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Munters Group — Interim / Quarterly Report 2010
Jul 22, 2010
2945_ir_2010-07-22_64523ff6-d5e9-43c7-a0f5-6251933b4182.pdf
Interim / Quarterly Report
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Interim report Second quarter, April – June 2010
An important milestone in Munters' development
- Munters signed an agreement to divest its MCS division, which is therefore reported on separate lines as discontinued operations. The deal value amounts to around SEK 1,300 M and estimated impact on net profit after tax is approximately SEK 650 M in quarter 3 when the deal is closed
- Order intake for continuing operations amounted to SEK 1,029 M (1,029), up 6% adjusted1
- Net sales for continuing operations totaled SEK 910 M (1,013), down 5% adjusted1
- EBIT for continuing operations before nonrecurring items amounted to SEK 87 M (86), up 7% adjusted1
- Operating cash flow from continuing operations amounted to SEK 60 M (153)
- Net earnings after tax for the period for continuing operations totaled SEK 57 M (47)
- Earnings per share for continuing operations amounted to SEK 0.77 (0.64)
- Net sales including discontinued operations amounted to SEK 1,566 M (1 694). EBIT including discontinued operations amounted to SEK 113 M (86)
| Quarter 2 | Six-month period | |||||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | Change | Adjusted change 1 |
2010 | 2009 | Change | Adjusted change 1 |
|
| Continuing operations | ||||||||
| Order intake, SEK M | 1,029 | 1,029 | 0% | 6% | 1,890 | 2,031 | -7% | 1% |
| Net sales, SEK M | 910 | 1,013 | -10% | -5% | 1,682 | 1,980 | -15% | -8% |
| EBIT before nonrecurring items, SEK M |
87 | 86 | 1% | 7% | 127 | 108 | 18% | 28% |
| EBIT, SEK M | 87 | 79 | 10% | 127 | 72 | 76% | ||
| EBIT margin, percent | 9.6 | 7.8 | 7.6 | 3.6 | ||||
| Net earnings, SEK M | 57 | 47 | 77 | 22 | ||||
| Earnings per share, SEK | 0.77 | 0.64 | 1.05 | 0.30 | ||||
| Total, including discontinued operation | ||||||||
| Net sales, SEK M | 1,566 | 1,694 | -8% | 2,975 | 3,397 | -12% | ||
| EBIT before nonrecurring items, SEK M |
113 | 86 | 31% | 181 | 125 | 45% | ||
| Net earnings, SEK M | 50 | 27 | 87 | 5 | ||||
| Earnings per share, SEK | 0.67 | 0.36 | 1.17 | 0.07 |
Adjusted for currency effects 1
Comments by President and CEO Lars Engström
The quarter marked an important milestone in Munters' development. The divestment of MCS was entered into at a time when our product divisions had achieved stable profitability following a number of difficult quarters.
With our two core criteria of stability and profitability in place, Munters' continuing operations can now focus on organic growth and growth through acquisitions. The current quarter was the first since the second quarter of 2008 in which Munters' continuing operations succeeded in achieving positive organic order growth.
Our current focus is on the numerous opportunities that exist to broaden our geographic presence and product range in several business segments in Dehumidification and HumiCool. Operational streamlining, combined with a strong balance sheet, will enable us to increase the rate at which we implement our acquisition plans.
Munters is a global leader in energy-efficient air-treatment solutions and restoration services based on expertise in humidity and climate control technologies. Customers are served in a wide range of segments, the most important being the insurance, food and pharma industries. Manufacturing and sales are carried out through the Group's own companies in more than 30 countries. The Group has close to 4 000 employees and net sales of about SEK 6.5 billion. The Munters share is listed on the Nasdaq OMX Stockholm, Mid Cap.
For more information, www.munters.com.
President and CEO Lars Engström
CFO
Martin Lindqvist
Phone +46 8 626 63 03 [email protected]
Phone +46 8 626 63 06 [email protected]
Address
Munters AB (publ) Isafjordsg 1, Kista Entré P.O. Box 1188 S-164 26 Kista Sweden
Second quarter
Discontinued operations
In accordance with Munters' plans to focus on its core operations, the company signed an agreement to divest its MCS division to Triton. The value and cash-flow effect of the transaction amounted to around SEK 1,300 M, comprising a cash payment and repayment of intra-Group loans. The divestment is expected to be completed in the third quarter of 2010. The estimated impact on net earnings after tax in the third quarter will be approximately SEK 650 M.
The MCS division is the market leader in water and firedamage restoration, with sales of SEK 2,768 M in 2009 and 1,805 employees in 18 countries. Following the divestment, Munters plans to streamline its operations to focus on energyefficient air-treatment solutions based on expertise in humidity and climate control technologies.
Completion of the transaction is conditional upon approval from the relevant competition authorities, and Munters' fulfillment of the obligation to inform and consult with relevant employee bodies in each country where so is required.
In this interim report, the earnings generated by MCS are excluded from all income and expense items in the "Statement of comprehensive income" and are instead recognized in a net amount under "Net earnings from discontinued operations." In the "Statement of cash flows," MCS is recognized under the heading "Cash flow from discontinued operations." Assets and liabilities attributable to MCS are recognized on separate lines in the "Statement of financial position" as of June 30, 2010, under the respective items "Assets held for sale" and "Liabilities held for sale."
Order intake
During the second quarter, order intake for continuing operations amounted to SEK 1,029 M (1,029), up 6% adjusted1.
Increased demand in Europe and Asia was noted in the Dehumidification division. The US operations experienced a continued organic decline attributable to the industrial segment in the US.
In the HumiCool division, growth remained favorable in AgHort and HVAC standard products, while HVAC systems (PreCooler) and Mist Elimination continued to decline.
The order backlog fell 4% compared with the yearearlier period and amounted to SEK 1,163 M (1,207) at the end of the quarter, corresponding to a change of 0% adjusted1.
Net sales
Net sales for continuing operations declined to SEK 910 M (1,013), down 5% adjusted1. A stronger SEK compared with the year-earlier period had a negative impact of 5% on SEK-denominated net sales.
Earnings
EBIT for continuing operations amounted to SEK 87 M (79), corresponding to an operating margin of 9.6% (7.8).
Despite a decline in sales, profitability improved in both divisions due to increased gross margins and a reduction in overhead costs.
The closure of MCS Australia was completed according to plan. The total cost amounted to SEK 18 M.
Earnings from continuing operations after financial items totaled SEK 84 M (63) during the second quarter. Net earnings from continuing operations amounted to SEK 57 M (47) and earnings per share to SEK 0.77 (0.64). For the Group as a whole, net earnings amounted to SEK 50 M (27) and earnings per share to SEK 0.67 (0.36).
