CEO Håkan Jeppsson comments:

“Market conditions remained tough as we entered 2013. The lowest point that we thought we’d reached during the second half of last year has been replaced by further deterioration in the market. The fact is that volumes in our markets during the first quarter of this year were lower than they were in our worst year, 2009. As the market leader, we are clearly affected by these market conditions, which have resulted in a 6-percent decline in sales measured in local currencies and adjusted for structural effects. Sales during the quarter were also affected by the abnormally cold and long winter in Europe, combined with fewer working days than last year. But despite the surprisingly low volumes and price pressure, we have succeeded in defending our gross profit margins. I’m happy with that.

       Cost savings and work on streamlining our production structure have also had a positive impact during the quarter. I believe that we have good capacity control and can adapt to market fluctuations relatively swiftly. On the positive side, I would also like to highlight Finland, which has performed better during the first quarter of this year than last year. Furthermore, our industrial sales have been healthy, and order levels within this segment are looking good. Unfortunately we are suffering due to consumer restraint and total orders have dropped by 18 percent on 2012. We are also facing challenges in the Norwegian market, where we are undergoing a major process of change and are therefore unable to perform in line with expectations.

      Demand for our products will gradually increase as the days get longer and warmer. Meanwhile we continue to operate in an unsettled market. There are no major crises in the Nordic countries, which account for the majority of our business. However, consumers remain hesitant and are delaying purchasing decisions, which is having a negative impact on demand and increases price pressure. In addition, Northern Europe has weakened further, while the situation in Eastern Europe is more mixed. Considering the situation, we feel it will be difficult to catch up after the weak start to the year. We are still convinced that our strategic direction, with improved offerings to consumers and investments in product development, is the way forward, although the current focus is primarily on efficiency, structure and synergy effects. Inwido is now a streamlined company that enjoys a strong market position, which means we are well prepared for a recovery in the market.”

Read the entire report in the pdf attached