -1,296.8 -1,333.7 -1,523.3
Operating result -81.8 -31.7 46.7
Net financial items -22.3 -24.8 -37.0
Result after financial items -104.1 -56.5 9.7
July-September
MSEK 2010 2009 2008
Net sales 405.8 380.7 516.5
Operating expenses -467.6 -402.1 -526.0
Operating result -61.8 -21.4 -9.5
Net financial items -8.7 -6.4 -13.5
Result after financial items -70.5 -27.8 -23.0

PARENT COMPANY

During the period the parent company has provided joint Group services. The average number of employees was 18 (11) and at the end of the period 14 (12).

GROUP

Net sales and result

January-September

Consolidated net sales fell by MSEK 87.0 to MSEK 1,215.0 (MSEK 1,302.0) or 6.7 %. The decrease was primarily due to reduced volumes for the most part in China and in Sweden as well as a stronger Swedish crown compared to the Euro and the British pound. If the currency rates had been the same as in this period the previous year, the reduction in net sales would have been around MSEK 26 or MSEK 43 in comparable units.

The operating result worsened by MSEK 50.1 to MSEK -81.8 (MSEK -31.7), mainly due to developments in the Chinese operations and the structural costs primarily in Sweden. One-off items of MSEK -39.7 (MSEK - 16.4) are included in operating results.

In September 55 persons were given notice of redundancy in Sweden and in connection with this structural costs of MSEK 58.5 were charged to the operating result in the third quarter. These reductions in personnel in combination with previous notices of redundancy and people leaving of their own accord during the year reduced Swedish operations by about 80 people on a full year basis, compared to 2009.

Third quarter

Group net sales increased by MSEK 25.1 to MSEK 405.8 (MSEK 380.7) or 6.6 %. If the currency rates had been the same as in this period the previous year the increase would have been about MSEK 45, of which MSEK 28, i.e. 7.4 %, represents organic growth.

The operating result worsened by MSEK 40.4 to MSEK -61.8 (MSEK -21.4), of which MSEK -54.5 (MSEK 0.0) was one-off items, primarily attributable to restructuring the Swedish operations.

Cleared of one-off items the operations showed a better operating result in the third quarter compared to the same period last year and the reason is lower operating losses in the Swedish operations and generally positive developments in the Group's foreign operations.

Personnel

January-September

The average number of employees during the period was 1,506 (1,594), of which 454 (520) were in Sweden. At the end of the period the Group had 1,556 (1,541) employees. In June Jonas Brännerud took over as MD for the Swedish operations and is now a member of Group Management.

Third quarter

The average number of employees during the period was 1,544 (1,533), of which 439 (480) were in Sweden.

After the end of the reporting period

Andréas Wikner has been appointed Chief Financial Officer after having been acting Chief Financial Officer.

Investments and depreciation

January-September

Investments for the period totalled MSEK 52.2 (MSEK 46.4), of which MSEK 26.8 (MSEK 0.0) was acquisitions, of which Printpack was MSEK 23.6 and the acquisition of the remaining minority in the Brazilian operations was MSEK 3.2. Operations in Printpack is consolidated from 1 August.

The Group's depreciations and write-downs for the period amounted to MSEK 76.5 (MSEK 76.9).

Third quarter

Investments for the period totalled MSEK 31.3 (MSEK 16.1), of which MSEK 23.6 (MSEK 0.0) were acquisitions. The Group's depreciations and write-downs amounted to MSEK 32.3 (MSEK 25.7).

Financial position, cash flow, equity ratio and financing

The Group's net debt amounted to MSEK 722.4 (MSEK 835.4) and operating cash flow for the first nine months amounted to MSEK -85.5 (MSEK 34.0) with MSEK -26.8 (MSEK 0.0) attributable to acquisitions. Operating cash flow for the third quarter amounted to MSEK -14.1 (MSEK -33.0), of which acquisitions were MSEK -23.6 (MSEK 0.0). Equity amounted to MSEK 825.3 (MSEK 786.6), which resulted in an equity ratio of 40.4 % (37.8 %).

At the end of September a new, two-year credit agreement was signed with the banks.

