• Net sales increased by six per cent to SEK 5,044.3M (4,757.7).
• Operating profit increased to SEK 484.0M (280.1) including a capital gain of SEK 140M from the divestment of Beijer Tech. 
• Profit after tax rose to SEK 398.7M (192.1) including the capital gain of SEK 140M.
• Profit per share increased to SEK 18.85 (9.39). Excluding the capital gain, profit per share amounted to SEK 12.25.
• The Board of Directors proposes a dividend of SEK 8.00 (6.50).
• Acquisitions in Thailand and Italy at the end of 2010 with expected combined annual sales of SEK 350M.

The above relates to the remaining operations and the capital gain from the divestment of Beijer Tech.

Group
The positive trend continued in the fourth quarter. The G & L Beijer Group reported an increased organic growth and also profit continued to improve. At the end of the first quarter, the Beijer Tech business area was divested. It means that Beijer Tech’s sales and results are not included in the figures reported below. Consolidated sales for 2010 increased by six per cent to SEK 5,044.3M (4,757.7). Sales for the fourth quarter increased by three per cent to SEK 1,178.1M (1,140.0). Organic growth, excluding currency exchange rate effects, amounted to 11 per cent.

Operating profit for the year rose to SEK 484.0M (280.1). The profit includes a capital gain of SEK 140M from the divestment of Beijer Tech. Excluding this gain, operating profit amounted to SEK 344.0M, equivalent to an increase of 23 per cent compared to previous year. For the fourth quarter, operating profit increased by 27 per cent to SEK 80.1M (62.9).

Beijer Ref
Beijer Ref’s full-year sales increased by six per cent to SEK 5,044.3M (4,757.7). Organic growth amounted to 10 per cent. The stronger Swedish currency affected sales negatively when translated into SEK. Sales for the fourth quarter increased by three per cent to SEK 1,178.1M (1,140.0). Organic growth amounted to 11 per cent for the quarter.

The trend from the previous quarter continued during the fourth quarter when virtually all markets in which Beijer Ref operates continued to show growth. Several markets, including South Africa, UK, Holland, Finland, France, Spain and Italy, reported especially positive sales growth.

Beijer Ref’s operating profit increased by 22 per cent to SEK 365.8M (299.3) for the year. Operating profit for the fourth quarter increased by 24 per cent to SEK 84.2M (67.9). The improved results are essentially explained by increased sales volumes, synergies from the acquisition of Carrier ARW and strict control of expenses.

Towards the end of the year, Beijer Ref made two acquisitions with expected total annual sales of approximately SEK 350M.

Consolidated profit before and after tax
The Group’s financial income/expense for the year amounted to SEK 1.0M (-9.6) and to SEK -0.5M (0.3) for the fourth quarter. Financial income/expense includes a share in profits of associated companies of SEK 8.0M (7.4) and SEK 2.0 M (1.2) for the respective period. Profit before taxes including the capital gain amounted to SEK 485.0M (270.5) for the full year. It increased by 26 per cent to SEK 79.6M (63.2) for the fourth quarter. Profit after tax amounted to SEK 398.7M (192.1) and to SEK 61.1M (40.6) for the respective period. Profit per share amounted to SEK 18.85 (9.39) for the full year. Excluding the capital gain of SEK 140M, profit per share amounted to SEK 12.25 (9.39) for the remaining operations.

Dividend
The Board of Directors proposes a dividend of SEK 8.00 per share (6.50).

Other financial information
Consolidated capital expenditure including acquisitions amounted to SEK 33.8M (1,132.5) for the full year. The cash flow from current operations amounted to SEK 244.2M (234.6). Liquid funds, including unutilised bank overdraft facilities, were SEK 478.4M (537.6) at the year end. Shareholders’ equity amounted to SEK 2,392.1M (2,175.5). Net indebtedness amounted to SEK 395.4M (400.2). The equity ratio was 60.3 per cent (54.3). The average number of employees during the period was 1,657 (1,591).

Significant events
During the first quarter, G & L Beijer divested its Beijer Tech business area to Beijer Alma. G & L Beijer received a consideration of 2.7 million newly-issued B shares in Beijer Alma and SEK 38.7M in cash. In total, the transaction is valued at approximately SEK 345M and G & L Beijer’s capital gain amounted to SEK 140M. The divestment of Beijer Tech was a move forward in the consolidation of G & L Beijer towards the refrigeration wholesale market.

As a result of the transaction, G & L Beijer became a significant shareholder in Beijer Alma. Beijer Tech’s sales amounted to SEK 141.8M (140.1) for the first quarter of 2010 and the average number of employees was 175. Operating profit amounted to SEK 6.3M (6.5).

During the third quarter, Beijer Ref signed a strategic agreement with the French GDF Suez group, a leading company within the energy sector. The agreement, which is a global general agreement, means that Beijer Ref becomes a preferred supplier to GDF Suez. This is the first agreement of its kind that Beijer Ref has signed with a global customer. 

In December, G & L Beijer acquired the assets in Carrier Corporation’s refrigeration wholesale operation in Thailand. The operation has yearly sales of approximately SEK 130M and has 50 employees. The acquisition was carried out through a jointly-owned company. Beijer’s share amounts to 49 per cent of the capital and just above 50 per cent of the votes. The acquisition was

another step forward in Beijer Ref’s global strategy where the Thai operation could form a platform for further expansion in South-East Asia. The acquisition did not impact the 2010 sales.

At the end of the year, G & L Beijer signed an agreement to acquire the Italian SCM Frigo group, which has annual sales of approximately SEK 220M. SCM Frigo designs, develops and builds chillers. The operation has 70 employees. The company is at the forefront of technical development of chillers for new environmentally-friendly solutions. SCM Frigo is also a leading supplier in Europe with regard to the assembly of conventional chillers. SCM Frigo is a strategic acquisition in a growing market. Environmentally-friendly and energy-efficient solutions are given increased priority within the refrigeration sector. Initially, G & L Beijer acquires 51 per cent of the shares in SCM Frigo with an option to acquire the remaining 49 per cent. 

Risk assessment
The operations of the G & L Beijer Group are affected by a number of external factors, the effects of which on the Group’s operating profit can be controlled to a varying degree. The Group’s operations are dependent on the general economic trend, especially in Europe, which controls the demand for Beijer Ref’s products and services. Acquisitions are normally linked with risks, for example staff defection. Other operating risks such as agency and supplier agreements, product responsibility and delivery undertaking, technical development, warranties, dependence on individuals, etc, are continually being analysed and, when necessary, action is taken to reduce the Group’s risk exposure. In its operations, G & L Beijer AB is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company’s risk picture is the same as that of the Group.

Financial information
- The Annual Report for 2010 will be published in April 2011.
- The Three-Month Report for 2011 will be published on 4 May 2011.

 
Malmö, 10  February 2011
G & L Beijer AB (publ)
Board of Directors

 
For further information, please contact:
Joen Magnusson, CEO
switchboard +46 40-35 89 00, mobile +46 709-26 50 91

Jonas Lindqvist, CFO
switchboard 040-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of an examination by the company’s auditors.

Accounting principles
This interim report has been prepared in accordance with IAS 34, the Annual Accounts Act and RFR 2.3.

G & L Beijer AB continues to apply the same reporting principles and valuation methods as those described in the latest Annual Report.

www.beijers.com