Cash flow
Operating cash flow from continuing operations amounted to SEK 60 M (153). Though the capital turnover improved in both divisions, the cash flow was lower than in the very strong second quarter 2009.
Third-quarter prospects
The Dehumidification division and parts of HumiCool are expected to recover.
1Adjusted for currency effects
Consolidated order intake for continuing operations 2000 – 2010
Consolidated net sales and EBIT for continuing operations 2000 – 2010
2004 and later in accordance with IFRS
Interim period
Order intake
Order intake for continuing operations declined 7% during the period to SEK 1,890 M (2,031), up 1% adjusted1.
Net sales
Consolidated net sales for continuing operations fell 15% to SEK 1,682 M (1,980), down 8% adjusted1.
Earnings
Consolidated EBIT for continuing operations increased to SEK 127 M (72). The operating margin was 7.6% (3.6).
Consolidated earnings from continuing operations after financial items amounted to SEK 120 M (39). Net earnings from continuing operations for the interim period totaled SEK 77 M (22) after tax burden of 36% (43). The Group's tax run rate is estimated not to be significantly affected by the divestment of division MCS. Earnings per share for continuing operations amounted to SEK 1.05 (0.30). For the Group as a whole, net earnings totaled SEK 87 M (5) and earnings per share amounted to SEK 1.17 (0.07).
Investments
Group investments in tangible assets for continuing operations amounted to SEK 18 M (26) during the
quarter. Depreciation, amortization and impairment totaled SEK 37 M (45).
Financial position
The equity ratio at the end of the period rose to 37% (35 at the beginning of the year). Interest-bearing assets totaled SEK 427 M (460 at the beginning of the year), and interest-bearing provisions and liabilities amounted to SEK 1,161 M (1,309 at the beginning of the year). Net debt declined SEK 115 M to SEK 734 M during the period. The Group has unutilized loan facilities of SEK 1,303 M. Munters' bank borrowings consist of a syndicated credit facility and bank loans granted to subsidiaries on an individual basis. During the year, the syndicated credit facility was amortized by SEK 98 M. The syndicated credit facility amounts to SEK 2,000 M and extends until 2012. Due to the upcoming divestment of division MCS, the Group's financing will be reviewed.
Personnel
The workforce in continuing operations at the end of the period corresponded to 2,082 permanent employees, which represents an increase by 65 employees from year-end and an increase with 16 employees since end of second quarter 2009. The number of permanent employees in the MCS division amounted to 1,750 (1,889) at the end of the period.
1Adjusted for currency effects
Divisional performance
Dehumidification division
The Dehumidification division has a function-based organization divided into three market areas: Americas, Europe and Asia & Pacific.
| Second quarter | Jan-Jun | ||||
|---|---|---|---|---|---|
| Amounts in SEK M | 2010 | 2009 | 2010 | 2009 | |
| Order intake | 603 | 636 | 1,145 | 1,232 | |
| Change | -5% | -7% | |||
| Adjusted change1 | 0% | 1% | |||
| Net sales | 556 | 598 | 1,008 | 1,186 | |
| Change | -7% | -15% | |||
| Adjusted change1 | -3% | -8% | |||
| EBITA ex. | |||||
| one-time items | 68 | 70 | 100 | 97 | |
| Adjusted margin | 12.2% | 11.8% | 9.9% | 8.2% | |
| EBITA | 68 | 66 | 100 | 80 | |
| EBITA margin | 12.2% | 11.0% | 9.9% | 6.8% |
- Growth in Europe
- Continued low order intake from the US industrial segment
- Higher gross margins and lower overhead costs
- Improvement in capital turnover
Second quarter
Following two consecutive quarters of stable but unchanged order intake, the division's European operations experienced noticeable growth. The division's Asian operations grew 25% while the US operations continued to face organic decline attributable to the industrial segment.
Sales declined 3% organically. The downturn was attributable to the order situation in the preceding quarter and a higher proportion of major projects with protracted lead times.
Profitability improved somewhat, despite the downturn in volumes. The division continued to report a stronger gross margin and a reduction in overhead costs, although the rate of improvement slowed since the relatively comprehensive improvement measures implemented in the second half of 2009 are now included in the comparative period.
Operating capital remained a focus area, and the division was highly successful in its efforts to improve its capital turnover.
1Adjusted for currency effects
Third-quarter prospects
A stabilization and improvement in demand is anticipated in all regions. The declining relative size of the industrial segment is expected to generate a continued mix-related decline in the gross margin, which will partly counteract the profitability improvement achieved to date.
HumiCool division
The HumiCool division is divided into three business areas: AgHort, Mist Elimination and HVAC (including PreCooler).
| Second quarter | Jan-Jun | ||||
|---|---|---|---|---|---|
| Amounts in SEK M | 2010 | 2009 | 2010 | 2009 | |
| Order intake | 430 | 401 | 763 | 814 | |
| Change | 7% | -6% | |||
| Adjusted change1 | 14% | 1% | |||
| Net sales | 368 | 421 | 691 | 811 | |
| Change | -13% | -15% | |||
| Adjusted change1 | -7% | -8% | |||
| EBITA ex. one-time items |
35 | 34 | 57 | 39 | |
| Adjusted margin | 9.5% | 8.0% | 8.3% | 4.9% | |
| EBITA | 35 | 31 | 57 | 20 | |
| EBITA margin | 9.5% | 7.3% | 8.3% | 2.5% |
- Positive order growth in AgHort and HVAC standard products
- Continued decline in order intake and sales in HVAC systems (PreCooler) and Mist Elimination
- Improved gross margins and somewhat lower overhead costs
Second quarter
Order intake increased for the third consecutive quarter in AgHort and HVAC standard products. AgHort reported substantial growth in all regions. PreCooler and Mist Elimination noted a continued decline in demand.
HVAC experienced a gradual return to earlier order behavior for portable heaters at the distributor level, and a certain increase in pre-season orders was noted in the second quarter. The number of pre-season orders in the year-earlier period was reduced as a result of the financial crisis.
Sales increased in AgHort and HVAC standard products, but declined sharply in PreCooler and Mist Elimination with 76% and 20% respectively.
Despite declining volumes, profitability in the division improved. The gross margin increased in all segments, and overhead costs fell somewhat. As in the Dehumidification division, the rate of improvement slowed since the comparative period now includes extensive cost-saving measures.
Capital turnover improved during the quarter.
Third-quarter prospects
A continued recovery is anticipated for AgHort and HVAC standard products, while PreCooler and Mist Elimination are expected to remain at a low level.
HumiCool's review of the plant structure will continue. During the second half of 2010, the review is expected to cost SEK 30 M and will mainly focus on consolidating the division's Italian operations to Imperia, after which the plant in Mondovi will be closed.
