Earnings remain strong with solid return on capital
“We’re very pleased indeed that our strong performance continued in the third quarter,” says President and CEO of Nolato, Hans Porat.
Sales of the Nolato Medical business area rose 8% to SEK 310 million (288), which was well in line with market growth. Operating profit (EBITA) increased to SEK 41 million (32), and the EBITA margin rose to 13.2% (11.1).
“Most of the business area’s customer segments enjoyed solid volumes,” says Hans Porat. “The margin was positively affected by a favourable product mix.”
Sales of the Nolato Telecom business area rose 16% to SEK 516 million (444). Operating profit (EBITA) totalled SEK 35 million (35), with an EBITA margin of 6.8% (7.9).
“The gradual renewal of the product portfolio in the second half of the year, with a slightly higher proportion of materials, affected the margin,” comments Hans Porat.
Sales of the Nolato Industrial business area rose 9% to SEK 293 million (268). Operating profit (EBITA) climbed to SEK 33 million (24), and the EBITA margin to a very strong 11.3% (9.0).
“Volumes were stable and during the holiday period, there was higher demand this year than in the same period last year. Combined with high productivity and a favourable product mix, this gave a positive effect on the margin,” says Hans Porat.
Nolato’s Board resolved at its meeting today on the extension of the Hungarian factory by a further 3,700 square metres in order to enable further future expansion.
Nolato’s financial position remains strong. Return on capital employed for the past 12-month period was 25.5% (17.8). Net debt stood at SEK 75 million (323), with an equity/assets ratio of 45% (43).
The year-end report for 2013 will be released on 4 February 2014.
The AGM will be held on 28 April 2014.
For further information, please contact:
Hans Porat, President and CEO, +46 (0)705 517550
Per-Ola Holmström, CFO, +46 (0)705 763340
Nolato is a high-tech developer and manufacturer of polymer products for leading customers in medical technology, telecommunications, hygiene, automotive and other selected industrial sectors.
Its B shares are listed on the NASDAQ OMX Stockholm. Nolato is a Mid Cap company in the Industrials sector.
The information is such which Nolato AB is obliged to disclose under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was made public on 24 October 2013 at 2.30 pm.