Year-End 2009
- Net turnover amounted to SEK 13,700 M (14,280).
- Net profit for the year was SEK 114 M (loss: 110) and earnings per share SEK 5.45
(LPS: 5.35).
- Cash flow after net investments amounted to SEK 585 M (581).
- A dividend of SEK 3.00 (-) per share is proposed. 1)
Fourth quarter
- Net turnover amounted to SEK 3,838 M (3,335).
- Operating profit excluding items affecting comparability amounted to SEK 102 M (9).
- Profit for the period was SEK 84 M (loss: 152) and earnings per share SEK 4.00
(LPS: 7.40).
In a comment on the fourth quarter, Bilia¡¦s Managing Director Jan Pettersson says:
"The earnings improvement is above all attributable to increased sales of both new and used cars. The margin on used cars has also improved. The prospects for 2010 are considerably better than a year ago, with a larger order backlog of new cars, lower cost level and less tied-up capital. Furthermore, the market situation is much better in both Sweden and Norway."
Notable events during 2009
• The outcome of the new issue, which was completed in January 2009, was to bring in SEK 100 M to Bilia before issue expenses of SEK 6 M. The issue related to subordinated debentures in an amount of SEK 100 M and an associated issue of 5,000,000 warrants. The warrants entitle holders to subscribe for an equal number of Class A Bilia shares for SEK 20 each.
During the year, 3,834,319 options were exercised to subscribe for new shares, resulting in a new issue of SEK 77 M.
• Bilia concluded an agreement with BMW Sverige AB to acquire BMW¡¦s dealership in the Gothenburg area. The operation has been a part of Bilia since 16 May 2009.
• The long-standing dispute between Bilia¡¦s subsidiary Säfveån AB (formerly Probo) and the litigation company Pacta was resolved in Sep-tember when the parties agreed on a settlement. The settlement entails a cost for Säfveån of SEK 23 M, which was charged to third-quarter earnings.
Further information on the above events and other press information is available at www.bilia.com.
Fourth quarter 2009
Demand for new cars increased during the quarter compared with the same period last year. Demand for service was at the same level as last year.
Net turnover amounted to SEK 3,838 M (3,335). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 254 M or 8 per cent. The increase is mainly attributable to increased sales of new and used cars.
Operating profit amounted to SEK 85 M (loss: 117). Items affecting comparability reduced earnings by SEK 17 M (-126). If items affecting compa-rability are excluded, operating profit amounted to SEK 102 M (9). The increase is mainly attributable to increased sales of cars and a higher margin on sales of used cars. Earnings in the Service Business were slightly better than last year. Costs increased marginally, but were 1.2 percentage points lower in relation to net turnover than last year.
Action programmes
In response to the poorer market situation, it was decided early in 2008 to take steps to reduce costs. A decision was taken during the quarter to centralise the delivery function in Sweden which, together with additional measures in Denmark, is expected to reduce annual costs by about SEK 17 M. Action programmes during 2008 and 2009 are expected to give rise to an earnings effect of about SEK 350 M per year, of which SEK 270 M was realised during 2009 and SEK 343 M is expected to be realised during 2010 (see table on page 4). The action programmes mainly involve staff reductions. In view of the improved market situation in Sweden and Norway, there is judged to be no need for further action programmes in these countries.
Items affecting comparability (see table on page 4) amounted to SEK -17 M (-126), consisting of costs of SEK -17 M (-96) for action programmes. Last year¡¦s earnings were also charged with costs of SEK 30 M for impairment losses and disputes.
Net financial items amounted to SEK -6 M (-29). Last year¡¦s earnings include costs for the signing of a new bank agreement and issue expenses amoun-ting to SEK 16 M. The remaining improve-ment is mainly attributable to lower net debt. The net figure includes a profit share of SEK 5 M (7) from the indirect shareholding in Volvofinans Bank AB.
Tax for the period amounted to SEK +5 M (-6). Tax was affected during the quarter by a revaluation of tax-loss carryforwards, which resulted in a net increase of SEK 24 M in the tax asset (decrease: 45).
Profit for the period was SEK 84 M (loss: 152) and earnings per share SEK 4.00 (LPS: 7.40). Exchange rate changes only affected the profit marginally.
