Nolato: Efficiency improvement measures produce results
In today’s interim report for the first six months of the year, Nolato has reported six-monthly sales of SEK 1,163 million, a drop of 16% compared with the same period during the previous year. Operating income (EBITA) was SEK 55 million, compared with SEK 120 million for the first six months of 2008. The cash flow stood at SEK 91 million (66), with net debt of SEK 72 million (333). "Nolato Medical is continuing to show healthy growth. The business area is focusing its efforts on being able to offer new and existing customers additional project management and technical resources, as well as a wider range of systems deliveries," explains Hans Porat, President and CEO of Nolato. Nolato Medical’s sales rose by 16% to SEK 355 million (305), with operating income (EBITA) rising to SEK 47 million (42). Nolato Telecom’s development is very much in line with previously-announced information, with low production volumes during the period. Sales fell 27% to SEK 409 million (561), with operating income (EBITA) of SEK 32 million (47). Excluding the SEK 35 million payment from the insolvency of former customer BenQ, earnings stood at SEK -3 million (47). "Nolato Telecom has a strong project portfolio, which is now gradually going into production," adds Mr Porat. Nolato Industrial’s results are affected by the general automotive and industrial market trends. Significant efficiency improvement measures have been carried out, and these had a full effect throughout the second quarter. Sales were down 22% to SEK 403 million (519), with operating income (EBITA) of SEK -8 million (40). Excluding costs connected with efficiency improvement measures, earnings stood at SEK 4 million (40). "Nolato Industrial is continuing to win market shares, and new project start-ups have gone some way towards countering the generally weak levels of demand," concludes Mr Porat.