FlexLink Nine Months Report 2009
Sales continue to be lower than in 2008 but order intake has stabilized.
FlexLink's sales for the first nine months 2009 reached USD 108 million which is 32% lower than in the previous year. Expressed in fixed currency rates, the drop is 14%. The successful execution of the order backlog from last year is bringing some compensation for the weak investment climate. New products attract increased interest from customers in all FlexLink's industry segments.
Mattias Perjos, CEO: "The weak market climate remained through the third quarter, partly as a result of the European summer slowdown, and this is the main reason for the relatively low sales volume. Currency fluctuations had a significant negative impact on our EBITDA for the third quarter, but we continue to have a favorable sales mix, good cost control, and good results from our internal process improvement initiatives.
We have maintained investments in Product Development, and we expect this to be a competitive advantage as the market climate improves. We do expect to see an improvement going forward, albeit slowly and from a low level."
o Net sales for the third quarter were USD 34 (49) million and 108 (159) million for the nine month period, which is a decrease of 32 % compared to previous year. Expressed in fixed currency rates, the decrease was 14%.
o The order intake for the quarter was USD 34 (53) million and 106 (179) million for the nine month period. This corresponds to a drop of 41% compared to the previous year. Expressed in fixed currency rates, the decrease was 25%. The order intake level has stabilized but the weak investment climate in industrial markets is expected to continue.
o Earnings before interest, taxes, depreciation and amortization of intangible assets (EBITDA) were USD 1 (4) million for the third quarter. For the nine months, earnings were USD 8 (15) million and the EBITDA margin was 7% (10%). Currency exchange rates had a negative impact of USD 2 million on the third quarter EBITDA result.
o Newly launched products continue to show good results. The spiral elevator, launched in June has received strong interest from customers in FlexLink's major industry segments.
The financial information for 2009 and 2008 refers to the FlexLink Holding AB Group.
FlexLink is a leading production logistics supplier - providing material and information flow management solutions to assembly and manufacturing industries. Based in Goteborg, Sweden, FlexLink has 706 employees, operates 27 sales units and is represented in 60 countries. In 2008, group turnover was SEK 1,446 million ($ 219 million).
FlexLink Group
Mattias Perjos
CEO, FlexLink AB
+46-31-337 1626
mattias.perjos@flexlink.com
Klas Alander
Corporate communications, FlexLink AB
+46-31-337 2499
klas.alander@flexlink.com
FlexLink AB, SE-415 50 Göteborg, Sweden. Phone +46-31-337 3100, info@flexlink.com, www.flexlink.com