Moisture Control Services (MCS) division undergoing sale
The MCS division has a country-based organization divided into three market areas: Northern Europe, Central Europe and US & Asia.
| Second quarter | Jan-Jun | ||||
|---|---|---|---|---|---|
| Amounts in SEK M | 2010 | 2009 | 2010 | 2009 | |
| Order intake | 602 | 687 | 1,285 | 1,410 | |
| Change | -12% | -9% | |||
| Adjusted change1 | 2% | 4% | |||
| Net sales | 656 | 682 | 1,294 | 1,419 | |
| Change | -4% | -9% | |||
| Adjusted change1 | 7% | 2% | |||
| EBITA ex. one-time items |
25 | -1 | 52 | 15 | |
| Adjusted margin | 3.8% | -0.2% | 4.0% | 1.1% | |
| EBITA | 3 | -18 | 30 | -6 | |
| EBITA margin | 0.4% | -2.6% | 2.3% | -0.4% |
- Munters has signed an agreement to sell MCS to Triton
- Closure of MCS Australia completed according to plan
Second quarter
Order intake and sales increased during the quarter. A certain portion of the division's sales pertained to outstanding invoicing following the cold and snowy first quarter.
Profitability increased to 3.8%, excluding nonrecurring items and the loss for the quarter in Australia.
The division's Australian operations were discontinued according to plan at a total cost of SEK 18 M, including the operating loss for the quarter.
The division incurred additional nonrecurring costs totaling SEK 4 M within the framework of its ongoing organizational changes.
Third-quarter prospects
No forecast has been issued since the division is currently being sold.
1Adjusted for currency effects, acquisition and divestments
SIGNIFICANT RISKS AND UNCERTAINTIES
Munters' exposure to risk can be divided primarily into two categories – operational risks and financial risks. Operational risks are dependent on weather, key personnel and key customers, and geographically dispersed operations involving small operational units. Financial risks consist mainly of currency, interest-rate and financing risks.
Demand for the company's products is affected by general economic trends. The recession has resulted in lower sales, thereby also reducing capacity utilization in manufacturing in the short term. The continuing trend in the global economy, including interest-rate and currency risks, represents an uncertainty factor concerning the earnings trend. Munters' previous acquisition frequency may result in integration-related risks.
A more detailed description of the operations' operational and financial risks and the Group's control and risk management activities is available in the "Risks and risk management" section on page 25 and in Note 3 of the Munters Annual Report for 2009, which is available at www.munters.com.
FORWARD-LOOKING STATEMENTS
Some statements in this report are forward looking, and the actual outcomes may be materially different. In addition to the factors explicitly discussed, other factors could have a material impact on actual outcomes, such as general business conditions, fluctuations in exchange rates and interest rates, political risks, the impact of competing products and their pricing, product development, commercial and technological difficulties, interruptions in supply and major customer-related bad debts.
TRANSACTIONS WITH RELATED PARTIES
There are no significant contractual relationships or transactions between Munters and its related parties, apart from the remuneration of senior executives.
PARENT COMPANY
The Parent Company reported profit of SEK 101 M (0) after financial items during the quarter. There were no external net sales (as in 2009). Cash and cash equivalents at the close of the period amounted to SEK 87 M (148 at the beginning of the year) and net debt to SEK 881 M (981 at the beginning of the year). Capital expenditure totaled SEK 2 M (3). The average number of employees at the close of the period was 32 (31).
FUTURE INFORMATION DATES
| November 11, 2010 Interim report, January-September | |
|---|---|
| 2010 | |
| February 9, 2011 | Year-end report 2010 |
| April 26, 2011 | Interim report, January-March 2011 |
PRESS AND ANALYST CONFERENCE
Munters will hold an audiocast and teleconference for the media, analysts and investors on Thursday, July 22, from 2:00 to 3:00 p.m.
The link to the audiocast is www.munters.com/ Investors/Calendar
Phone: Sweden +46 8 5051 3794 UK +44 20 7816 1968
AUDITORS' EXAMINATION REPORT
The auditors have not examined this interim report.
The undersigned give their assurance that this six-month report provides a true and fair view of the Parent Company's and the Group's operations, financial position and earnings, and describes the material risks and uncertainties to which the Parent Company and the companies included in the Group are exposed.
Anders Ilstam Kenneth Eriksson Bengt Kjell Chairman of the Board Board member Board member
Eva-Lotta Kraft Sören Mellstig Pia Nordquist Board member Board member Board member
Jan Svensson Ulf Wallén Kjell Åkesson
Kista, July 22, 2010
Lars Engström President and Chief Executive Officer Board member
Board member Board member Board member
Munters AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on July 22, 2010 at 1:00 pm (CET).
