Operating revenues for the 3rd quarter 2008 amounted to NOK 655 million, down 6.5% compared to the 3rd quarter 2007. EBIT for the quarter was NOK 71 million, down 2.7%. The EBITDA margin was 12.3% and the EBIT margin was 10.8%.
Despite a demanding market situation, the Group has achieved good results and atisfactory margins in this quarter as well. Operations and production efficiency are good in both the Norwegian and Swedish operations. We expect it is taking longer than originally predicted to re-establish a more stable demand for new homes, and that the market will continue to be unstable and demanding in 2009. We are closely monitoring this situation to ensure that we are ready to adapt production capacity to the market development, comments CEO Lars Nilsen in BWG Homes.
To meet the financial turmoil and a reduced order intake, the Group has - as planned - implemented a number of measures. In the 1st quarter 2009, the staffing level will be approx. 920 employees, a reduction of approx. 450 employees (33%) from January 2008.
No new infrastructure and property investments, focused sales in projects under development, and decreasing money market interest rates and loan interest rates will have an impact in 2009, Lars Nilsen comments further.
House manufacturers in Norway and Sweden are expected to have considerably fewer new house starts in 2009 than in 2008. This will gradually result in strong pent-up demand for houses, and consequently an increased demand for new houses.