Systemair AB predicts lower than expected earnings in the fourth quarter of 2017/18

Skinnskatteberg, Sweden, 31 May 2018: Systemair AB predicts its fourth quarter 2017/18 earnings are likely to be lower than market expectations, and estimates that its operating profit will decline to SEK 5 million (USD 558,800), the company announced in a Press communiqué. Adjusted for the items affecting comparability, the operating profit is estimated at SEK 49 million (USD 5,477,710) the communiqué said. Net sales are estimated to increase by 5.4% to SEK 1,827 million (USD 204,091,246) the communiqué further said.

According to Systemair, the company had signed an agreement in May 2018 to divest its Norwegian subsidiary Reftec A/S, which resulted in a goodwill impairment cost of SEK 11.2 million (USD 1,251,134) accounted for in the fourth quarter of 2017/18, the communiqué said. Reftec will continue to exclusively distribute Systemair AC products in the Norwegian market, the communiqué further said. During the fourth quarter, Systemair has also recognised a provision for anticipated bad debts of SEK 12.2 million (USD 1,363,574), which relates to a larger customer in the Middle East, the communiqué added.

According to Systemair, all figures are preliminary and have not been finally audited by the company’s auditor. The communiqué said Systemair will publish its interim report for the fourth quarter 2017/18 as planned on June 14, 2018.