Clas Ohlson releases fiscal year results

Sweden-based hardware store chain Clas Ohlson (OMX: CLAS B) reported fiscal year results for 1 May 2011 – 30 April 2012 period yesterday. Fourth quarter sales were up b y 9% to 1.27 billion SEK and Gross margin remained above 40% while after tax profit went from zero to 7 million. Full-year numbers were 6.26 billion and 400 million respectively. The company is hiking its dividend to 4.25 per share from 3.75 SEK a year ago on the heels of a strong operating cash flow. The company has been able to capture market share at retail sector and plans to grow further with recent e-commerce platform launches in Sweden and Norway highlighting those ambitions.

Handels strike would affect many listed companies

Swedish Commercial Employees' Union Handels has issued a strike warning. It would start after Easter celebrations on April 13th. While strikes are rare in Sweden, Handels has used the threat on occasion in recent years.

Negotiations with employer’s organization Svensk Handel broke down several days ago. Naturally Svensk Handel is opposed of such a move and thinks it would be very damaging to the Swedish economy. The union demands 860 SEK wage increase to retail sector employees plus 100 SEK extra to narrow the gap in between male-female earnings.

The warning covers warehouses and stores with some 5600 employees and 65 workplaces. Since certain big wholesalers are involved, it could also have a trickle down effect on other smaller companies. Among listed companies affected would be

Clas Ohlson (OMX: CLAS B)
Lindex fashion chain, a subsidiary of Finnish Stockmann (OMX: STCAS, STCBV)
Hemköpskedjan AB and WiLLY:S AB, subsidiaries of food retailer Axfood AB (OMX: AXFO)

Building, contracting and industrial sectors retailer Swedol AB (STO: SWOL B)
Steel trading and services firm BE Group Sverige (STO: BEGR)
Industrial consumables and components provicer B&B TOOLS (STO: BBTO B)

H&M Hennes & Mauritz (OMX: HM B)
Large retailer ICA AB, which is 40% owned by Hakon Invest AB (STO: HAKN)
KappAhl (STO: KAHL)
Car spare-parts chain Mekonomen (STO: MEKO)

Other week 49 2011 news from Nordic companies

Here are some additional newsworthy events in brief:

Financial Times is reporting that Nokia is coaxing interest of potential buyers to divest its luxury phone brand Vertu. Some private equity firms seem interested and the sales price should be several hundred million Euros.

Eu/Norway fish talks for 2012 North Sea fisheries resulted in increases for herring, haddock and whiting quotas (with North Sea herring quota more than doubled to 405,000 tons), with cod and saithe quotas down a notch. Further talks will be made for mackerel total allowed catch as a solution in the mackerel war with Faroe Islands and Iceland is sought after.

Christmas demand has raised Norwegian salmon spot prices some 20% within a few weeks. While still far away from 45 NOK per kilo levels of this summer, this breaks a lengthy trend straight down and farmed salmon companies have responded positively.

Vestas turbine in Ayrshire wind farm, Scotland caught fire in hurricane Bawbag.

Maersk Drilling received LOA from Det Norske Oljeselskab (OSE: DETNOR) to Draupne license in the North Sea for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014. The total value of the three year contract is over 400 million USD.

Outotec has acquires furnace refractory demolition business Kiln Services Australia. The company envisions doubling Kiln’s annual sales over the next three years.

Højgaard Industri, a part of Højgaard Holding (CPH: HOEJ B) won a new management contract‏ with Banedanmark for the production of concrete sleepers at the Fredericia facility. The previous contract with between the companies was coming to a close and Højgaard Industri won out in the contract award procedure.

There have been wild swings in Frontline (OSE: FRO) stock after its creative restructuring plan was made public this week.

Kone Corporation will supply elevators and escalators to Lishui Wandi Plaza. The large eight building complex in the city of Lishui in Zhejiang province should be completed in 2013.

Clas Ohlson (STO: CLAS B) missed expectations for 1.5.2011-31.10.2011 period.

TTS Group ASA won two contracts from Hyundai Mipo Dockyard co. Ltd worth around 117,5 million NOK in total.

Purchase-to-pay and Financial Management solutions software provider. Basware Corporation lowers 2011 estimates.

Cevian keeps buying into Tieto ((OMXH: TIE1V, OMXS: TIEN).

Neste Oil is selling its 50% portion of iso-octane, a gasoline component produced from Butane, plant in Edmonton, Canada to Keyera Corp for 99 million USD.

Clas Ohlson pops on Q2 report

Hardware, home and leisure chain Clas Ohlson AB (OMX: CLAS B) provided a better than expected interim report. Sales for May-July period were 1.387 billion SEK, which was an increase of 5 percent in local currencies. Comparable store sales were down by 4%. Operating profit grew to 120 million and profit after tax eked up slightly to 85 million.

The company also announced August sales and they were stronger than expected: up by 10% to 527 million Swedish Kronor. The growth plan continues and just yesterday Clas Ohlson announced they have signed a contract to open up a new store in Vantaa, Finland.

The aim is to continue to strengthen the company and to go to wider Europe in full force after that. The stock has been under pressure as of late but broke out with a gain of 23% today. The full report is available here.

Some June sales numbers

Retail-clothing giant H&M group’s (OMX: HM B) total sales in June increased by 5 percent in local currencies compared to June 2010. Sales were down in comparable units by 4 percent. The numbers were a minor disappointment to investors and H&M closed slightly in the red.

Hardware, home and leisure chain Clas Ohlson AB (OMX: CLAS B) sales increased 5% in local currencies and 8% overall in June compared to June 2010. The firm has added 22 stores since last year and now has 143 retail stores. The stock backed 1,5% on after the news Friday.