Medical sales boost Nolato's Q3 performance

ERJ staff report (LMH)

Torekov, Sweden -- Sales at Swedish polymer maker Nolato AB have jumped 39 percent in the third quarter to SEK 999 million (Euro 115 million), while operating profit rose to SEK 84 million from SEK 54 million in Q3 2011.

"It is highly pleasing that our strong performance continued in the third quarter," says President and CEO of Nolato, Hans Porat.

In the Nolato Medical business, which includes moulded rubber and thermoplastic elastomer components, sales rose 31 percent to SEK 288 million. Operating profit increased to SEK 32 million, with an operating margin of 11.1 percent.

The newly acquired company in the UK, Nolato Jaycare, was consolidated on 1 April and accounted for SEK 67 million of the business area's sales in the quarter.

"Nolato Medical's product sales were in line with the market, while the project-related sales remained low," says Hans Porat. "The British unit acquired in the spring is performing according to plan."

In the Nolato Industrial business, which includes moulded rubber for automotive applications, Q3 sales were SEK 268 million, down from SEK 279 million during the same period in 2011. Operating profit was down to SEK 24 million, from SEK 26 million the year before. The operating margin was 9.0 percent.

Porat noted that at the end of the quarter Nolato noted “a cyclical slowdown for many of the segments in the business area."

Nolato's financial position remains strong. At the end of the quarter, net debt stood at SEK 286 million (66), with an equity/assets ratio of 45% (52). The net debt has risen as a consequence of financing the acquisition and an increased working capital requirement.

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News release from Nolato