Risks and uncertainties

Elanders divides risks into circumstantial risks (the future of printing, business cycles, structure and the competition), financial risks (currency, interest, financing and credit) as well as operational risks (customer concentration, operations, operating costs, contracts, disputes, insurance and other risk management as well as other operational risks). These risks, together with a sensitivity analysis, are described in detail on pages 43-45 in the Annual Report 2009. No significant changes have occurred that have changed the risks as reported there.

Seasonal variations

The Group's net sales, and thereby income, are affected by the seasonal variations described on page 45 of the Annual Report 2009. Among other information found there is the fact that, historically, almost a third of the Group's net sales occur in the fourth quarter.

Events after the balance sheet date

No significant events have taken place after the balance sheet date and the date this report was signed.

Forecast

The forecast for 2010 of a result before taxes of around MSEK -110 including costs of about MSEK 80 for restructuring during the second half of the year remains unchanged. A positive result before taxes is expected in 2011.

Accounting principles

The interim report for the Group has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and for the parent company in accordance with the Annual Accounts Act.

A number of amendments of existing standards, new interpretations etc. have been made by Elanders starting 1 January 2010. Of them the IFRS 3 Business Combination (amended) has had a certain impact on some of our financial reports since new acquisitions must be dealt with according to this standard.

In all other aspects the same accounting principles and calculation methods as those in the last Annual Report have been used.

OTHER INFORMATION

Nomination committee

The following are members of the nomination committee for the Annual General Meeting on 5 May 2011:

Carl Bennet (chairman) Carl Bennet AB
Göran Erlandsson Representative for minor shareholders
Hans Hedström Carnegie Funds
Nils Petter Hollekim Odin Funds
Caroline af Ugglas Investment AB Latour/Skandia Liv

No changes have been made in the nomination committee since the Annual General Meeting on 26 April 2010. Please find the nomination committee's contact information on the company's website www.elanders.com under "Corporate Governance".

Future reports from Elanders

Annual Accounts Report 28 January 2011 Annual Report 7 April 2011 Interim report first quarter 2011 5 May 2011 Interim report second quarter 2011 13 July 2011 Interim report third quarter 2011 21 October 2011

Mölnlycke, 21 October 2010

Magnus Nilsson President and Chief Executive Officer

Further information can be found on Elanders' website www.elanders.com or via e-mail [email protected]

Questions concerning this report can be made to:

Magnus Nilsson Andréas Wikner
President and CEO Chief Financial Officer
Phone +46 31 750 00 00 Phone +46 31- 750 00 00

Elanders AB (publ)

(Company ID 556008-1621) P.O. Box 137 SE-435 23 Mölnlycke, Sweden Phone +46 31 750 00 00

This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.

Review report

We have reviewed this report for the period 1 January to 30 September 2010 for Elanders AB (publ), company reg.no. 556008-1621. The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Gothenburg 21 October 2010

PricewaterhouseCoopers AB

Mikael Eriksson Johan Rippe Authorised Public Accountant Authorised Public Accountant Auditor in charge

Group - Income statements

Third quarter
2010 2009
405.8 380.7
-376.1 -319.1
29.7 61.6
-88.1 -86.3
27.4 10.3
-29.5 -5.0
-1.3 -2.0
-61.8 -21.4
-8.7 -6.4
-70.5 -27.8
18.5 11.2
-52.0 -16.6
-52.0 -16.3
- -0.3
-5.04 -1.67
10,308 9,765
19,530 9,765

1) Earnings per share before and after dilution. No adjustment of the historic number of shares has been made since the new share issue in 2010 did not entail any bonus issue element.

2) Earnings per share calculated by dividing the result for the year by the average number of outstanding shares during the period.

January-September Last Full year
MSEK 12 mon
2010 2009 2009
Net sales 1,215.0 1,302.0 1,669.7 1,756.7
Cost of products and services sold -1,058.2 -1,063.7 -1,424.1 -1,429.6
Gross profit 156.8 238.3 245.6 327.1
Sales and administrative expenses -249.4 -281.3 -357.4 -389.3
Other operating income 52.3 29.6 62.0 39.3
Other operating expenses -38.4 -15.8 -55.8 -33.2
Income from jointly controlled entities -3.1 -2.5 -4.6 -4.0
Operating result -81.8 -31.7 -110.2 -60.1
Net financial items -22.3 -24.8 -33.5 -36.0
Result after financial items -104.1 -56.5 -143.7 -96.1
Income taxes 21.6 19.3 24.0 21.7
Result for the period -82.5 -37.2 -119.7 -74.4
Attributable to:
- parent company shareholders -82.5 -36.9 -119.6 -74.0
- minority interests - -0.3 -0.1 -0.4
Earnings per share, SEK 1) 2) -8.29 -3.78 -12.08 -7.57
Average number of shares, in thousands 9,946 9,765 9,901 9,765
Outstanding shares at the end of the period, in thousands 19,530 9,765 19,530 9,765

1) Earnings per share before and after dilution. No adjustment of the historic number of shares has been made since the new share issue in 2010 did not entail any bonus issue element.

