Nolato: Strong growth and healthy earnings


Nolato: Strong growth and healthy earnings

In today's three-month interim report, Nolato has reported strong growth and
healthy earnings. Sales rose by 23% to SEK 746 million (606), while operating
income (EBITA) increased to SEK 63 million (16). Earnings per share were SEK
1.71 (0.15).

“Demand has been high during the quarter, and all three business areas are
showing growth and good profitability,” says Hans Porat, President and CEO of
Nolato. 

Nolato Medical's sales rose by 4% (by 7%, excluding currency effects) to SEK 186
million, with operating income (EBITA) of SEK 23 million (24). Changes in
volumes were in line with market growth. As previously announced, capacity is
being increased in Hörby by 3,700 m² in order to create the optimum production
structure. This is expected to be complete at the end of the year.

Nolato Telecom's sales rose by a full 42% (by 55%, excluding currency effects)
to SEK 320 million, with operating income (EBITA) of SEK 32 million (0).
Capacity utilisation has been high during the period which, together with an
almost entirely new product mix, has had a positive impact on earnings. The new
production unit in Chennai, India, is now operational and developing well.

Nolato Industrial saw sales rise by 17% to SEK 241 million, while operating
income increased to SEK 17 million (-1). Demand has risen within most customer
segments, albeit from very low levels during the corresponding period in 2009. 

“We are pleased to note that our business areas have made progress during the
recession, and have won market shares,” adds Mr Porat.

Nolato continues to enjoy a strong financial position. Cash flow after
investments was SEK 0 million (56). This reduction is due to a temporary high
need for working capital within Nolato Telecom. Net debt stood at SEK 44 million
(28).

The complete report can be downloaded from www.nolato.com

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For further information, please contact:
Hans Porat, President and CEO, telephone +46 431 442294
Per-Ola Holmström, Executive Vice President and CFO, telephone +46 431 442293

The Nolato Group is a high-tech developer and manufacturer of polymer product
systems for leading customers in medical technology, telecom, hygiene,
automotive products and other ­selected industrial sectors. The average number
of employees during the first quarter was 7,448. Nolato's shares are quoted on
the Nasdaq OMX Nordic Exchange, Stockholm Small Cap, ­Information Technology.
www.nolato.com

Attachments

04282482.pdf nolato_q1_2010_en.pdf