The financial position of the Group strengthened further during the third quarter.
The interest-bearing net debt amounted to EUR –18 (81) million at the end of October 2009. The effective net debt including as debt the sold receivables of EUR 167 (196) million equalled EUR 149 (277) million.
Cash and liquid assets amounted to EUR 126 (20) million. The available limit in the revolving credit facilities with core banks amounted to EUR 120 (200) million, and the unused limit in the securitisation programmes was EUR 74 (47) million.
Net financial items during the third quarter amounted to EUR –1.9 (–3.7) million. The year-to-date net financial items were EUR –8.6 (–9.1) million. The decrease in interest expenses is explained by lower interest rates, whereas other financing expenses increased compared with the corresponding period last year.
Net gearing decreased to –6 (35)% compared with the end of Q3 2008, and the equity ratio increased to 23 (18)%.
Free cash flow and net working capital
In the third quarter, the operative cash flow before changes in net working capital and investments amounted to EUR 35 (21) million. The decrease in net working capital produced a cash flow of EUR 77 (–3) million, as the increase in the amount of receivables sold impacted the cash flow positively during the third quarter. Cash flow from net investments amounted to EUR –7 (–20) million. The free cash flow increased to EUR 106 (–1) million.
The year-to-date operative cash flow before changes in net working capital and investments was EUR 105 (92) million. Changes in net working capital resulted in a cash flow of EUR –41 (36) million. The net cash flow effect of investments was
EUR –27 (–32) million. On a year-to-date basis the free cash flow decreased to EUR 38 (95) million.
