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The trend of stabilising order intake continued during the fourth quarter. Even though order intake was 7% lower than in the same quarter of 2008, we saw a clear improvement over the preceding quarters, which indicates an improved market situation. During the fourth quarter, net sales and order intake were at roughly the same level.  

Despite fierce competition in the market, the gross margin was higher during the fourth quarter compared with the preceding quarter as well as the same quarter in 2008. The stability of the Group's gross margin over the years, including 2009, points to the strength of the product offering and adeptness of our companies.  

Distinct and clear personal responsibility among the management teams of the Indutrade companies is a key factor behind our performance in 2009. Our decentralised business model enables the companies to uphold their margins and quickly adapt their operations to changes in demand. 

The EBITA margin for the fourth quarter was 9.3%. The lower margin compared with the third quarter follows the normal seasonal pattern. The EBITA margin for the full year was 9.5%. Although 2009 was characterised by a deep recession in most of our markets, once again we exceeded our target of achieving an EBITA margin of at least 8% over a business cycle.  

As a result of Indutrade’s favourable profit growth, combined with an increased share of manufacturing companies, the Board has decided to raise the target EBITA margin to a minimum of 10% (8) over a business cycle. 

During the fourth quarter we carried out our first acquisition in Asia – Key Valves Technology in South Korea. The company is an excellent complement to our Dutch subsidiary HP Valves, since it broadens the product offering to international customers in power generation.  

We have continued to acquire companies into the start of 2010. Thus far we have acquired three companies with combined annual sales of SEK 190 million. One of the acquired companies is in Poland, AxMediTec Sp. z.o.o., entailing that the Group now has companies in 17 countries.  

As a result of the generally more stable market situation, acquisition opportunities have increased, and we believe that we have good opportunities to carry out additional acquisitions in the coming months.  

Johnny Alvarsson,
President and CEO