Nolato year-end report: Strong cash flow – substantial growth for Nolato Medical
In today’s year-end report, Nolato posted an increase in sales of 20 percent compared to 2006. EBITA, excluding non-recurring items, was SEK 209 M (221).
• Sales increased to SEK 2,702 M (2,256)
• EBITA excluding non-recurring items was SEK 209 M (221)
• Non-recurring items totaled SEK 130 M (0)
• Income after financial items was SEK 69 M (208)
• Cash flow after investments was SEK 142 M (158) excluding aquisitions
“Nolato Telecom’s sales increased 33 percent and its earnings excluding non-recurring items was SEK 124 M (137). Unfortunately, strong earnings were impaired by a one-time provision of SEK 125 M for our German customer BenQ’s feared bankruptcy,” noted Georg Brunstam, who is President and CEO of Nolato.
Nolato Medical continued its strong growth in 2006 and increased sales 33 percent. Organic growth was 23 percent. The acquisition of Medical Rubber, which was carried out on November 1, proceeded as planned, and the company has had a positive impact on earnings per share since its takeover.
“The acquisition is completely in line with our strategic plans and has enhanced Nolato Medical’s position as a leading manufacturer of systems components in medical technology,” added Mr. Brunstam.
Nolato Industrial reported an increase in both sales and income.
“We have streamlined production and invested in both Swedish and Hungarian operations. Our investments in the automotive industry have also yielded good results,” Mr. Brunstam said.
The Board of Directors proposes an unchanged dividend of SEK 2.40 per share.
For the first quarter of 2007, Nolato expects that, given Nolato Telecom’s normal seasonal variation, temporarily low volumes in a major customer project in progress and the loss in sales to BenQ, Nolato Telecom’s sales will decrease 20–25 percent compared with the fourth quarter of 2006. Nolato Medical is expected to continue its growth in sales in the first quarter of 2007, while sales at Nolato Industrial are expected to be stable.
Torekov January 31, 2007
Nolato AB (publ)
The Board of Directors