(For full report, see attached file)
Nine months
* Net turnover amounted to SEK 11,637 (9,862).
* Operating profit was SEK 317 M (61) and the margin was 2.7 per cent (0.6).
* Profit for the period amounted to SEK 231 M (30) and earnings per share to SEK 9.35 (1.45).
Third quarter
* Net turnover amounted to SEK 3,737 M (3,253).
* Operating profit was SEK 105 M (38) and the margin was 2.8 per cent (1.2).
* Profit for the period amounted to SEK 78 M (27) and earnings per share to SEK 3.10 (1.35).
* Cash flow after net investments amounted to SEK 30 M (17).
In a comment on the third quarter, Bilia¡¦s Managing Director Jan Pettersson says:
"We once again delivered strong results. Sales of both cars and service increased and the cost level was lower. The market situation remains good and the order backlog increased sharply, amounting to 7,900 new cars at the end of the quarter, which is equivalent to about 3 months' sales. We are investing heavily in market communications and coming up with new concepts to further strengthen Bilia¡¦s position in the service market in particular."
|TABLE ID=155|
1) Items affecting comparability are shown on page 3.
2) The number of shares used in the calculation is shown in the table on page 9
Notable events during 2010
• An agreement was reached on 1 October on the sale of a property in Mölndal and the boards for the two parties have appro-ved the deal. The sale is expected to result in a gain after tax of about SEK 17 M. The book value of the property at mid-year was SEK 67 M. New construction is currently under way that includes a separate sales area for the MINI “Black Box”. The investment, which is included in the deal, is estimated at SEK 33 M and will be taken over and finished by the buyer. The date of possession is no later than 3 January 2011.
Events reported during previous quarters
• Since 17 October 2008, HQ Bank AB has acted as the market maker for the company’s share. Liquidity in the share has been strengthened, so there is no longer a need for a market maker. The agreement with HQ Bank AB expired on 1 July 2010.
• An agreement was concluded on 9 June for Bilia’s acquisition of all the shares in the BMW dealer Bilcentralen i Stockholm AB. The date of possession is 3 January 2011. The company’s annual turnover amounts to about SEK 600 M, and the average operating margin during the past three years was 4.1 per cent. The acquisition of Bilcentralen will increase the capital employed in the Bilia Group by about SEK 125 M.
Further information on the above events and other press information is available at www.bilia.com.
Third quarter 2010
Demand for new cars was at a higher level compared with the same period last year. Demand for service was somewhat higher compared with last year.
Net turnover amounted to SEK 3,737 M (3,253). Adjusted for exchange rate changes, net turnover increased by SEK 530 M or by 16 per cent. The increase is mainly attributable to sales of new cars.
Operating profit amounted to SEK 105 M (38). Last year’s profit included items affecting comparability of SEK -28 M. The improvement is mainly attributable to increased net turnover from sales of new cars. Turnover and earnings increased in the Service Business as well. The underlying costs increased by about SEK 42 M or 8 per cent, but were 1.7 percentage points lower in relation to net turnover than last year. The profit was charged with employee bonuses of SEK 12 M (0).
Items affecting comparability (see table on page 3) amounted last year to SEK -28 M and related to costs for restructuring of SEK 4 M and a settlement cost in the Pacta dispute of SEK 24 M.
Net financial items amounted to SEK -1 M (-5). The figure includes a profit share of SEK 7 M (3) from the indirect shareholding in Volvofinans Bank AB.
Tax for the period amounted to SEK -26 M (-6).
Profit for the period amounted to SEK 78 M (27) and earnings per share to SEK 3.10 (1.35). Exchange rate changes affected the profit marginally.
Total assets decreased during the quarter by SEK 139 M to SEK 4,685 M. The decrease is mainly attributable to lower trade receivables.
Equity increased by SEK 66 M, amounting to SEK 1,564 M. Exchange rate differences on translation of foreign subsidiaries’ equity affected the Group’s equity by SEK -13 M. The equity/assets ratio amounted to 33 per cent (29).
Investments and disposals amounted to a net of SEK 27 M (8). Replacement investments repre-sented SEK 7 M (1), expansion investments SEK 4 M (2), environmental investments SEK 1 M (1) and investments in new construction and additions to properties SEK 11 M (4), while finance leases amounted to SEK 4 M (0).
Cash flow after net investments amounted to SEK 30 M (17). Net debt decreased somewhat during the quarter, amounting to SEK 247 M. The record-high order backlog will result in large deliveries of new cars towards the end of the year. Capital tied up in inventories and trade receivables will therefore increase, which will affect cash flow and net debt negatively during the fourth quarter.
Liquidity continued to be strong during the quarter. At the end of September, Bilia had a net balance of SEK 4 M with Nordea. The credit limit with Nordea amounts to SEK 500 M.
The number of employees increased during the quarter by 15 and amounted to 3,276.
(For full report, including tables, see attached file)