| CONSOLIDATED | 2010 | 2009 | 2010 | 2009 | 2009/2010 | 2009 |
|---|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
| Amounts in SEK M Note |
3 months | 3 months | 6 months | 6 months | 12 months | 12 months |
| Order intake | 1,029 | 1,029 | 1,890 | 2,031 | 3,443 | 3,584 |
| Statement of comprehensive income | ||||||
| Net sales | 910 | 1,013 | 1,682 | 1,980 | 3,461 | 3,759 |
| Cost of goods sold | -595 | -689 | -1,113 | -1,404 | -2,287 | -2,578 |
| Gross earnings | 315 | 324 | 569 | 576 | 1,174 | 1,181 |
| Gross margin | 34.6% | 32.0% | 33.8% | 29.1% | 33.9% | 31.4% |
| Other operating income | 1 | 0 | -2 | 4 | -4 | 2 |
| Selling expenses | -122 | -128 | -234 | -271 | -450 | -487 |
| Administrative expenses | -85 | -93 | -163 | -190 | -321 | -348 |
| Research and development costs | -22 | -22 | -43 | -45 | -80 | -82 |
| Other operating expenses | 0 | -2 | 0 | -2 | -1 | -3 |
| EBIT - Earnings before interest and tax | 87 | 79 | 127 | 72 | 318 | 263 |
| EBIT margin | 9.6% | 7.8% | 7.6% | 3.6% | 9.2% | 7.0% |
| Financial income and expenses | -3 | -16 | -7 | -33 | -24 | -50 |
| Earnings after financial income | 84 | 63 | 120 | 39 | 294 | 213 |
| Taxes | -27 | -16 | -43 | -17 | -118 | -92 |
| Net earnings from continuing operations | 57 | 47 | 77 | 22 | 176 | 121 |
| Net earnings from discontinued operation 2 |
-7 | -20 | 10 | -17 | 41 | 14 |
| Net earnings | 50 | 27 | 87 | 5 | 217 | 135 |
| Other comprehensive income | ||||||
| Actuarial gains and losses on defined benefit pension plans | 0 | 0 | -1 | 0 | 8 | 9 |
| Cash flow hedges | 1 | -6 | 1 | -4 | 6 | 1 |
| Exchange differences on translating foreign operations | 42 | -22 | 27 | 17 | -20 | -30 |
| Income tax relating to components of other comprehensive income | 0 | 2 | 0 | 1 | -3 | -2 |
| Other comprehensive income for the period, net of tax | ||||||
| continuing operations | 43 | -26 | 27 | 14 | -9 | -22 |
| Other comprehensive income for the period, net of tax 2 |
-3 | -2 | -15 | 12 | -17 | 10 |
| discontinued operation | ||||||
| Other comprehensive income for the period, net of tax | 40 | -28 | 12 | 26 | -26 | -12 |
| Total comprehensive income for the period continuing operations | 100 | 21 | 104 | 36 | 167 | 99 |
| Total comprehensive income for the period discontinued operation 2 |
||||||
| Total comprehensive income for the period | -10 90 |
-22 -1 |
-5 99 |
-5 31 |
24 191 |
24 123 |
| Net earnings | ||||||
| Attributable to equity holders of the parent | 49 | 27 | 86 | 5 | 215 | 134 |
| Attributable to minority interest | 1 | 0 | 1 | 0 | 2 | 1 |
| 50 | 27 | 87 | 5 | 217 | 135 | |
| Total comprehensive income | ||||||
| Attributable to equity holders of the parent | 89 | -1 | 98 | 31 | 189 | 122 |
| Attributable to minority interest | 1 | 0 | 1 | 0 | 2 | 1 |
| 90 | -1 | 99 | 31 | 191 | 123 | |
| Earnings per share1 | ||||||
| Continuing operations | ||||||
| Earnings per share, SEK | 0.77 | 0.64 | 1.05 | 0.30 | 2.38 | 1.63 |
| Earnings per share - after dilution, SEK | 0.77 | 0.64 | 1.05 | 0.30 | 2.38 | 1.63 |
| Total | ||||||
| Earnings per share, SEK | 0.67 | 0.36 | 1.17 | 0.07 | 2.91 | 1.81 |
| Earnings per share - after dilution, SEK | 0.67 | 0.36 | 1.17 | 0.07 | 2.91 | 1.81 |
1 Earnings per share, before and after dilution, is based on net earnings attributable to equity holders of the parent
Segment information continuing operations
| 2010 | 2009 | 2010 | 2009 | 2009/2010 | 2009 | |
|---|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
| Amounts in SEK M | 3 months | 3 months | 6 months | 6 months | 12 months | 12 months |
| Order intake by division | ||||||
| Dehumidification division | 603 | 636 | 1,145 | 1,232 | 2,147 | 2,234 |
| HumiCool division | 430 | 401 | 763 | 814 | 1,319 | 1,370 |
| Eliminations | -4 | -8 | -18 | -15 | -23 | -20 |
| Order intake | 1,029 | 1,029 | 1,890 | 2,031 | 3,443 | 3,584 |
| Net sales by division | ||||||
| Dehumidification division | 556 | 598 | 1,008 | 1,186 | 2,122 | 2,300 |
| HumiCool division | 368 | 421 | 698 | 811 | 1,370 | 1,483 |
| Eliminations | -14 | -6 | -24 | -17 | -31 | -24 |
| Net sales | 910 | 1,013 | 1,682 | 1,980 | 3,461 | 3,759 |
| Operating earnings by division | ||||||
| Dehumidification division | 68 | 66 | 100 | 80 | 271 | 251 |
| operating margin | 12.2% | 11.0% | 9.9% | 6.8% | 12.4% | 10.9% |
| HumiCool division | 35 | 31 | 57 | 20 | 108 | 71 |
| operating margin | 9.5% | 7.3% | 8.3% | 2.5% | 7.3% | 4.8% |
| Central, eliminations etc. | -12 | -14 | -24 | -22 | -48 | -46 |
| EBIT before amortizations, interest and tax | 91 | 83 | 133 | 78 | 331 | 276 |
| Amortizations on acquisition related intangible assets | -4 | -4 | -6 | -6 | -13 | -13 |
| EBIT - Earnings before interest and tax | 87 | 79 | 127 | 72 | 318 | 263 |
| Dehumidification | HumiCool | Central,elim | Total | |
|---|---|---|---|---|
| Earnings by segment | 2010 | 2010 | 2010 | 2010 |
| Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | |
| Amounts in SEK M | 3 months | 3 months | 3 months | 3 months |
| External net sales | 544 | 366 | 910 | |
| Internal net sales | 12 | 2 | -14 | 0 |
| Net sales | 556 | 368 | -14 | 910 |
| Operating earnings | 68 | 35 | 0 | 103 |
| Amortization of surplus values | -2 | -2 | -4 | |
| Undistributed costs | -12 | -12 | ||
| EBIT - Earnings before interest and tax | 66 | 33 | -12 | 87 |
| Financial items, net | -3 | |||
| Taxes | -27 | |||
| Net earnings from continuing operations | 57 | |||
| Net earnings from discontinued operation | -7 | |||
| Net earnings | 50 | |||
| Dehumidification | HumiCool | Central,elim | Total | |
|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | |
| Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | |
| Amounts in SEK M | 3 months | 3 months | 3 months | 3 months |
| External net sales | 592 | 420 | 1,012 | |
| Internal net sales | 6 | 1 | -7 | 0 |
| Net sales | 598 | 421 | -7 | 1,012 |
| Operating earnings | 66 | 31 | -2 | 95 |
| Amortization of surplus values | -2 | -2 | -4 | |
| Undistributed costs | -12 | -12 | ||
| EBIT - Earnings before interest and tax | 64 | 29 | -14 | 79 |
| Financial items, net | -16 | |||
| Taxes | -16 | |||
| Net earnings from continuing operations | 47 | |||
| Net earnings from discontinued operation | -20 | |||
| Net earnings | 27 |
CONSOLIDATED
| Statement of financial position | 2010 | 2010 | 2009 | 2009 |
|---|---|---|---|---|
| Amounts in SEK M | 30 Jun | 31 Mar | 31 Dec | 30 Jun |
| ASSETS | ||||
| Fixed assets | ||||
| Buildings and land | 148 | 191 | 197 | 206 |
| Plant and machinery | 108 | 109 | 116 | 140 |
| Equipment, tools, fixtures and fittings | 42 | 227 | 241 | 295 |
| Construction in progress | 9 | 8 | 15 | 17 |
| Patent, trademarks and similar rights | 99 | 120 | 127 | 140 |
| Goodwill | 765 | 890 | 926 | 974 |
| Participation in associated companies | 0 | 0 | 0 | 2 |
| Other long-term receivables | 17 | 22 | 28 | 29 |
| Deferred tax assets | 125 | 142 | 148 | 160 |
| 1,313 | 1,709 | 1,798 | 1,963 | |
| Current assets | ||||
| Inventory etc. | 462 | 471 | 427 | 569 |
| Accounts receivable | 554 | 939 | 1,051 | 1,080 |
| Other receivables | 186 | 221 | 235 | 255 |
| Cash and cash equivalents | 321 | 401 | 458 | 367 |
| 1,523 | 2,032 | 2,171 | 2,271 | |
| Assets held for sale | 1,046 | |||
| TOTAL ASSETS | 3,882 | 3,741 | 3,969 | 4,234 |
| EQUITY AND LIABILITIES | ||||
| Equity | 1,431 | 1,415 | 1,407 | 1,316 |
| Long-term liabilities | ||||
| Interest-bearing liabilities | 941 | 953 | 1,100 | 1,395 |
| Provisions | 147 | 192 | 205 | 213 |
| Deferred tax liabilities | 70 | 79 | 81 | 84 |
| Other liabilities | 0 | 0 | 1 | 7 |
| 1,158 | 1,224 | 1,387 | 1,699 | |
| Current liabilities | ||||
| Interest-bearing liabilities | 34 | 32 | 31 | 15 |
| Advances from customers | 72 | 62 | 66 | 87 |
| Accounts payable | 375 | 421 | 479 | 478 |
| Provisions | 84 | 83 | 81 | 86 |
| Other liabilities | 337 | 504 | 518 | 553 |
| 902 | 1,102 | 1,175 | 1,219 | |
| Liabilities held for sale | 391 | |||
| TOTAL EQUITY AND LIABILITIES | 3,882 | 3,741 | 3,969 | 4,234 |
Statement of changes in equity
| Share foreign Retained attributable to equity Minority capital operations earnings holders of the parent interest Balance at 1 January 2009 131 99 1,048 1,278 7 Changes in equity 2009 Dividend -1 |
Total equity |
|---|---|
| 1,285 | |
| -1 | |
| Total comprehensive income for the year -23 145 122 1 |
123 |
| Balance at 31 December 2009 131 76 1,193 1,400 7 |
1,407 |
| Changes in equity 2010 | |
| Dividend -74 -74 -1 |
-75 |
| Total comprehensive income for the year 10 89 98 1 |
99 |
| Balance at 30 June 2010 131 86 1,208 1,424 7 |
| CONSOLIDATED | ||||||
|---|---|---|---|---|---|---|
| Statement of cash flows | 2010 | 2009 | 2010 | 2009 | 2009/2010 | 2009 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
| Amounts in SEK M | 3 months | 3 months | 6 months | 6 months | 12 months | 12 months |
| Operating activities | ||||||
| Earnings after financial items | 84 | 63 | 120 | 39 | 294 | 213 |
| Reversal of depreciation etc. | 19 | 23 | 37 | 45 | 77 | 85 |
| Other earnings not affecting cash flow | -1 | 14 | - | 6 | -10 | -4 |
| Taxes paid | -37 | -69 | -52 | -73 | -129 | -150 |
| Cash flow from operating activities | ||||||
| before changes in working capital | 65 | 31 | 105 | 17 | 232 | 144 |
| Cash flow from changes in working capital | ||||||
| Changes in inventory | -60 | 22 | -85 | 31 | 14 | 130 |
| Changes in accounts receivable | -33 | 94 | 43 | 134 | 11 | 102 |
| Changes in other receivables | - | 13 | 8 | -11 | 21 | 2 |
| Changes in accounts payable | 64 | -2 | 48 | -17 | 41 | -24 |
| Changes in other liabilities | 31 | 6 | 25 | -15 | -9 | -49 |
| Sum of changes in working capital | 2 | 133 | 39 | 122 | 78 | 161 |
| Cash flow from operating activities | 67 | 164 | 144 | 139 | 310 | 305 |
| Investing activities | ||||||
| Acquisitions and divestments of businesses | - | 2 | - | -2 | - | -2 |
| Investments in intangible assets | -1 | -1 | -2 | - | -5 | -3 |
| Investments in tangible assets | -10 | -11 | -18 | -27 | -35 | -44 |
| Sales of tangible assets | 4 | 1 | 5 | 1 | 9 | 5 |
| Change in other financial assets | - | - | 1 | 1 | 1 | 1 |
| Cash flow from investing activities | -7 | -9 | -14 | -27 | -30 | -43 |
| Financing activities | ||||||
| Changes in loans | 57 | -104 | -15 | -260 | -104 | -349 |
| Dividend paid | -74 | - | -74 | - | -74 | - |
| Cash flow from financing activities | -17 | -104 | -89 | -260 | -178 | -349 |
| Cash flow for the period from continuing operations | 43 | 51 | 41 | -148 | 102 | -87 |
| Cash flow from discontinued operation | ||||||
| Cash flow from operating activities | 40 | 74 | 28 | 125 | 155 | 252 |
| Cash flow from investing activities | -11 | -25 | -17 | -48 | -24 | -55 |
| Cash flow from financing activities | -51 | -32 | -79 | -7 | -211 | -139 |
| Cash flow for the period from discontinued operation | -22 | 17 | -68 | 70 | -80 | 58 |
| Cash flow for the period | 21 | 68 | -27 | -78 | 22 | -29 |
| Cash and cash equivalents at beginning of period | 401 | 352 | 458 | 490 | 251 | 490 |
| Exchange-differences in cash and cash equivalents 1 |
6 | -53 | -4 | -45 | 38 | -3 |
| Cash and cash equivalents at end of period | 427 | 367 | 427 | 367 | 311 | 458 |
| Operating cash flow from continuing operations | 60 | 153 | 130 | 114 | 280 | 264 |