2) Earnings per share calculated by dividing the result for the period by the average number of outstanding shares during the period.

Group - Statements of comprehensive income

Third quarter
MSEK
2010 2009
Result for the period -52.0 -16.6
Other comprehensive income
Translation differences, net after tax -47.6 -58.1
Cash flow hedges, net after tax 0.1 0.0
Hedging of net investment abroad, net after tax 1.5 0.9
Other comprehensive income, net after tax -46.0 -57.2
Total comprehensive income for the period -98.0 -73.8
Total comprehensive income attributable to:
-parent company shareholders -98.0 -73.7
-minority interests - -0.1
MSEK January-September Last
12 mon
Full year
2010 2009 2009
Result for the period -82.5 -37.2 -119.7 -74.4
Other comprehensive income
Translation differences, net after tax -70.2 -55.1 -54.6 -39.5
Cash flow hedges, net after tax 0.1 0.1 0.5 0.5
Hedging of net investment abroad, net after tax 5.3 1.1 5.0 0.8
Other comprehensive income, net after tax -64.8 -53.9 -49.1 -38.2
Total comprehensive income for the period -147.3 -91.1 -168.8 -112.6
Total comprehensive income attributable to:
-parent company shareholders -147.3 -90.9 -168.7 -112.3
-minority interests - -0.2 -0.1 -0.3

Group - Statements of cash flow

Third quarter
January
September
Last
12
Full year
MSEK mon
2010 2009 2010 2009 2009
Result after financial items -70.5 -27.8 -104.1 -56.5 -143.7 -96.1
Adjustments for items not included in cash flow 70.5 17.1 93.6 50.2 130.2 86.8
Paid taxes -1.1 -3.5 -8.8 -14.1 -2.6 -7.9
Changes in working capital -1.4 -16.5 -50.2 43.8 -22.2 71.8
Cash flow from operating activities -2.5 -30.7 -69.5 23.4 -38.3 54.6
Cash flow from investing activities -21.4 -12.2 -47.1 -28.4 -70.9 -52.2
Changes in long and short-term borrowing -136.4 25.7 -74.5 -50.1 -84.0 -59.6
New share issue 208.1 - 208.1 - 208.1 -
Cash flow from financing activities 71.7 25.7 133.6 -50.1 124.1 -59.6
Cash flow for the period 47.8 -17.2 17.0 -55.1 14.9 -57.2
Liquid funds at the beginning of the period 48.8 104.2 78.9 141.7 80.2 141.7
Translation difference -4.0 -6.8 -3.3 -6.4 -2.5 -5.6
Liquid funds at the end of the period 92.6 80.2 92.6 80.2 92.6 78.9
Net debt at the beginning of the period 905.6 806.4 837.4 843.3 835.4 843.3
Translation difference in net debt -19.4 -4.1 -32.0 -1.6 -32.1 -1.7
Net debt in acquisitions 8.6 - 8.6 - 8.6 -
Change in net debt -172.4 33.1 -91.6 -6.3 -89.5 -4.2
Net debt at the end of the period 722.4 835.4 722.4 835.4 722.4 837.4
Operating cash flow -14.1 -33.0 -85.5 34.0 -77.0 42.1

