A new CEO, a stronger focus on the core business. The consistent focus on their traditional strengths seems to bear fruit at Orio AB. For the 3. Quarter 2019 reports the company's return to the black, after a loss in the prior-year quarter. The development of the markets themselves remains uneven, and a region crashes in the 3. Quarter off.
After a slight loss in the same quarter last year reports Nyköping an operating result of 200.000 Swedish kroner. Gross profit was 2%, after a fall of 1% in the same period last year. Turnover fell by 14% to 128 million kroner, and a look at the development of each region is of interest.
The Scandinavian markets and North America report a decline of 6%. Both regions had previously been severely shaken by massive sales losses, they are now stabilizing. Especially in their home country Orio AB seeks a close alliance with the customers, which begins to pay off. There is an online shop for Saab parts, the partner network is well staffed, and via an app, the Saab driver can manage his vehicles and contact the Saab Helpdesk directly if there are any questions.
Germany and the UK are down sharply
On the other hand, two other markets performed better than average. In the UK, where consumer confidence has been fairly weak for some time due to the Brexit debacle, sales plunged by 13%. At the same time, the model market Germany followed, which so far seemed immune to crises and setbacks. Here, too, sales fell by 13%. While in the UK the reasons are obvious, the problems in Germany are different. Larger workshops have built up alternative procurement channels over the years and are increasingly using them. Sales that were automatically posted to Orio a few years ago are now missing.
Quarterly reports reflect the past. The focus of Orio AB on logistics and the Saab niche is interesting and challenging. If you ask for the future, you should look to the British Isles. For decades companies have used the legacy of vanished brands. They do this well and successfully. From the smallest screw to the body shell, there is everything, even if the vehicle is 50 years old. A template for the Orio AB, because while Saab disappears from everyday life continues to grow, the market for classics from Göta Älv.
What the Orio AB communicated about the theme of reproduction during the festival in Trollhättan sounds very positive for the Saabeigner. Gaps should be closed again, interesting initiatives start for the classics. The traditional Saab location in Nyköping seems to have misunderstood. This is good for those who love their Saab and would like to be mobile even longer with their Swedish cultural heritage. A little patience, until the alignment in the quarterly reports reflected, you have to have, of course. From the first idea to the product that goes through the shop counter, it takes months, sometimes even years.