| Net debt structure | ||||||
| Short-term interest-bearing liabilities | - | - | 41 | 15 | 41 | 31 |
| Long-term interest-bearing liabilities | - | - | 943 | 1,395 | 943 | 1,100 |
| Defined benefit pension plans | - | - | 177 | 188 | 177 | 178 |
| Interest-bearing liabilities | - | - | -427 | -367 | -427 | -460 |
| Net debt | - | - | 734 | 1,231 | 734 | 849 |
1 In cash and cash equivalents at end of period SEK 107 M refers to discountinued operations.
CONSOLIDATED
Quarterly overview - Consolidated earnings, share data and cash flow
| 2010 | 2009 | 2008 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amounts in SEK M | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Order intake | 1,029 | 861 | 775 | 777 | 1,029 | 1,002 | 916 | 873 | 1,043 | 914 |
| Income statement | ||||||||||
| Net sales | 910 | 772 | 902 | 877 | 1,013 | 967 | 1,073 | 911 | 903 | 876 |
| Operating expenses | -823 | -732 | -784 | -804 | -934 | -975 | -989 | -836 | -823 | -804 |
| EBIT | 87 | 40 | 118 | 73 | 79 | -8 | 84 | 75 | 80 | 72 |
| EBIT margin | 9.6% | 5.2% | 13.1% | 8.3% | 7.8% | -0.8% | 7.8% | 8.2% | 8.9% | 8.2% |
| Financial income and expense | -3 | -4 | -4 | -13 | -16 | -17 | -13 | -12 | -13 | -13 |
| Earnings after financial items | 84 | 36 | 114 | 60 | 63 | -25 | 71 | 63 | 67 | 59 |
| Taxes | -27 | -16 | -50 | -26 | -15 | -1 | -38 | -23 | -24 | -21 |
| Net earnings from continuing operations | 57 | 20 | 64 | 34 | 48 | -26 | 33 | 40 | 43 | 38 |
| Net earnings from discontinued operation | -7 | 17 | 30 | 1 | -21 | 4 | -15 | 0 | 6 | 20 |
| Net earnings | 50 | 37 | 94 | 35 | 27 | -22 | 18 | 40 | 49 | 58 |
| Depreciations and amortizations continuing operations | -19 | -19 | -19 | -21 | -23 | -22 | -21 | -18 | -17 | -24 |
| Statement of financial position | ||||||||||
| ASSETS | ||||||||||
| Fixed assets | ||||||||||
| Tangible assets | 298 | 535 | 569 | 590 | 658 | 688 | 664 | 619 | 592 | 577 |
| Intangible assets | 873 | 1,010 | 1,053 | 1,044 | 1,114 | 1,149 | 1,120 | 965 | 911 | 876 |
| Other fixed assets | 142 | 164 | 176 | 181 | 191 | 182 | 149 | 115 | 107 | 107 |
| 1,313 | 1,709 | 1,798 | 1,815 | 1,963 | 2,019 | 1,933 | 1,699 | 1,610 | 1,560 | |
| Current assets | ||||||||||
| Inventory etc. | 462 | 471 | 427 | 518 | 569 | 617 | 589 | 668 | 622 | 577 |
| Accounts receivable | 554 | 939 | 1,051 | 1,011 | 1,080 | 1,248 | 1,354 | 1,174 | 1,182 | 1,197 |
| Other receivables | 186 | 221 | 235 | 226 | 255 | 269 | 248 | 231 | 192 | 179 |
| Cash and cash equivalent | 326 | 401 | 458 | 369 | 367 | 352 | 490 | 251 | 242 | 242 |
| 1,528 | 2,032 | 2,171 | 2,124 | 2,271 | 2,486 | 2,681 | 2,324 | 2,238 | 2,195 | |
| Assets held for sale | 1,041 | - | - | - | - | - | - | - | - | - |
| TOTAL ASSETS | 3,882 | 3,741 | 3,969 | 3,939 | 4,234 | 4,505 | 4,614 | 4,023 | 3,848 | 3,755 |
| EQUITY AND LIABILITIES | ||||||||||
| Equity | 1,431 | 1,415 | 1,407 | 1,273 | 1,316 | 1,317 | 1,285 | 1,188 | 1,076 | 1,198 |
| Long-term liabilities | 217 | 271 | 287 | 293 | 304 | 328 | 308 | 245 | 240 | 239 |
| Interest-bearing liabilities | 975 | 985 | 1,131 | 1,262 | 1,410 | 1,586 | 1,694 | 1,418 | 1,392 | 1,214 |
| Accounts payable | 375 | 421 | 479 | 408 | 478 | 507 | 537 | 437 | 460 | 414 |
| Other current liabilities | 493 | 649 | 665 | 703 | 726 | 767 | 790 | 735 | 680 | 690 |
| 3,491 | 3,741 | 3,969 | 3,939 | 4,234 | 4,505 | 4,614 | 4,023 | 3,848 | 3,755 | |
| Liabilities held for sale | 391 | - | - | - | - | - | - | - | - | - |
| TOTAL EQUITY AND LIABILITIES | 3,882 | 3,741 | 3,969 | 3,939 | 4,234 | 4,505 | 4,614 | 4,023 | 3,848 | 3,755 |
| Statement of cash flows | ||||||||||
| From operating activities | 67 | 77 | 67 | 99 | 164 | -25 | 223 | 27 | 17 | -10 |
| From investing activities | -7 | -7 | -8 | -8 | -9 | -19 | -69 | -19 | -26 | -36 |
| From financing activities | -17 | -72 | -86 | -2 | -104 | -155 | 25 | -46 | -20 | 27 |
| Cash flow for the period from continuing operations | 43 | -2 | -27 | 89 | 51 | -199 | 179 | -38 | -29 | -19 |
| Cash flow for the period from discontinued operation | -22 | -45 | 77 | -88 | 17 | 53 | 32 | 34 | 28 | -8 |
| Cash flow for the period | 21 | -47 | 50 | 1 | 68 | -146 | 211 | -4 | -1 | -27 |
| Operating cash flow from continuing operations | 60 | 69 | 60 | 91 | 153 | -41 | 212 | 14 | 11 | -46 |
Quarterly overview - Divisions continuing operations
| 2010 | 2009 | 2008 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amounts in SEK M | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Order intake | ||||||||||
| Dehumidification division | 603 | 542 | 499 | 503 | 636 | 596 | 608 | 511 | 528 | 487 |
| HumiCool division | 430 | 333 | 278 | 278 | 401 | 413 | 314 | 369 | 525 | 436 |
| Eliminations | -4 | -14 | -2 | -4 | -8 | -7 | -6 | -7 | -10 | -9 |
| Order intake | 1,029 | 861 | 775 | 777 | 1,029 | 1,002 | 916 | 873 | 1,043 | 914 |
| Net sales | ||||||||||
| Dehumidification division | 556 | 452 | 558 | 556 | 598 | 588 | 645 | 495 | 478 | 433 |
| HumiCool division | 368 | 323 | 349 | 324 | 421 | 389 | 435 | 425 | 433 | 451 |
| Eliminations | -14 | -3 | -5 | -3 | -6 | -10 | -7 | -9 | -8 | -8 |
| Net sales | 910 | 772 | 902 | 877 | 1,013 | 967 | 1,073 | 911 | 903 | 876 |
| Operating earnings | ||||||||||
| Dehumidification division | 68 | 32 | 106 | 65 | 66 | 14 | 75 | 48 | 45 | 33 |
| operating margin | 12.2% | 7.1% | 19.0% | 11.7% | 11.0% | 2.4% | 11.7% | 9.6% | 9.5% | 7.6% |
| HumiCool division | 35 | 22 | 31 | 20 | 31 | -11 | 23 | 36 | 44 | 51 |
