STOCKHOLM – Note posted third quarter sales of SEK 433 million (US$49.2 million), down 0.23% year-over-year. Net income increased 27% to SEK 28 million, and operating profit was up 14% to SEK 36 million.

For the January to September period, sales increased 10% to SEK 1.4 billion. Profit after tax was up 27% year-over-year to SEK 84 million, and operating profit increased 25% to SEK 111 million.

“We continue to see a very strong development in Sweden, Finland and Estonia, especially from customers in industrial and medtech,” said Johannes Lind-Widestam, president and CEO, Note. “However, the extensive shutdown of the British economy is slowing our speed, which for the period overall limited our growth in Western Europe to 16% and 10%.

“In terms of results, our positive trend continued. Mainly as a result of growth, good cost development after implemented efficiencies and a strong development in Western Europe, not least in Sweden and Finland, operating profit increased by 25% to SEK 111 million. The operating margin strengthened by almost 1 percentage point to 7.9%.

“It is also gratifying that with the good growth and the positive earnings trend, we are also delivering strong cash flows.” Year to date cash flow, after investments, is SEK 128 million, and over the past 12 months cash from operations was SEK 224 million.

“We continue to win new customers and projects in a convincing way. The order situation is strong and about 10% over last year. During the fourth quarter, however, we expect continued fluctuations in volumes in ongoing customer assignments due to the current pandemic. After that, we continue to see very good opportunities to reach our long-term growth target of 10% per year.”

Ed.: SEK 1 = US$0.11