Last year’s sales were 8% lower than the preceding year, while the result as a percentage of income increased from 12.6% to 13.7%. Out of a dividend of NOK 145 million, one-half will go to the Norwegian government, which has a corresponding stake in the company.
During 2011, Nammo continued to strengthen its position in the markets in which it is established. The Group’s objective is to improve its already strong market position in 2012 and continue to deliver positive results, notwithstanding a more demanding market situation.
Strong at home, important at export
Nammo operates in a global market characterized by advanced technology and considerable competitive pressures. As a result of mergers and acquisitions in recent years, Nammo has strengthened its position internationally, while also ensuring that it maintains its strong position in Scandinavia.
– The international market outside of Scandinavia has grown increasingly important to Nammo since the company was established in 1998. While the international market constituted 70% of Nammo’s sales in 2011, as always, we remain focused on maintaining a strong position in our Scandinavian domestic market, says Edgar Fossheim, President and Chief Executive Officer at Nammo.
He explains that there are two primary reasons why the company’s position in the Scandinavian domestic market is important. Firstly, national customers are demanding customers, whose positive contribution ensures that the company develops increasingly more innovative and competitive products. Secondly, our strong position in the domestic market engenders credibility in the world market, thus enabling the company to expand internationally.
– In 2011, the Scandinavian market constituted 30% of Nammo’s sales. This is always an important reference when working with both existing and new international customers, says Fossheim.
The decline in the top line is largely attributable to the weak dollar and euro
Sales amounted to NOK 3,165 million in 2011, which is 8% lower than in 2010. The decline is largely attributable to the strong Norwegian kroner in relation to the dollar and euro. The operating margin came in at 13.7% (12.6% in 2010). The operating result decreased by 1.9% to NOK 427 million (NOK 435 million in 2010), and the annual result was NOK 290 million (NOK 280 million in 2010). Nammo’s financial position remains strong, with good liquidity and an equity capital equal to 50% of total capital.