Brief: Mekonomen Q4 EBIT Down At SEK 57 Million

Meko AB

14/02/2019 06:40

Feb 14 (Reuters) - Mekonomen AB  MEKO.ST :
    * SAYS IN JANUARY AND IN FIRST PART OF FEBRUARY WE HAVE NOTED THAT DEMAND HAS STABILISED
    * SAYS FOR FIRST HALF OF 2019, WE EXPECT MARKET TO AGAIN GROW 1-2 PER CENT IN NORDIC REGION
AND
4-5 PER CENT IN POLAND
    * PROPOSES NO DIVIDEND (LAST YEAR SEK 4,46)1)
    * ADJUSTED EBIT WAS ADVERSELY IMPACTED MAINLY BY LOWER SALES IN COMPARABLE UNITS AND LOWER
GROSS
MARGIN.
    * ACQUISITIONS OF MINOR OPERATIONS DURING YEAR HAVE HAD NEGATIVE IMPACT ON PROFITABILITY DUE
TO
INITIALLY LOW EBIT MARGINS
    * FOR FIRST HALF OF 2019, WE EXPECT MARKET TO AGAIN GROW 1-2 PER CENT IN NORDIC REGION AND
4-5 PER
CENT IN POLAND
    * DURING FIRST HALF OF 2019, ROUGHLY HALF OF MECA WORKSHOPS IN NORWAY WILL BE CERTIFIED TO
SERVICE
    * GROSS MARGIN WILL BE LOWER IN FIRST THREE QUARTERS OF 2019 COMPARED TO 2018
    * EBIT MARGIN OF INTER-TEAM WILL REDUCE GROUP EBIT MARGINS
    * MERGER OF MECA'S AND MEKONOMEN'S CENTRAL WAREHOUSES IN SWEDEN WILL GENERATE COST SAVINGS
OF SEK
50 M AS OF 2020
    * CONSIDERED IT PRUDENT AT THIS TIME TO REDUCE PROPOSED DIVIDEND UNTIL DEBT LEVELS, RELATIVE
TO
EARNINGS IMPROVES
    * CONTINUES TO SUPPORT LONGER TERM GOAL OF PAYING 50 PER CENT OF EARNINGS AS DIVIDENDS
    * COST-SAVINGS PROGRAMME IS COMMENCED THAT AIM TO REALISE COST REDUCTIONS OF SEK 65 M ON AN
ANNUAL
BASIS
    * AS A PART OF PROGRAMME WILL ACT ON UNPROFITABLE BUSINESSES AS WELL AS STREAMLINE OUR
ORGANISATION AND PRIORITISE PROJECTS
    * Q4 REVENUE SEK 2.92 BILLION VERSUS SEK 1.51 MILLION YEAR AGO
    * Q4 EBIT SEK 57 MILLION VERSUS SEK 96 MILLION YEAR AGO

Source text for Eikon:  ID:nWkr5RWc7V 
Further company coverage:  MEKO.ST 

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