| operating margin | 9.5% | 6.9% | 8.6% | 6.3% | 7.3% | -2.8% | 5.5% | 8.5% | 10.2% | 11.4% |
| Group overheads, eliminations etc. | -16 | -14 | -19 | -12 | -18 | -11 | -14 | -9 | -9 | -12 |
| Earnings before interest and tax | 87 | 40 | 118 | 73 | 79 | -8 | 84 | 75 | 80 | 72 |
| EBIT margin | 9.6% | 5.2% | 13.1% | 8.3% | 7.8% | -0.8% | 4.0% | 8.2% | 8.9% | 8.2% |
| Operating capital | ||||||||||
| Dehumidification division - Assets | 736 | 672 | 716 | 721 | 798 | 883 | 855 | 703 | 675 | 649 |
| Dehumidification division - Liabilities | -263 | -222 | -213 | -225 | -260 | -267 | -265 | -179 | -195 | -173 |
| HumiCool division - Assets | 628 | 575 | 606 | 627 | 691 | 759 | 787 | 821 | 818 | 767 |
| HumiCool division - Liabilities | -186 | -146 | -180 | -157 | -179 | -178 | -206 | -239 | -251 | -225 |
| Central, eliminations | 76 | 71 | 79 | 73 | 80 | 82 | 79 | 59 | 52 | 65 |
| Operating capital | 991 | 950 | 1,008 | 1,039 | 1,130 | 1,279 | 1,250 | 1,165 | 1,099 | 1,083 |
| Permanent employees | ||||||||||
| Dehumidification division | 1,199 | 1,197 | 1,198 | 1,214 | 1,238 | 1,293 | 1,301 | 1,173 | 1,196 | 1,184 |
| HumiCool division | 859 | 783 | 797 | 788 | 805 | 795 | 866 | 908 | 914 | 959 |
| Central | 24 | 25 | 22 | 23 | 23 | 25 | 24 | 24 | 24 | 21 |
| Number of permanent employees | 2,082 | 2,005 | 2,017 | 2,025 | 2,066 | 2,113 | 2,191 | 2,105 | 2,134 | 2,164 |
Operating capital consists of accounts receivable (external and internal), inventory, accounts payable, advances from customers and fixed assets excluding goodwill.
CONSOLIDATED
Key figures and financial overview
| 2,010 | 2,009 | 2,008 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Equity ratio, % | 36.9 | 37.8 | 35.4 | 32.3 | 31.1 | 29.2 | 27.8 | 29.5 | 28.0 | 31.8 |
| Net debt, SEK M | 734 | 761 | 849 | 1,080 | 1,231 | 1,423 | 1,390 | 1,311 | 1,292 | 1,119 |
| Net debt ratio, times | 0.5 | 0.5 | 0.6 | 0.9 | 0.9 | 1.1 | 1.1 | 1.1 | 1.2 | 0.9 |
| Interest coverage ratio, times | 10.9 | 9.5 | 12.9 | 9.9 | 3.6 | 0.2 | 3.1 | 3.6 | 5.5 | 6.3 |
| Interest coverage ratio, times (4 quarters) | 10.9 | 8.3 | 5.3 | 3.3 | 2.7 | 3.1 | 4.4 | 6.0 | 7.5 | 8.6 |
| Capital turnover rate, times (4 quarters) | 2.8 | 2.2 | 2.2 | 2.3 | 2.4 | 2.4 | 2.4 | 2.5 | 2.5 | 2.6 |
| Investments in tangible assets continuing operations, SEK M |
10 | 8 | 8 | 10 | 11 | 15 | 13 | 13 | 7 | 36 |
| Profitability ratios | ||||||||||
| Return on equity, % | 6.2 | 2.6 | 2.9 | 2.7 | 2.0 | -1.7 | 1.5 | 3.5 | 4.3 | 4.8 |
| Return on equity, % (4 quarters) | 14.5 | 10.2 | 6.0 | 4.6 | 5.1 | 7.0 | 13.8 | 21.4 | 26.1 | 25.4 |
| Return on capital employed, % | 6.2 | 2.7 | 5.3 | 3.6 | 2.0 | 0.1 | 2.6 | 3.1 | 3.6 | 4.2 |
| Return on capital employed, % (4 quarters) | 17.4 | 13.1 | 10.4 | 8.2 | 7.9 | 9.4 | 13.6 | 17.8 | 20.8 | 22.8 |
| Return on total capital, % (4 quarters) | 11.9 | 9.0 | 7.1 | 5.6 | 5.4 | 6.4 | 9.2 | 12.1 | 14.1 | 15.3 |
| Share data | ||||||||||
| Earnings per share continuing operations, SEK | 0.77 | 0.28 | 0.87 | 0.46 | 0.64 | -0.34 | 0.45 | 0.54 | 0.57 | 0.51 |
| Earnings per share after dilution cont. operations, SEK | 0.77 | 0.28 | 0.87 | 0.46 | 0.64 | -0.34 | 0.45 | 0.54 | 0.57 | 0.51 |
| Earnings per share, SEK | 0.67 | 0.50 | 1.27 | 0.47 | 0.36 | -0.29 | 0.24 | 0.53 | 0.66 | 0.78 |
| Earnings per share after dilution, SEK | 0.67 | 0.50 | 1.27 | 0.47 | 0.36 | -0.29 | 0.24 | 0.53 | 0.66 | 0.78 |
| Equity per share, SEK | 19.28 | 19.06 | 18.94 | 17.13 | 17.71 | 17.72 | 17.28 | 15.99 | 14.48 | 16.11 |
| Equity per share after dilution, SEK | 19.28 | 19.06 | 18.94 | 17.13 | 17.71 | 17.72 | 17.28 | 15.99 | 14.48 | 16.11 |
| Average no of shares outstanding, thousand | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 |
| No of shares outstanding at period-end, thousand | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 | 73,933 |
| Number of treasury shares, thousand | 1,067 | 1,067 | 1,067 | 1,067 | 1,067 | 1,067 | 1,067 | 1,067 | 1,067 | 1,067 |
| Stock price at period-end, SEK | 47.70 | 52.00 | 46.60 | 50.00 | 37.20 | 23.50 | 38.40 | 48.50 | 57.25 | 68.50 |
| Market cap at period-end, SEK M1 | 3,578 | 3,900 | 3,495 | 3,750 | 2,790 | 1,763 | 2,880 | 3,638 | 4,294 | 5,138 |
No of outstanding shares as per closing day amounts to 73 933 050
The market cap is calculated on total number of shares, including treasury shares
Personnel
| Number of permanent employees at period-end, remaining business | 2,082 | 2,005 | 2,017 | 2,025 | 2,066 | 2,113 | 2,191 | 2,105 | 2,134 | 2,164 |
|---|---|---|---|---|---|---|---|---|---|---|
| Number of permanent employees at period-end, including discontinued operations |
3,832 | 3,778 | 3,822 | 3,879 | 3,955 | 4,072 | 4,135 | 4,047 | 4,086 | 4,102 |
Financial overview Group - 5 years
| 2,010 | 2009 | 2008 | 2007 | 2006 | |
|---|---|---|---|---|---|
| Q2 | Q2 | Q2 | Q2 | Q2 | |
| Continuing operations | |||||
| Sales and earnings | |||||
| Net sales, SEK M | 910 | 1,013 | 903 | 919 | 821 |
| EBIT, SEK M | 87 | 79 | 80 | 109 | 100 |
| EBIT margin, % | 9.6 | 7.8 | 8.9 | 11.9 | 12.2 |
| Net earnings, SEK M | 66 | 30 | 70 | 67 | 64 |
| Earnings per share, SEK | 0.67 | 0.36 | 0.51 | 0.90 | 0.93 |
| Total, including discontinued operation | |||||
| Business and financial ratios | |||||
| Return on equity, % | 6.2 | 2.0 | 4.3 | 5.2 | 5.5 |
| Return on capital employed, % | 6.2 | 2.0 | 3.6 | 4.8 | 7.1 |
Definitions of the financial key figures can be found on page 73 in the Annual Report 2009.
