The financial crisis strongly affected the Perstorp Group, primarily during the first quarter, with lower volumes and falling prices. Compared to 2008, sales still rose 3% during the year to SEK 12,542 m, due to acquisitions. However, on a pro-forma basis Group sales decreased 18% during 2009, of which 9% was related to a decline in volumes.
Lower volumes and a price fall for the product TDI affected the operating profit before depreciation and amortization (EBITDA) which reached SEK 986 m (1,670). Adjusted for non-recurring items, the profit was SEK 1,100 m (1,723). Recovery began at the start of the second quarter. During 2009 a cost savings program and efficiency improvements were implemented, which resulted in a 20% decrease in the work force and major cost savings.
“Last year, we focused on improving efficiency and implementing rationalizations, in addition to developing a solid strategic direction for Perstorp for the next years. This work, together with a reinforced balance sheet from shareholders’ contributions in 2009, delivered a strong springboard that makes us well prepared to take on 2010 with confidence,” President and CEO Martin Lundin says.
During the fourth quarter Perstorp reached an agreement with its banks, to improve the Group´s flexibility, including new financial covenants.
The Year-end Report 2009 is available here >>