Group - Statements of financial position

30/9 30/9 31/12
MSEK 2010 2009 2009
Assets
Intangible assets 887.7 940.9 953.0
Tangible assets 371.3 432.2 435.1
Other fixed assets 163.8 125.6 131.4
Total fixed assets 1,422.8 1,498.7 1,519.5
Inventories 113.1 103.0 95.1
Accounts receivable 335.1 316.5 351.5
Other current assets 77.5 85.0 68.8
Cash and cash equivalents 92.6 80.2 78.9
Total current assets 618.3 584.7 594.3
Total assets 2,041.1 2,083.4 2,113.8
Equity and liabilities
Equity 825.3 786.6 765.1
Liabilities
Non-interest-bearing long-term liabilities 38.6 47.3 42.7
Interest-bearing long-term liabilities 326.4 94.1 87.6
Total long-term liabilities 365.0 141.4 130.3
Non-interest-bearing current liabilities 362.2 333.8 389.7
Interest-bearing current liabilities 488.6 821.6 828.7
Total current liabilities 850.8 1,155.4 1,218.4
Total equity and liabilities 2,041.1 2,083.4 2,113.8

Group - Statements of changes in equity

Equity Equity Total equity
attributable to attributable to
parent minority
company owners
MSEK shareholders
Equity at year-end 2008 875.6 2.1 877.7
Total comprehensive income for the year -112.3 -0.3 -112.6
Equity at year-end 2009 763.3 1.8 765.1
Equity at year-end 2008 875.6 2.1 877.7
Total comprehensive income for the period -90.9 -0.2 -91.1
Equity at the end of the third quarter 2009 784.7 1.9 786.6
Equity at year-end 2009 763.3 1.8 765.1
Transactions with minority owners 1.2 -1.8 -0.6
New share issue 208.1 - 208.1
Total comprehensive income for the period -147.3 - -147.3
Equity at the end of the third quarter 2010 825.3 - 825.3

Segment reporting

Effective the fourth quarter 2009 Group operations are reported as one reportable segment, since this is how the Group is now governed. This analysis identified the President as the highest decision-maker and the units in different countries were identified as operating segments. The operating segments were then merged to create a single operating segment, consisting of the entire Group, since the units have similar economic characteristics and resemble each other regarding the nature of their products and services, production processes, customer types etc. Regarding the financial information for the operating segment please see the consolidated income statements and the statement of financial position along with related notes.

PARENT COMPANY

Parent company - Income statements

Third quarter
MSEK
2010 2009
Net sales - -
Cost of products and services sold - -
Gross profit - -
Operating expenses -10.5 -6.4
Operating result -10.5 -6.4
Net financial items -2.2 -1.7
Result after net financial items -12.7 -8.1
Income taxes 3.3 2.1
Result for the period -9.4 -6.0

Interim Report January–September 2010

January-September Last Full year
MSEK 12 mon
2010 2009 2009
Net sales - - - -
Cost of products and services sold - - - -
Gross profit - - - -
Operating expenses -23.4 -29.5 -31.3 -37.4
Operating result -23.4 -29.5 -31.3 -37.4
Net financial items 11.7 80.9 14.0 83.2
Result after net financial items -11.7 51.4 -17.3 45.8
Income taxes 5.5 10.8 8.5 13.8
Result for the period -6.2 62.2 -8.8 59.6

Parent company - Statements of comprehensive income

MSEK Third quarter
2010 2009
Result for the period -9.4 -6.0
Other comprehensive income - -
Total comprehensive income -9.4 -6.0
MSEK January-September Last
12 mon
Full year
2010 2009 2009
Result for the period -6.2 62.2 -8.8 59.6
Other comprehensive income - - - -
Total comprehensive income -6.2 62.2 -8.8 59.6

Parent company - Balance sheets

30/9 30/9 31/12
MSEK 2010 2009 2009
Assets
Fixed assets 1,268.1 1,240.5 1,254.9
Current assets 163.5 66.9 61.4
Total assets 1,431.6 1,307.4 1,316.3
Equity, provisions and liabilities
Equity 754.8 605.3 552.9
Provisions 3.9 6.3 3.9
Long-term liabilities 146.3 0.1 0.1
Current liabilities 526.6 695.7 759.4
Total equity and liabilities 1,431.6 1,307.4 1,316.3

Parent company - Statements of changes in equity

Share
capital
Statutory
reserve
Retained
earnings
Total equity
and result
for the
MSEK period
Equity at year-end 2008 97.7 332.4 113.1 543.2
Total comprehensive income for the year - - 59.5 59.5
Paid group contribution, net - - -67.6 -67.6
Tax effect on paid group contribution, net - - 17.8 17.8
Equity at year-end 2009 97.7 332.4 122.8 552.9
Equity at year-end 2008 97.7 332.4 113.1 543.2
Total comprehensive income for the period - - 62.2 62.2
Equity at the end of the third quarter 2009 97.7 332.4 175.2 605.3
Equity at year-end 2009 97.7 332.4 122.8 552.9
New share issue 97.7 - 110.4 208.1
Total comprehensive income for the period - - -6.2 -6.2
Equity at the end of the third quarter 2010 195.3 332.4 227.1 754.8

