Annual report 2008 - Munters

Moisture Control Services (MCS) division
27
“During 2009, major changes will take place in how we work
within MCS. We will become even better at understanding
the needs of our selected customer segments and more
effective in how employees work in the field. The focus is on
the gross margin, and we will leave markets in which we are
not profitable to focus on growth in markets that have the
best potential. We will continue work to gradually introduce
professional key account management, improved processes
and work methods for increased productivity and the introduction
of a mobile IT system.”
Morten Andreasen, Division President
Developments during 2008
• Continued favorable order intake and sales in most
markets
• Underlying earnings on par with preceding year
• Non-recurring costs of SEK 100 M, of which SEK 55 M
in MEP 2
• Field.Link introduced in five countries during the
fourth quarter
• Ongoing efficiency measures due to the launch
of Field.Link.
The MCS division experienced favorable growth throughout the
year. Strong earnings were noted, particularly in US operations,
where the hurricane season and other weather-related events
KEY DATA 2008
resulted in good business volumes. In large parts of Europe, market
shares continued to increase. Earnings were affected, however, by
continued inflationary pressure in salaries and fuel, although some
relief was noted toward the end of the year. The trend in which
insurance companies increasingly sign framework agreements
with the major restoration companies continued. The MCS division
signed SEK M two framework agreements during the second half of SEK the M
year 3,000with insurance companies in the US and Australia. In addition, 300
the global partnership with AXA was expanded with a new contract
2,500
250
in the UK. Investments within the framework of the MEP 2 program
amounted 2,000 to SEK 55 M. Non-recurring costs were charged against 200
earnings in an amount of SEK 45 M, primarily attributable to preparations
for the phase out of certain operations, closure of operations
1,500
150
in 1,000 New Zealand and three depots in Australia and the merger of 100
the French and Belgian business units. These costs also included
preparations 500 for the phasing out of certain operations.
50
0
2003
2004
2005
2006
2007
2008
0
3 000
2 500
2 000
1 500
1 000
500
Adjusted
2008 2007 Change, % change, % 1
Order intake, SEK M 2,770 2,630 5 5
Net sales, SEK M 2,809 2,624 7 7
Operating earnings
(EBITA), SEK M
48 129 –63
Operating margin, % 1.7 4.9
Return on operating
capital, % 5.5 15.5
Capital turnover rate,
multiple 3.2 3.2
No. of employees, Dec 31 1,944 1,918 1
No. of service depots 301 321
1
Preceding year translated to this year’s exchange rates and adjusted for acquisitions.
SEK M
SEK M
3,000
300
2,500
250
2,000
200
1,500
150
1,000
100
500
50
0
0
2003 2004 2005 2006 2007 2008
Order intake Net sales Operating earnings
SEK M
SEK M
3,000
300
2,500
250
0
3000
2500
2000
1500
1000
500
0
3000
Share of consolidated
Net sales by geographic Share of consolidated 2,000
Customer segments
Share of Group employees 200
net sales
region
operating earnings
1,500
150
43% Asia 7%
Americas 14%
12%
1,000
Other 3%
Temporary
47%
100
500
climate
control 11%
50
Recon-
Europe 79%
struction 18%
0
Fire damage
0
2003 restoration 2004 22% 2005
Water damage
restoration 46%
2006 2007 2008
2500
2000
1500
1000
500
0
Munters Annual Report 2008