Weak demand within Nolato Telecom during the quarter. Strong improvement for other business areas.
In today’s three-month interim report, Nolato has reported sales of SEK 759 million (746) and operating income (EBITA) of SEK 44 million (63). Earnings per share stood at SEK 1.06 (1.71), with cash flow after investments of SEK 111 million (0).
“As announced previously, a drop in demand for Nolato Telecom’s existing product portfolio had a negative impact on sales and income for the first quarter,” says Hans Porat, President and CEO of Nolato. “Following a strong start at the beginning of the year, demand fell dramatically following the Chinese New Year in early February.
“However, improvements within other business areas compensated for this drop to some extent.”
Nolato Medical’s sales rose by 25% to SEK 232 million (186), with operating income (EBITA) up 22% to SEK 28 million (23).
“The majority of the business area’s customer segments experienced strong growth in volumes, and operations have developed very much in line with market growth.”
Nolato Telecom’s sales fell by 19% to SEK 259 million (320), with operating income (EBITA) of SEK –4 million (32).
“New customer project start-ups are underway, and these will gradually replace the older product portfolio,” continues Mr Porat. “However, there is a general sense of uncertainty in the market in relation to access to electronic components as a result of the natural disasters in Japan, and it is expected that this will affect volumes and the timings of new project start-ups during 2011.”
Nolato Industrial’s sales rose by 11% to SEK 268 million (241), with operating income (EBITA) up 47% to SEK 25 million (17).
“Strong demand, market position gains and new products have all contributed towards higher sales,” explains Mr Porat.
Nolato continues to enjoy a strong financial position. Financial net assets stood at SEK +80 million (–44), with an equity/assets ratio of 54%.