Total assets increased by SEK 287 M to SEK 4,717 M. The increase is mainly attributable to increased sales of cars during the quarter, which increased the amount of capital tied up in inventories and trade receivables.
Equity increased by SEK 154 M, amounting to SEK 1,425 M. The equity/assets ratio amounted to 30 per cent (23).
Investments and disposals amounted to a net of SEK 7 M (62). Replacement investments represent-ted SEK 5 M (7), expansion investments SEK 6 M (23), environmental investments SEK 0 M (3) and investments in new construction and additions to properties SEK 4 M (3). Net investments in leased vehicles and finance leases amounted to SEK -8 M (26).
Cash flow after net investments amounted to SEK 7 M (152). Net debt decreased by SEK 50 M during the quarter to SEK 214 M.
Liquidity continued to be strong during the quarter. At the end of December, Bilia had a value-dated balance of SEK 1 M. A new three-year bank agreement was signed with Nordea in November with a total credit limit of SEK 500 M.
The number of employees decreased by 10 during the quarter, amounting to 3,290.
Full year 2009
Demand for new cars and service was at a lower level than in 2008.
Net turnover amounted to SEK 13,700 M (14,280). For comparable operations and adjusted for exchange rate changes, net turnover decreased by about SEK 1,343 M or 9 per cent. The decrease is mainly attributable to lower sales of new cars.
Operating profit amounted to SEK 146 M (loss: 57). Items affecting comparability reduced ear-nings by SEK 60 M (-41). If items affecting com-parability are excluded, operating profit amounted to SEK 206 M (loss: 16). The underlying costs have declined by about SEK 195 M, which is the main explanation for the earnings improvement. An increased margin and slightly higher sales of used cars have also contributed to the earnings improvement.
Items affecting comparability (see table on page 4) amounted to SEK -60 M (-41) and consist of SEK -35 M (-124) in costs for action programmes and SEK -25 M (-12) in costs for disputes. This year¡¦s costs for disputes include a settlement cost of SEK -23 M in the Pacta dispute. Last year¡¦s earnings include costs of SEK 29 M for impairment losses and gains of SEK 124 M from property sales.
Net financial items amounted to SEK -30 M (-82). Last year¡¦s earnings include costs for the signing of a new bank agreement and issue expenses amounting to SEK 16 M. The remaining improvement is mainly attributable to lower net debt. The net figure includes a profit share of SEK 18 M (22) from the indirect shareholding in Volvofinans Bank AB.
Tax for the year amounted to SEK -2 M (28). Tax was affected by a revaluation of tax-loss carryforwards, which resulted in a net increase of SEK 24 M in the tax asset (decrease: 45).
Net profit for the year was SEK 114 M (loss: 110) and earnings per share SEK 5.45 (LPS: 5.35). Exchange rate changes reduced the profit by SEK 4 M.
Total assets decreased during the year by SEK 697 M to SEK 4,717 M. The decrease is mainly attributable to lower inventories and leased vehicles.
Equity increased by SEK 196 M, amounting to SEK 1,425 M. The equity/assets ratio amounted to 30 per cent (23).
Investments and disposals amounted to a net of SEK -103 M (49). Replacement investments represented SEK 20 M (39), expansion invest-ments SEK 17 M (54), environmental invest-ments SEK 1 M (5) and investments in new con-struction and additions to properties SEK 10 M (14). Net investments in leased vehicles and finance leases amounted to SEK -151 M (-63).
Cash flow after net investments amounted to SEK 585 M (581). Net debt decreased by SEK 606 M to SEK 214 M.
The number of employees decreased by 263 during the year, amounting to 3,290.
(For full report with tables, see attached file)
Gothenburg, 9 February 2010
Bilia AB (publ)
Board of Directors
For further information, please contact Jan Pettersson, Managing Director and CEO, or Gunnar Blomkvist, CFO, telephone +46 31 709 55 00.
Bilia AB (publ)
Box 9003, SE-400 91 Gothenburg, Sweden
Street address: Norra Långebergsgatan 3, Västra Frölunda
Telephone: +46 31 709 55 00
www.bilia.com
Corporate ID No.: 556112-5690
