Turnover in the inventory-based business in Europe for 1Q was approximately 30% below last year’s level in that both the difficult market conditions and unusually long winter impacted on market activity.
The overseas markets in the Global Sales business area maintained last year’s turnover level in that it totalled DKK 162 million ($28 million).
EBIT was minus DKK 15 million ($2.6 million) for the first three months of the year against DKK 3 million ($518,510) for the same period last year, which was positively affected by non-recurring income of DKK 4 million ($691,347). The Group’s EBIT margin for the period was minus 3% against 0.4 % last year. The negative trend in EBIT is primarily due to the lower turnover and the lower gross margin.
Net financials in 1Q fell from DKK 9 million ($1.5 million) last year to DKK 8 million ($1.4 million) this year. The fall is due to decreasing interest expenses as a consequence of the significant reduction in the Group’s net interest bearing debt.
For the first three months of the year, the Group’s result after tax (continuing operations) was a loss of DKK 22 million ($3.8 million) against a loss of DKK 9 million ($1.6 million) for the corresponding period last year.
The Group’s discontinued operations generated a profit of DKK 1 million ($172,836) against a loss for the same period last year of DKK 1 million ($172,836).
“In 1Q we experienced a continuing lower level of activity in Europe combined with an unusually long winter. With the prospect of both difficult and unpredictable market conditions, we’re continuing to focus on strict cost and balance sheet control,” says CEO of DLH, Kent Arentoft.
DLH is a Danish owned group quoted on the Copenhagen Stock Exchange and since 1908 trading in timber and wood products all over the world.