PARENT COMPANY
MUNTERS AB
| Income statement | 2010 | 2009 | 2,010 | 2,009 | 2009/2010 | 2009 |
|---|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
| Amounts in SEK M | 3 months | 3 months | 6 months | 6 months | 12 months | 12 months |
| Net sales | 15 | 14 | 30 | 27 | 65 | 62 |
| Gross earnings | 15 | 14 | 30 | 27 | 65 | 62 |
| Other operating income | 0 | 1 | 0 | 1 | 1 | 2 |
| Selling expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Administrative expenses | -30 | -34 | -61 | -55 | -139 | -133 |
| Other operating expenses | 0 | 0 | 0 | 0 | 1 | 1 |
| EBIT - Earnings before interest and tax | -15 | -19 | -31 | -27 | -72 | -68 |
| Financial income and expenses | 116 | 19 | 154 | 25 | 155 | 26 |
| Earnings after financial items | 101 | 0 | 123 | -2 | 83 | -42 |
| Transfer to tax allocation reserve | - | - | - | - | -3 | -3 |
| Income taxes | 1 | 4 | 2 | 4 | 11 | 13 |
| Net earnings | 102 | 4 | 125 | 2 | 91 | -32 |
Balance sheet
| 2010 | 2,010 | 2,009 | 2009 | |
|---|---|---|---|---|
| Amounts in SEK M | 30 Jun | 31 Mar | 31 Dec | 30 Jun |
| ASSETS | ||||
| Fixed assets | ||||
| Equipment, tools, fixtures and fittings | 6 | 5 | 6 | 6 |
| Patent, licenses and similar rights | 15 | 17 | 18 | 18 |
| Participations in subsidiaries | 985 | 904 | 904 | 800 |
| Receivables from subsidiaries | 1,021 | 1,120 | 1,247 | 1,576 |
| 2,027 | 2,046 | 2,175 | 2,400 | |
| Current assets | ||||
| Receivables from subsidiaries | 55 | 52 | 57 | 44 |
| Other receivables | 43 | 33 | 34 | 41 |
| Cash and cash equivalents | 87 | 104 | 148 | 61 |
| 185 | 189 | 239 | 146 | |
| TOTAL ASSETS | 2,212 | 2,235 | 2,414 | 2,546 |
| EQUITY AND LIABILITIES | ||||
| Equity | 1,074 | 1,047 | 1,024 | 1,008 |
| Untaxed reserves | 22 | 22 | 22 | 19 |
| Long-term liabilities | ||||
| Interest-bearing liabilities | 938 | 946 | 1,091 | 1,359 |
| Provisions | 39 | 39 | 39 | 39 |
| 977 | 985 | 1,130 | 1,398 | |
| Current liabilities | ||||
| Liabilities to subsidiaries | 114 | 159 | 213 | 100 |
| Accounts payable | 3 | 3 | 2 | 5 |
| Other liabilities | 22 | 19 | 23 | 16 |
| 139 | 181 | 238 | 121 | |
| TOTAL EQUITY AND LIABILITIES | 2,212 | 2,235 | 2,414 | 2,546 |
Notes
Note 1. Accounting policies
Like the annual accounts for 2009, the consolidated financial statements for the second quarter of 2010 were prepared in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU and with the Swedish Annual Accounts Act. The Parent Company's financial statements were prepared in compliance with the Swedish Annual Accounts Act and with the Swedish Financial Reporting Board's recommendation RFR 2.2 Accounting for Legal Entities.
This quarterly report has been prepared in accordance with IAS 34. In this document, the term "IFRS" includes the application of both IAS and IFRS, and the interpretations of these standards published by the IASB's Standards Interpretation Committee (SIC) and its International Financial Reporting Interpretations Committee (IFRIC).
The Group uses the same accounting policies as described in its 2009 Annual Report. New and revised IFRSs that became effective after January 1, 2010 did not affect Munters' financial position or earnings.
Note 2. Divestment of MCS division
Munters signed an agreement to divest its MCS division during the second quarter of 2010. Since the transaction is expected to be completed in the third quarter, the figures referring to the divestment in this interim report are preliminary.
In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, net earnings from MCS are recognized under the item "Net earnings from discontinued operations" in the "Consolidated statement of comprehensive income." This entails that income and expense for MCS have been excluded from other profit/loss items for the current period and all earlier periods. In the "Statement of cash flows," MCS is recognized under the heading "Cash flow from discontinued operations." Comparisons are based on the segment reporting for MCS. Adjustments have also been made to allocate historical financing and tax expenses to MCS.
Assets and liabilities attributable to MCS are recognized on separate lines in the "Statement of financial position" as of June 30, 2010, under the respective items "Assets held for sale" and "Liabilities held for sale." In the "Statement of financial position" for earlier periods, the MCS division's assets and liabilities have not been separated from the other areas of the Group, but rather correspond with the previously published "Statement of financial position."
This report is a translation of the Swedish version. In the event of any discrepancies between this translation and the Swedish version, the Swedish shall prevail.