Nolato reports continued improvement in earnings - 23 percent increase in third quarter
In today’s interim report, Nolato reported a sharp improvement in earnings for the third quarter. Compared to the same period in 2004, the Group’s income after financial items increased 23 percent to SEK 58 M (47). - Sales in the third quarter totaled SEK 535 M (540) - Operating income increased 15% to SEK 60 M (52) - Income after financial items increased 23% to SEK 58 M (47) - Income after tax increased 24% to SEK 47 M (38) - Earnings per share increased 23% to SEK 1.78 (1.45) - Income after financial items for 2005 expected to exeed income for 2004 “Good growth in volume and high capacity utilization, especially at Nolato Telecom and Nolato Medical, account for the continued increase in earnings,” noted Georg Brunstam, President and CEO of Nolato. During the third quarter, operating income at Nolato Telecom increased 6 percent to SEK 37 M (35), Nolato Industrial SEK 19 percent to 19 M (16) and Nolato Medical 83 percent to SEK 11 M (6). The growth in volume at Nolato Telecom was strong, and significant new customer projects were started up. At the same time, the continued shift from Europe to Asia entailed both lower cost and price levels for each unit delivered. The decision has been made to expand the logistics and assembly unit in Malaysia into a complete production facility, including both injection moulding and painting capacity. Nolato Industrial had stable volumes. The increase in operating income is explained to a large extent by the continued improvement in its Hungarian operations, through cost reductions and a new customer mix. Nolato Medical increased sales 20 percent compared to the third quarter of 2004. The sharp increase in earnings is the result of a favorable product mix as well as continued good volume and high capacity utilization. For the nine-month period January to September 2005, consolidated sales for Nolato were SEK 1,643 M (1,744). Operating income increased to SEK 151 M (148). Income after financial items increased to SEK 141 M (135). Income after tax increased to SEK 110 M (98). Earnings per share increased to SEK 4.18 (3.70). Cash flow after investments totaled SEK 96 M (180) and the equity/assets ratio was 48 percent (38).