The financial position of the Group remained strong during the second quarter.

The interest-bearing net debt amounted to EUR -11 (55) million at the end of July 2008. The effective net debt including as debt the sold receivables of EUR 184 (107) million equalled EUR 173 (162) million.

Cash and liquid assets amounted to EUR 91 (13) million. The available limit in the revolving credit facilities with core banks amounted to EUR 200 (200) million, and the unused limit in the securitisation programmes was EUR 68 (136) million.

Net financial items during the second quarter amounted to EUR -3.0 (-2.1) million. The year-to-date net financial items were EUR -5.4 (-3.9) million. The increase is explained partly by a higher general interest rate level and partly by a higher amount of debt. 

Net gearing decreased to -3 (13) % compared with the end of Q2 2007, and the equity ratio decreased to 24 (33) %.

Free cash flow and net working capital

In the second quarter, the operative cash flow before changes in net working capital and investments amounted to EUR 38 (40) million. The decrease in net working capital produced a cash flow of EUR 186 (37) million. The increase in the amount of receivables sold impacted the cash flow positively during the second quarter. Net investments amounted to EUR -7 (-7) million. The free cash flow increased to EUR 217 (70) million.

During the first half of the financial year the operative cash flow before changes in net working capital and investments was EUR 70 (70) million and remained on the same level compared to the last year’s corresponding period. Changes in net working capital resulted in a cash flow of EUR 38 (-120) million. The net cash flow effect of investments was EUR -12 (-8) million. On a year-to-date basis the free cash flow increased to EUR 96 (-58) million.