Lantmännen: positive turnaround in Q4/2009

Stockholm / SE. (lg) In the fourth quarter the Swedish Lantmännen Group reported a loss of seven million Swedish Crowns (SEK) after net financial items and excluding items affecting comparability, compared with a loss of 100 million SEK in the fourth quarter of 2008. Lantmännen showed positive cash flow for the third quarter in a row. The results for this period also included 167 million SEK in structural costs.

«One positive feature is that the economic cycle seems to have bottomed out and we were able to see a cautious upturn at the end of 2009. Our results for the fourth quarter were in line with our plans», says CEO and Group President Per Strömberg. Lantmännen´s savings and efficiency programs produced their desired effect. The Group´s cash flow in the fourth quarter was positive for the third quarter in a row at 396 million SEK (minus 404 million SEK) which is primarily due to the extensive work being carried out to reduce operating capital.

The Energy sector reported an operating profit after items affecting comparability for the second quarter in a row, while the Food sector also continued to see a positive trend in the fourth quarter. The Energy sector´s operating profit after items affecting comparability amounted to 64 million SEK (minus 36 million SEK), with the Food sector reporting an operating profit of 157 million SEK (100 million SEK).

The Agriculture sector continued to show an operating loss of 16 million SEK after items affecting comparability for the fourth quarter (a profit of 154 million SEK for the same period in 2008). The Machinery sector reported a profit of 32 million SEK (50 million SEK), which is up on the previous quarter. The reason for these weak results was that the recession continued to hit the agricultural sector hard combined with the loss of fertilizer sales as a result of the Swedish government´s decision to exempt fertilizer from tax from 01 January 2010.

Lantmännen saw a fall in annual profits for 2009 compared with the previous year. Profit amounted to 85 million SEK in 2009 after net financial items and adjusted for items affecting comparability, compared with 622 million SEK in 2008. «Although the Lantmännen Group reported a fall in profits compared with the previous year, we are cautiously optimistic that the economic situation is slowly starting to improve. The recovery may take longer for agriculture, but we still have a strong belief in our green industries», says Per Strömberg.