Brief: Nobia Q3 operating profit falls, to initiate cost savings programme

Nobia AB

26/10/2018 12:07

Oct 26 (Reuters) - Nobia AB  NOBI.ST :
    * Q3 NET SALES FOR Q3 AMOUNTED TO SEK 3,143 MILLION (2,905).
    * Q3 ORGANIC GROWTH WAS A NEGATIVE 5 PER CENT (NEG: 1)
    * Q3 OPERATING PROFIT AMOUNTED TO SEK 267 MILLION (318),
CORRESPONDING TO AN OPERATING MARGIN OF 8.5 PROCENT (10.9).
    * SAYS FINANCIAL TARGETS INCLUDING DIVIDEND POLICY REMAIN
UNCHANGED.
    * SAYS DUE TO UNCERTAINTIES IN OUR MAJOR MARKETS WE WILL
INITIATE
A COST- REDUCTION PROGRAMME TO ADJUST COST BASE AND SAFEGUARD
OUR PROFITABILITY
    * SAYS PROGRAMME WILL BE INITIATED DURING Q4 OF 2018 AND IS
EXPECTED TO GENERATE SAVINGS OF SEK 80 MILLION IN 2019 AND SEK
100 MILLION PER YEAR FROM 2020
    * SAYS MEASURES INCLUDE STORE CLOSURES AND STAFF REDUCTIONS
IN
BOTH COMMERCIAL UNITS AND PRODUCTION UNITS.
    * SAYS PROGRAMME WILL ENTAIL A RESTRUCTURING CHARGE OF SEK
80-100
MILLION IN Q4
    * SAYS WE BELIEVE THAT NORDIC KITCHEN MARKET WILL CONTINUE
TO
GROW, MAINLY DRIVEN BY DANISH AND FINNISH PROJECT MARKETS

Source text for Eikon:  ID:nWkr3RxNm5 
Further company coverage:  NOBI.ST 

 (Reporting By Stockholm newsroom)
 ((Stockholm.newsroom@thomsonreuters.com;))