Lantmännen reported a profit of MSEK 256 for the second quarter, after net financial items and adjusted for items affecting comparability; this can be compared with last year’s profit which stood at MSEK 286. The Agriculture and Machinery Sectors are continuing to develop positively, while rising commodity prices and economic factors are reducing development in the Food and Energy Sectors. All figures quoted below have been adjusted for items affecting comparability.
“The results for the second quarter of 2011 show that the strategies we have adopted are continuing to bear fruit,” says Per Strömberg, Lantmännen CEO and Group President.
The programs for structural and supply chain savings are continuing, while Shape, which was set up to reduce administration costs, has already achieved its 2012 target of MSEK 400 in savings, with planned activities still in the pipeline that will generate further savings.
The Agriculture Sector reported an operating loss for the period of MSEK 11 (6). SW Seed and international operations developed positively. The loss from contribution-related operations stood at MSEK 16 (7). The results for the quarter should be seen in the light of 2010’s high sales volumes of fertilizer following the abolition of the fertilizer tax and the fact that fertilizer sales were mostly reported in the first quarter, which had a negative impact on the second quarter compared with 2010. The ONE Lantmännen Lantbruk action program, which aims to increase competitiveness and place more focus on customers, continues to produce results. For example, this year’s spring cultivation was carried out successfully, with lower numbers of express and part deliveries, and a reduction in the number of complaints.
The operating profit for the Machinery Sector amounted to MSEK 162 (124) this quarter. The sector is continuing to develop in a very positive direction – mostly due to Swecon, which is developing positively in both Sweden and Germany. The integration of Könicke Baumaschinen is continuing as planned and the agricultural machinery operations reported a stable profit that was on a par with 2010.
The unfavorable price relationship between ethanol and grain remains, resulting in the Energy Sector reporting an operating loss of MSEK 28 (3) for this quarter. Lantmännen Agroetanol’s operations suffered a substantial loss in this period.
The Food Sector reported an operating profit of MSEK 183 (223) for the period. Rising commodity prices and a halt in the demand for consumer goods had a negative effect on the profit for the first six months of the year. Lantmännen Kronfågel’s new plant in Valla and Lantmännen Unibake’s bakery in Bedford, UK have started operating, with start-up costs having a negative effect of MSEK 35 on profits.
“We are continuing to focus on our key efficiency programs, but we are also giving even higher priority to our five focus areas for profitable growth – portfolio strategy, price & mix, innovation, marketing and competence & leadership,” concludes Per Strömberg
f you have any questions, please contact:
Per Strömberg, Lantmännen Group President and CEO, tel. 0703-85 11 91
Per Olof Nyman, Deputy CEO and CFO at Lantmännen, tel. 0706-57 42 47
The interim report is available digitally at: www.lantmannen.com/delarsrapport