KEY RATIOS - GROUP

Quarterly data

2010 2010 2010 2009 2009 2009 2009 2008 2008
MSEK Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
Net sales 406 409 401 455 381 445 477 621 516
Operating result -62 -8 -12 -28 -21 -22 12 -31 -9
Operating margin, % -15.2 -2.0 -3.0 -6.2 -5.6 -4.9 2.5 -5.0 -1.7
Result after financial items -71 -14 -19 -40 -28 -32 3 -44 -23
Result after tax -52 -12 -19 -37 -17 -24 3 -30 -22
Earnings per share, SEK -5.04 -1.21 -1.92 -3.79 -1.67 -2.46 0.34 -3.03 -2.25
Operating cash flow -14 -37 -34 8 -33 45 22 126 -37
Net cash flow per share, SEK 4.63 0.19 -3.35 -0.22 -1.76 -3.32 -0.56 6.98 0.03
Depreciation 33 22 22 24 26 24 27 31 27
Net investments 21 9 17 24 12 12 4 -3 36
Goodwill 843 863 868 895 889 920 923 918 866
Total assets 2,041 2,032 2,020 2,114 2,083 2,203 2,342 2,387 2,290
Equity 825 715 720 765 787 860 894 878 849
Net debt 722 906 868 837 836 806 838 843 916
Capital employed 1,548 1,621 1,588 1,602 1,622 1,667 1,732 1,721 1,765
Return on total assets, %1) -11.1 -1.5 -1.9 -5.3 -4.1 -4.0 3.0 -3.2 -0.6
1)
Return on equity, %
-27.0 -6.6 -10.0 -19.3 -8.1 -10.9 1.5 -13.9 -10.4
Return on capital employed, %1) -15.6 -2.0 -3.0 -7.0 -4.6 -5.2 2.8 -7.2 -2.2
Debt/equity ratio 0.9 1.3 1.2 1.1 1.1 0.9 0.9 1.0 1.1
Equity ratio, % 40.4 35.2 35.6 36.2 37.8 39.0 38.2 36.8 37.1
Interest coverage ratio 2) -3.8 -2.5 -2.8 -1.8 -1.7 -1.1 1.3 0.4 2.7
Number of employees at the end of
the period
1,556 1,523 1,457 1,538 1,541 1,557 1,652 1,812 1,887

1) Return ratios have been annualized.

2) Interest coverage ratio calculation is based on a moving 12 month period.

Five year overview – full year

2009 2008 2007 2006 2005
Result after financial items, MSEK -96 -34 184 -32 105
Result after tax, MSEK -74 -26 172 -49 78
Earnings per share, SEK -7.57 -2.62 18.06 -5.53 8.77
Dividends per share, SEK - - 4.50 2.36 2.36
Return on equity, % -9.1 -3.0 24.2 -8.2 13.2
Return on total assets, % -2.2 1.7 12.0 -0.3 7.5
Return on capital employed, % -3.6 0.9 16.0 -0.7 10.1
Debt/equity ratio 1.1 1.0 1.0 1.1 1.0
Equity ratio, % 36.2 36.8 38.9 33.9 35.3

Key ratios correspond to those presented in the Annual Report for each year.

Five year overview – third quarter

2010 2009 2008 2007 2006
Q3 Q3 Q3 1)
Q3
1
Q3
Net sales, MSEK 406 381 516 471 432
Result after tax, MSEK -52 -17 -22 54 11
Earnings per share, SEK 3) -5.04 -1.67 -2.25 5.54 1.25
Return on equity, % 2) -11.0 -8.1 -10.4 28.3 7.1
Return on capital employed, % 2) -5.1 -4.6 -2.2 13.8 6.6
Operating margin, % -15.2 -5.6 -1.7 11.5 4.9
Average number of shares, in thousands 10,308 9,765 9,765 9,765 8,855

1) The figures include discontinued operations in Kungsbacka, i.e. directories production, that were discontinued in the first quarter 2007. 2) Return valuations are annualised.

