Year-end report 2008
Strong sales, however fourth quarter generated a loss following dramatic currency fluctuations as well as extraordinary provisions Fourth quarter 2008: • Net sales in Q4 increased to SEK 121.1 m (113.9), an increase of 6.3 percent. • Operating loss (EBIT) of SEK 10.4 m (profit: 6.1), while the pre-tax loss amounted to SEK 10.6 m. • EBIT includes extraordinary items estimated at SEK -12.9 m, due to currency fluctuations and provisions for the restructuring of inventories. • Loss per share after tax of SEK 0.69 (profit: 0.32). • Order intake was SEK 105.5 m (82.1), an increase of 28.5 percent. Full-year 2008: • Net sales of SEK 362.5 m (346.3), an increase of 4.7 percent. • Operating loss (EBIT) of SEK 8.2 m (profit 9.2), while pre-tax loss of SEK 10.1 m. • Loss per share after tax of SEK 0.66 (profit: 0.43). • For the full-year cash flow from operations was negative at SEK 22.8 (negative: 30.2), mainly due to negative results and increase in working capital. Comments by the CEO, Jérôme Arnaud: ”In line with our strategy, 2008 was a year of steady growth in the Care Electronics business unit, off-setting lower sales in Home Electronics and Business Electronics. However, the expected positive results failed to materialize, due mainly to the exceptional impact of currency fluctuations in Q4 and a sudden general drop in consumer electronics consumption, primarily in the UK. The Doro Group's sales rose 6.3 percent, while order intake grew by 28.5 percent in the fourth quarter 2008, driven by continued growth in Care Electronics. This business unit doubled its sales compared with equivalent quarter in 2007, now accounting for 43.3 percent of total Group sales. At the same time sales in Home Electronics and Business Electronics' share of total sales continued to fall, decreasing by 21.7 percent in Q4. The achievements of Care Electronics have mainly been driven by its success of GSM products and its geographical expansion, including in the US market, which we entered in November. The rapid appreciation of the US dollar in late 2008 had a negative impact on our margins. Unstable exchange rates caused our Board to adopt a revised and structured hedge policy and our company increased prices. We see the acceptance of the latter by our customers as an evidence of the added value our niche products and as an affirmation of confidence in Doro. The sudden slow down in the economy has led us to streamline and simplify our operations our operations into two business units instead of three. Effective as of first quarter 2009, the business units Home Electronics and Business Electronics are merged to business unit Home. We firmly believe our Care strategy is driving the company toward profit. We have initiated even more aggressive measures to expand our share of the Care Electronics segment in our key markets, the Nordic region and Continental Europe, while we continue to establish the Doro brand in the US market. As we enter 2009, I am confident that Doro is in a better position to meet the challenges in the present market situation.” About Doro With over 30 years' experience in telephony Doro is today characterized by innovative and user-friendly consumer electronics products. The company develops markets and sells a wide range of products in three business units: Care Electronics, Home Electronics and Business Electronics. The company's products are sold in more than 30 countries worldwide through a variety of retail outlets, including electronics stores, online stores and specialized channels. The company had sales of SEK 363 million in 2008. Doro's shares are quoted on the Nasdaq OMX Nordic Exchange Stockholm, Small Cap. Read more about Doro at www.doro.com
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