Investor profits slump

Investor, Northern Europe's biggest industrial holding company, announced on Thursday a 35 percent drop in net profits in 2006 despite a 19 percent rise in the value of its share portfolio.

Net profit totalled 28.5 billion kronor (3.13 billion euros, 4.05 billion dollars), down from 43.8 billion in 2005, the Swedish group said in a statement.

In the fourth quarter alone, net profit fell by 14 percent to 10.5 billion kronor from the same period a year earlier.

Investor said the value of its share holdings grew by 19 percent in 2006 owing to the strong economic cycle and positive restructurings undertaken by the companies in its portfolio.

As of 31 December 2006, net asset value amounted to 159.3 billion kronor, compared to 133.9 billion at the end of 2005.

Investor, which holds stakes in more than 130 companies worldwide, saw its net asset value per share climb from 175 kronor to 207 kronor at the end of December.

Among Investor’s main holdings are Swiss-Swedish engineering group ABB, Anglo-Swedish pharmaceutical group Astra Zeneca, Swedish bank SEB, industrial equipment manufacturer Atlas Copco, and the world leader in telecoms networks, Ericsson.

Investor, which is controlled by the influential Wallenberg family, is also one of the main shareholders in Swedish truckmaker Scania.

In its statement on Thursday, Investor reiterated its rejection of German industrial group MAN’s hostile bid for Scania, saying it only saw potential for a friendly collaboration between the two truckmakers.


Sweden Investor group posts sharp profit drop

Swedish investment giant Investor on Wednesday said its first-quarter profits slumped by a quarter, underlining Sweden's vulnerability to international instability.

Sweden Investor group posts sharp profit drop
File photo: Simon Cunningham/Flickr
From January to March 2014 the group – one of the largest investors in Nordic-based multinationals including Saab, Atlas Copco and Ericsson —
reported a 25 percent drop in profits from a year earlier to 12.14 billion kronor ($1.85 billion).
However the group's net asset value, at 227,584 billion kronor grew by 5.6 percent compared to the previous quarter.
Founded over a century ago by the Wallenberg family, the Investor group is often seen as a barometer for the economic health of Sweden, given the large number of indigenous companies which are partly owned by the group.
Among its main investments are engineering company Atlas Copco (16.8 percent share), SEB bank (20.8 percent), the Swiss-Swedish engineering and
robotics firm ABB (8.1 percent) and the white goods group Electrolux (15.5 percent).
Group president Börje Ekholm said in a statement that current geopolitical uncertainty "will increase the uncertainty for our export companies".
The groups shares were down 0.7 percent in late afternoon trading on the Stockholm Stock Exchange in an overall market down 1.2 percent.