PRESS RELEASES

EXTRAORDINARY FACTORS AFFECT THE DEVELOPMENT IN PARTS OF THE DUROC GROUP

Regulatory Information

The first months of the first quarter have been characterized by extraordinary events that can almost be described as a “perfect storm”. It is above all the units with heavy manufacturing such as IFG, Cotting and Cresco that have been affected by a significantly worse result than expected and it is highly unlikely that the group will reach the same level of results as the strong comparison quarter 21/22. The quarter has so far been marked by a rapid and sharp drop in prices for input goods, which has caused customers to hold back on their purchases temporarly while waiting for the price to stabilize at a lower level. This primarily applies to IFG. The drop in prices has also resulted in significant write-downs of inventory, which negatively affects earnings, but not cash flow. Another factor that has pressured the result is exceptionally strong increases in prices of electricity and gas, which have not yet been compensated with price increases to customers…

SEPTEMBER 15, 2022