CEO Håkan Jeppsson comments:
“As we have previously stated, the beginning of 2011 was weaker than expected. With another quarter now having passed, we can note that sales to the consumer market were relatively good in the first half of the quarter but then weakened again. At the same time, sales to the industrial market continued to rise. Despite somewhat lower sales overall during the quarter, I am very pleased with our improved profitability as a result of applied price increases and improved efficiency. In the Nordic region, with the exception of Norway, we continue to capture market shares. It is also positive that we have been able to increase our sales in the UK and Russia, which has improved the combined outcome for Europe, even though we continue to experience weakness in Ireland and Poland.
During the quarter, we acquired Pro Tec, one of Denmark’s leading suppliers of innovative windows and doors, and have begun to integrate it into our operations. The addition of Pro Tec broadens our offering, particularly towards architects and building companies.
Since most of our sales are made to consumers who are renovating or building their own properties, we are impacted by weaker confidence in the future among consumers who, in turn, are also likely to be affected by the general uncertainty prevalent in the global economy. In the current situation, it is unusually difficult to make projections regarding the future. The uncertainty surrounding the debt-burdened euro countries and the slow-down in the US economy are affecting the recovery, while mortgage ceilings and the removal of government subsidies are having a restraining effect on residential investment in the Nordic countries. We are monitoring developments in our markets carefully and implementing adjustments and efficiency measures in pace with changing circumstances. However, we see favourable opportunities to benefit from the increasing need for energy-saving measures and are persisting with our strategic focus on consumers and their well-being.”

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