3) There is no dilution.

Five year overview – third quarter

2010
Jan-Sep
2009
Jan-Sep
2008
Jan-Sep
2007
Jan-Sep1)
2006
Jan-Sep1)
Net sales, MSEK 1,215 1,302 1,571 1,449 1,228
Result after tax, MSEK -83 -37 4 109 65
Earnings per share, SEK 3) -8.29 -3.78 0.41 11.50 7.33
Return on equity, % 2) -13.8 -6.0 0.6 20.4 14.5
Return on capital employed, % 2) -6.9 -2.5 3.8 13.8 11.6
Operating margin, % -6.7 -2.4 3.0 9.8 8.7
Average number of shares, in thousands 9,946 9,765 9,765 9,462 8,855

1) The figures include discontinued operations in Kungsbacka, i.e. directories production, that were discontinued in the first quarter 2007. 2) Return ratios are annualized.

3) There is no dilution.

NOTES

Note 1. Acquisition of operations

Specification of acquistions made in 2010

Acquisition date Company Country Number of
employees
1 August 2010 Printpack – CW GmbH Germany 44

In August 2010 Elanders acquired the assets and liabilities in Printpack CW – GmbH in Stuttgart, Germany. The company is specialized in packaging production and has many international customers. The agreed purchase price amounted to MEUR 2.5 in addition to the transfer of a leasing debt of MEUR 0.9. The acquisition resulted in negative goodwill amounting to MEUR 0.4 that has been as accounted for as income.

Assets and liabilities in acquisitions

Recorded values in
aquired operations
Adjustments to fair
value
Recorded value in
the group
MSEK
Intangible assets - 4.7 4.7
Tangible assets 21.4 - 21.4
Inventories 11.5 - 11.5
Non-interest-bearing long-term liabilities - -1.5 -1.5
Interest-bearing long-term liabilities -8.6 - -8.6
Identifiable net assets 24.3 3.2 27.5
Negative goodwill -3.9
Total purchase price 23.6
Less:
Unpaid purchases sums -
Cash and cash equivalents in acquired operations -
Negative effect on cash and cash equivalents 23.6

In March 2010 the remaining minority in the subsidiary in Brazil was acquired. The purchase price amounted to MUSD 0.5.

Definitions
Equity ratio Equity (including minority interests) in relation to total assets.
Capital employed Total assets less cash and cash equivalents and non-interest-bearing liabilities.
Return on capital employed Operating result in relation to average capital employed.
Return on equity Result for the year in relation to average equity.
Return on total assets Operating result plus financial income in relation to total assets.
Debt/equity ratio Interest-bearing liabilities less cash and cash equivalents in relation to reported equity,
including minority interests.
Operating cash flow Cash flow from operating activities and investing activities adjusted for paid taxes and net
financial items.
Interest coverage ratio Operating result plus interest income divided by interest costs.

ELANDERS – A GLOBAL PRINTING GROUP

  • FROM INDIVIDUAL PRODUCTS TO TOTAL SOLUTIONS

Elanders handles customers' information and printed matter logistics via a single contact, no matter how voluminous the material nor how many languages it is published in. We create solutions based on our customers' needs and ability. No matter how the information is delivered to Elanders we process it and then produce and distribute it, directly to the recipient of the information when that is an advantage. We provide technical support for our customers' information management through a platform of systems that help to automate customers' information processes.

Some of our products:

  • Shop material
  • Books & Catalogues
  • Photo products
  • Packaging
  • Information and marketing material
  • Office material
  • Manuals and product information
  • Periodicals

Some of our services:

  • Online services
  • Arts & Graphics
  • Translation
  • Personalized print
  • Global print
  • Fulfillment
  • Storage & Distribution
  • Order & Invoicing
  • Just-in-time deliveries

Production and sales in:

.

Falköping, Göteborg, Lund, Malmö, Stockholm, Uppsala, Västerås (Sweden), Oslo (Norway), Harrogate and Newcastle (Great Britain), Stuttgart (Germany), Atlanta (USA), São Paulo (Brazil), Beijing (China), Płonsk (Poland), Treviso (Italy) and Zalalövő (Hungary).

Talk to a Data Expert

Have a question? We'll get back to you promptly.