Lantmännen’s profit for the third quarter remained stable. The company reported a profit of MSEK 446 after net financial items and adjusted for items affecting comparability; this can be compared with last year’s profit which stood at MSEK 431. The Agriculture and Machinery Sectors are continuing to develop positively, while high commodity prices and lower demand are stalling the development in the Energy and Food Sectors. All figures quoted below have been adjusted for items affecting comparability.
“Our profit for the third quarter of 2011 shows that we have adopted the right strategy and that we are continuing to develop in the right direction,” says Per Olof Nyman, Acting Group President and CEO of Lantmännen.
The Agriculture Sector developed strongly during the quarter, reporting an operating profit of MSEK 193 (MSEK 155). The profit for the cooperative operations stood at MSEK 119 (MSEK 59). This improvement in profit was mainly due to the sector’s action programme, which is continuing to have positive effects. Proof of this includes the successful harvest work and also the results of the savings programme.
The Machinery Sector also showed a very positive development, with an operating profit for the quarter of MSEK 136 (MSEK 78). Both Swecon and Lantmännen Maskin contributed to this positive result. Sales of agricultural machinery on the Norwegian and Danish market increased. Incoming orders for both agricultural and construction machinery were higher than the previous year. Swecon’s integration of Könicke Baumaschinen in Germany was completed during the quarter.
The unfavourable price relationship between ethanol and grain had a negative effect on the operating results of the Energy Sector for the quarter; it reported an operating loss of MSEK 34 (compared to an operating profit of MSEK 26).
The Food Sector reported an operating profit of MSEK 167 (MSEK 219) for the quarter. The fall in demand for consumer goods clearly hit the sector. The start-up costs of two major investments also had a negative effect on the profit: Lantmännen Kronfågel’s plant in Valla, and Lantmännen Unibake’s plant in Bedford, England.
“We are working with programmes in all our areas to offset the fluctuations in the economic cycle. At the very beginning of the quarter we intensified our efficiency programmes and identified potential short-term savings. We are also maintaining the pace in the other focus areas that we have prioritised to ensure profitable growth: price & mix, innovation and leadership,” concludes Per Olof Nyman.
If you have questions, please contact:
Per Olof Nyman, Acting Group President and CEO, and CFO tel +46 (0)706-57 42 47
Anette Rosengren, Communication Director, tel +46 (0)702-99 59 50
The interim report is available digitally at: www.lantmannen.com/interim reports