This information is information that Ratos AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 19:20 p.m. CET on 2 February 2018.
Ratos's earnings for the fourth quarter of 2017 will be charged in an amount of approximately SEK 550m for the impairment of book values. Ratos's company portfolio also posted significantly lower earnings for the fourth quarter of 2017 compared to 2016.
In connection with Ratos's year-end procedures, the company identified impairment requirements in Diab and HL Display amounting to a combined total of approximately SEK 550m, of which approximately SEK 200m pertains to Diab and approximately SEK 350m to HL Display. The impairment amount will be charged to the Ratos Group's net profit for the fourth quarter of 2017.
The measures implemented by the companies with the aim of improving profitability are expected to take longer than originally anticipated. Both companies reported a weak earnings trend for the fourth quarter of 2017. Ratos provided SEK 130m to Diab in the fourth quarter of 2017.
EBITA in Ratos's company portfolio declined -40% during the fourth quarter of 2017 and sales fell
-10%, compared to the fourth quarter 2016. Diab's EBITA for the fourth quarter of 2017 amounted to SEK -33m (29) and HL Display's to SEK -1m (10). The company portfolio displayed an improved EBITA of 4% while sales fell -2% for the full year 2017.
"This impairment and the weak earnings of the company portfolio underline how important it is going forward that we focus on reversing the negative earnings trend in our company portfolio," says Jonas Wiström, CEO of Ratos.
After impairment, the Ratos Group's loss before tax for the fourth quarter of 2017 amounted to approximately SEK -597m (profit: 1,330) and for the full year 2017 to approximately SEK 658m
The Board of Directors proposes an unchanged dividend of SEK 2.00 per share (2.00). Earnings per share is estimated at SEK 0.72 per share (-1.79) for the full year 2017.
All other information related to the fourth quarter of 2017 will be presented in Ratos's year-end report for 2017 on 16 February 2018.
For further information, please contact:
Jonas Wiström, CEO Ratos, +46 8 700 17 98
Per-Olof Söderberg, Chairman of the Board Ratos, +46 8 700 17 98
Helene Gustafsson, Head of IR and Press, +46 8 700 17 98