Positive Turnaround for Lantmännen in the Fourth Quarter of 2009
Lantmännen’s savings and efficiency programs produced their desired effect. The Group’s cash flow in the fourth quarter was positive for the third quarter in a row at MSEK 396 (- MSEK 404) which is primarily due to the extensive work being carried out to reduce operating capital.
16 Feb 2010 --- In the fourth quarter, Lantmännen reported a loss of MSEK 7 after net financial items and excluding items affecting comparability, compared with a loss of MSEK 100 in the fourth quarter of 2008. Lantmännen showed positive cash flow for the third quarter in a row. The results for this period also included MSEK 167 in structural costs.
“One positive feature is that the economic cycle seems to have bottomed out and we were able to see a cautious upturn at the end of 2009. Our results for the fourth quarter were in line with our plans,” says CEO and Group President Per Strömberg.
Lantmännen’s savings and efficiency programs produced their desired effect. The Group’s cash flow in the fourth quarter was positive for the third quarter in a row at MSEK 396 (- MSEK 404) which is primarily due to the extensive work being carried out to reduce operating capital.
The Energy sector reported an operating profit after items affecting comparability for the second quarter in a row, while the Food sector also continued to see a positive trend in the fourth quarter. The Energy sector’s operating profit after items affecting comparability amounted to MSEK 64 (- MSEK 36), with the Food sector reporting an operating profit of MSEK 157 (MSEK 100).
The Agriculture sector continued to show an operating loss of MSEK 16 after items affecting comparability for the fourth quarter (a profit of MSEK 154 for the same period in 2008). The Machinery sector reported a profit of MSEK 32 (MSEK 50), which is up on the previous quarter. The reason for these weak results was that the recession continued to hit the agricultural sector hard combined with the loss of fertilizer sales as a result of the Swedish government’s decision to exempt fertilizer from tax from 1 January 2010.
Lantmännen saw a fall in annual profits for 2009 compared with the previous year. Profit amounted to MSEK 85 in 2009 after net financial items and adjusted for items affecting comparability, compared with MSEK 622 in 2008.
“Although the Lantmännen Group reported a fall in profits compared with the previous year, we are cautiously optimistic that the economic situation is slowly starting to improve. The recovery may take longer for agriculture, but we still have a strong belief in our green industries,” says Per Strömberg.
