Algol maintains its result in 2009, a year of deep recession

The Algol Group managed to maintain the level of its total operating result in 2009, a year of severe challenges in which the deep recession caused by the international economic crisis rapidly spread to all our market areas. The solidity of the Algol Group remained strong. However, sales figures fell noticeably compared with the previous year. The business environment was typified by a steep decline in the volumes of industrial output, low utilisation rates in production capacity, and a freeze on investments. Tighter financing and cost-cutting measures also reduced demand in the public sector.

Net sales for the Algol Group amounted to EUR 168.0 million, total sales to EUR 202.7 million and the result before adjustments and taxes to EUR 1.9 million. The Group´s solidity was over 56 percent.

Algol Chemicals achieved a good level of profitability in its overall operations despite the difficulties in its market areas. This was due in part to the strict control of costs and inventories. The company centralised its Finnish warehousing activities to Espoo and Turku. Algol Chemicals, which already operates in the Nordic and Baltic markets, Russia and Ukraine, was preparing at the end of the year to establish a new subsidiary in Belarus. This will expand its operating area to include ten countries.

Algol Technics recorded a two-sided year. Sales and profits were boosted for a long time by the strong order book that carried over from the record year in 2008. The decline in industrial investments caused by the recession began to have a rapid effect in the autumn, especially on equipment sales and project deliveries, and the result for year ended up at the same level as two years previously. Maintenance and reliability services were very successful throughout the year and provided good support for the overall business.

Algol Pharma continued to enhance the efficiency of its operations by implementing new strategies, including discontinuing its own pharmaceutical warehousing operations. The company, which is active in seven countries in the Nordic and Baltic markets, managed to achieve a significant improvement to its result despite the strong price pressures that are typical within the branch and the effects of the recession, especially in the demand from the municipal sector. The company is continuing to focus on developing its product assortment and pharmaceutical services.

Despite the first signs of a brightening in the economic trend at the start of 2010, the outlook continues to be unstable and the trend difficult to interpret. Due to the depth and broadness of the recession, it can be expected that the recovery will be relatively slow. The Algol Group will continue to hone its readiness and develop its service concepts in order to ensure a strong position for coping with challenging economic situations.

Key Figures

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