Interim Reports Q3 2022 – Presentation

Highlights of the third quarter of 2022

  • Net sales increased to SEK 35,244m (30,929), corresponding to an organic sales growth of 1.2%. Strong price execution and mix improvements were partly offset by significantly lower volumes driven by weaker market demand.
  • Operating income amounted to SEK -385m (1,639), corresponding to a margin of -1.1% (5.3).
  • Operating income includes a negative non-recurring item of SEK 350m, related to the exit from the Russian market, impacting business area Europe. Excluding this non-recurring item, operating income amounted to SEK -35m, corresponding to a margin of -0.1% (5.3). In addition to the weaker market environment, supply chain imbalances resulted in a significantly elevated cost level, mainly in business area North America that reported a loss of SEK 1.2bn.
  • A Group-wide cost reduction and North America turnaround program was initiated in the quarter and is expected to have a SEK 4-5bn positive earnings contribution in 2023. The program is expected to lead to a restructuring charge of SEK 1.2-1.5bn in the fourth quarter of 2022.
  • Income for the period amounted to SEK -605m (1,143) and earnings per share were SEK -2.23 (3.98).
  • Operating cash flow after investments was SEK -1,483m (-198), mainly a result of the reported loss.