Swedish Morphic loss widens to SEK458m H1 '09 on write-downs

Thu. August 27, 2009; Posted: 04:39 PM

Aug 27, 2009 (CORPORATE IT UPDATE via COMTEX) -- MPHCF | Quote | Chart | News | PowerRating -- 27 August 2009 - Swedish renewable energy group Morphic Technologies AB (STO: MORP B) said today its net loss widened to SEK458m in January-June 2009 from SEK71.2m a year earlier, due to SEK318.4m write-downs.

The write-downs were related to both core operations and subsidiaries in the process of being sold.

A total SEK135m of the write-downs were related to Morphic's Norwegian wind power subsidiary Scanwind AS, which was sold to the GE Energy unit of US major General Electric (NYSE: GE) at a loss earlier this month.

Additionally, the value of Morphic's Swedish subsidiary Dynawind AB has been written down by SEK75.5m in connection with an ongoing sales process.

Morphic's revenue rose 28% on the year to SEK256.3m in the first half of 2009. The positive development was attributed to high activity in the group's unit Wind, which was partly offset by halved revenue in the Fuel Cells unit.

However, the operating loss widened to SEK463.4m from SEK77.6m and loss per share widened to SEK1.29 from SEK0.41.

Morphic said that it has continued its work on streamlining the operations.

In addition to Scanwind, the group sold its non-core operation Dynamis AB, which develops and sells systems for materials handling and automation, in April. The transaction had a marginal effect on Morphic's financial results.

In May, the group raised SEK32.4m in a private placement.

Morphic is currently implementing cost-reduction measures in the Fuel Cells unit and in the group's headquarters, CEO Martin Valfridsson said.

(EUR1 = SEK10.2)

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