Orio AB – Increased authorization creates greater flexibility for the future
Orio AB wants to clarify the information that has attracted attention in the Swedish media today and clarify the underlying facts that prompted the attention.
As part of optimizing the value development in the Orio Group, the state as owner has applied to the Swedish parliament for an extended authorization for developing its two business areas Orio Parts, with Saab Original spare parts distribution, and Orio Logistics, logistics services, as well as the Group’s logistics and distribution property in Nyköping. The purpose of the application is to expand the state’s action alternatives and create flexibility in how the value of the state’s ownership in Orio AB can be optimized.
– “In order to expand the state’s alternative course of action and thus the state’s opportunities to obtain as much value as possible for the business, the government has sought a broader mandate in Spring Budget Amendment 2021. In practice, this increases the opportunities for the board and, in the long run, the state to be able to obtain as high a value as possible for the business”, says Charlotte Hansson, Chairman of the Board of Orio AB.
In the Spring Budget Amendment 2021 to the Parliament on increased authorization for increased flexibility and optimized value creation of ownership in Orio AB, the wording “wind up through liquidation” is used. The formulation is unfortunate. It is included in the entirety of an extended authorization, despite the fact that the underlying reason for the extended authorization is the opposite, i.e. to enable an optimization of value development and increase the owner’s flexibility in the management of Orio AB.
The hope with this letter is to clarify the underlying facts, regarding the unfortunate dissemination of information that has taken place in the media.
The origin of the dissemination of information is thus the Spring Budget Amendment 2021, where the government applies for an extended authorization to create increased flexibility in its ownership of Orio AB to ensure an optimized value development of the Group.
Orio AB looks forward to a continued and future close and good collaboration with our existing customers, suppliers and partners and with potential new customers, suppliers and partners within the Orio Parts business areas with Saab Original spare parts, Orio Logistics and within the property development project Nyköping Logistics Park.
With confidence in continued good cooperation,
Orio AB implements job reduction from April 1st
Dear customer, supplier or partner,
You make our business possible and without our cooperation we would not have succeeded in what we have done. As part of ensuring our future cooperation in the short and long term, in the current Corona situation, we have decided to introduce job reduction for our employees within Orio AB.
The main reason for the introduction is that we are gradually becoming more and more affected by the external situation, the general impact on society of the spread of infection, the restrictions of countries and governments, and now increasingly the closures of businesses and companies where risk mitigation and cost minimization are the focus.
The job reduction schedule will take effect from April 1 and will apply until further notice. We will, of course, adapt over time to the demand for our products and services to ensure that we meet the demands and expectations that you and others impose on us as a company.
We will ensure that you, as our customers, suppliers or partners, will not be affected to any great extent. As before, you should be able to trust our deliveries of products and services, our customer service and willingness to cooperate in the future.
If, contrary to presumption, you experience a negative impact on our relationship with us, please contact your Orio contact person and we will try to rectify any shortcomings.
With the promise of continued good cooperation,
Orio improves operating profit in the last quarter
Orio AB reports an operating profit of MSEK -1 (-41) for the fourth quarter of 2019. Net sales amounted to MSEK 113 (136), a decrease by 17 percent compared with the corresponding quarter last year.
– For the period January to December 2019, net sales amounted to MSEK 504 (603), a decrease by 16 percent compared to the corresponding period last year. Operating profit for the period amounted to MSEK -10 (-40).
– Sales for Orio Parts continue to be slightly better than the trend reflected in the number of Saab cars in use, despite a slowdown in December. The Parts business area continues to strengthen its gross profit margin compared to the previous year thanks to good cost control and balanced price levels in the various markets, says Gustaf Ljunggren, CEO of Orio AB.
– Despite lower net sales and lower gross margin during the fourth quarter compared to the previous year, the business area Orio Logistics strengthened its positions. A positive development of the existing customer portfolio and four new contracted customers meant that the business area exceeded expectations in the quarter. The new contracted customers also create good conditions for an increased sales rate into the new year 2020.
– Cash flow from operations for the quarter was MSEK 4 (9) and the equity ratio per 31 December 2019 was 76 (72) percent.
For further information, please contact Gustaf Ljunggren, CEO, tel +46 70 973 73 66.
Orio is a global spare parts and logistics company with a strong innovative spirit. Our roots in the automotive industry, aftermarket and spare parts go back all the way to 1947. Since 2018, Orio is divided into two business areas, Parts and Logistics. Parts is the world’s only supplier of Saab Original parts, with sales in 53 countries. Logistics offers logistical services in everything related to storage, distribution, export/import, transport, processing and handling of goods.
Orio AB is since 2012 wholly owned by the Swedish government. The head office is located in Nyköping, together with logistics and distribution centers. The company also has an office in Trollhättan and operations in the USA, Great Britain, Germany, Switzerland and Finland.