CEO Håkan Jeppsson comments;
“The first half of 2012 was pervaded by short-sightedness and instability in Europe. These external factors affect all of the markets in which Inwido operates but have had differing significance for the individual businesses. On the whole, it can be said that most of our markets, except Sweden and Finland, have continued to develop in line with or better than in the year-earlier period. On the positive side, I would particularly like to highlight Denmark, where, despite tough market conditions, we have captured considerable market shares and increased our earnings. Following a year of major structural changes, the business of our components company, Supply, is now also healthy and stable. The divergence from last year is mainly to be found in Sweden and, to a certain extent Finland, which both experienced a very strong comparative period in 2011. Since Sweden accounts for a little less than 40 percent of our overall sales, an erratic trend and instability in this market has a greater impact on the Group as a whole than when the same thing happens in one of our smaller markets. Consequently, although eight out of ten business areas are delivering in line with or better than the previous year, overall profitability has declined compared with last year.

The explanation is to be found in the hesitation among Swedish consumers caused by general economic concerns, a weaker property market and the mortgage ceiling, which has, in particular, contributed to the considerable decline among manufacturers of prefabricated homes. To meet this more demanding market, we have, over the past year, implemented structural changes in our Swedish operations, while investing in both marketing and product development.

During the quarter, we also sold the Home Improvement business area. We believe this business will develop even better in another environment and we can, instead, focus our resources on pursuing our strategy and becoming the European leader in windows and doors. The second half of 2012 has now begun with market conditions that still feel a little uncertain, although somewhat more stable than before. Naturally there are a number of factors that may continue to affect consumers’ willingness to buy moving forward and we are prepared to shift either up or down a gear as necessary.”

Read the full report in the pdf attached