Sales in Q3 in local currency and excluding structure was relatively unchanged in Europe and Latin America, increased by 3% in North America, 8% in Asia and 7% in Middle East and Africa, while sales in the first nine months in local currency and excluding structure increased by 2% in Europe, 3% in North America, 1% in Latin America, 11% in Asia and 14% in Middle East and Africa.
Manufacturing in the first nine months was slightly higher compared to last year.
”Demand was slightly lower than expected during the quarter, particularly in Europe and within our automotive business,” said Tom Johnstone, president and CEO. “As a result manufacturing was adjusted lower than planned at the start of the quarter impacting our results but ensuring we also reduced inventory in fixed currency. Cash flow, at over SEK 1.4 billion, was strong and we continue to focus on reducing net working capital.
Unchanged demand
“Looking forward we continue to operate in an uncertain business environment which may even have worsened slightly in Europe in the last months. As such we expect demand for our products in the fourth quarter to be relatively unchanged both sequentially and year on year and will run manufacturing a little lower than sales to further reduce inventories.
Johnstone plans to step down as president and CEO at the end of 2014, to be replaced by Höganäs’ Alrik Danielson.