Hartmann's revenue was stable in Q3 2014, while operating profit fell back. The results are attributable to a slow sales development in Europe and a temporarily higher cost level related to the expansion of production capacity in North America. The expansion has been implemented and will contribute to our Q4 results. We maintain our guidance for the full year with revenue of DKK 1.6-1.7 billion and a profit margin of 9.0-10.5%. CEO Ulrik Kolding Hartvig says: "Even though revenue was stable in Q3, we are not satisfied with the results. We continued to grow the share of premium products, but sales in Europe were too low, and we incurred higher-than-expected costs in connection with the capacity expansion in North America." "In North America, we have now increased our production capacity and created a solid platform for profitable growth. In Europe, we expect progress already in Q4 when growing sales of retail packaging and the closing of finished deliveries in our technology business will contribute to the results." Q3 2014 * Total revenue came to DKK 373 million (2013: DKK 376 million) with operating profit* at DKK 26 million (2013: DKK 39 million), corresponding to a profit margin* of 7.0% (2013: 10.5%). Exchange rate fluctuations impacted negatively on revenue by DKK 6 million. * In Europe, revenue came to DKK 297 million (2013: DKK 303 million) with operating profit at DKK 21 million (2013: DKK 28 million), corresponding to a profit margin of 7.2% (2013: 9.3%). The development in sales was slow despite a continued higher share of premium products. * In North America, revenue grew to DKK 77 million (2013: DKK 73 million) with operating profit at DKK 10 million (2013: DKK 16 million), corresponding to a profit margin of 13.3% (2013: 21.8%). Sales continued to grow while a temporarily higher cost level related to the capacity expansion impacted adversely on revenue. * In consequence of the lower results, cash flows from operating activities were a net cash inflow of DKK 40 million (2013: DKK 51 million). 9M 2014 * In the first nine months of 2014, total revenue was DKK 1,137 million (2013: DKK 1,169 million) and operating profit DKK 88 million (2013: DKK 104 million), corresponding to a profit margin of 7.7% (2013: 8.9%). Exchange rate fluctuations impacted on revenue by a negative DKK 41 million and on operating profit by a negative DKK 15 million. * In Europe, revenue was DKK 919 million (2013: DKK 950 million) and operating profit DKK 71million (2013: DKK 73 million), corresponding to a profit margin of 7.7% (2013: 7.6%). Period-to-period fluctuations in Hartmann Technology had an adverse impact on revenue. * In North America, revenue was DKK 218 million (2013: DKK 219 million) and operating profit DKK 34 million (2013: DKK 49 million), corresponding to a profit margin of 15.8% (2013: 22.5%). * Cash flows from operating activities were a net cash inflow of DKK 92 million (2013: DKK 144 million), with return on invested capital at 18.5% (2013: 20.4%). Outlook 2014 * We maintain our full-year guidance of revenue of DKK 1.6-1.7 billion and a profit margin in the range of 9.0-10.5%. For further information, please contact: Ulrik Kolding Hartvig CEO Phone: (+45) 45 97 00 79 * References to operating profit and profit margin are before special items. [HUG#1871089]