SEB Financial Officers' Index: Volume and price...

Optimism is increasing among Swedish financial officers. A majority is now
expecting higher volumes to contribute to improved profitability in 2010. At the
same time the focus on cost cutting has been reduced. The potential for price
increases has improved and expectations that profits will rise this year are
high. The effects of the economic downturn have subsided with a clear majority
of officers now believing their companies' performance has bottomed.

SEB's Financial Officers' survey, addressed to around 70 of Sweden's largest
companies, shows respondents becoming increasingly positive towards the current
situation. SEB's Financial Officers' Index for February published today stands
at 60, up from 59 in November.

The  Financial Officers' survey suggests respondents are more positive regarding
the current business climate.

"More than half of financial officers expect volume increases to support higher
profitability this year. Profitability improvements should be further supported
by cost cutting initiatives executed in 2009. Indeed, some 65 percent of
respondents expect improved profitability in 2010", says Ebba Lindahl, head of
Credit Research at SEB and co-author of the report with Disa Hammar.

Companies' financial positions have improved further.

"A total of 74 percent of financial officers now regard their company's
financial position as either favorable or very favorable, compared to a record
low of 50 percent in February last year. Willingness to lend amongst banks has
also improved significantly and companies are increasingly interested in making
strategic investments", says Hammar.

The survey shows that price hikes are in the pipeline.

"Financial  officers regard the price outlook  for their companies' own products
more  favorably than in  recent surveys, which  should positively impact results
this  year. Some 64 percent  of respondents believe  they will be  able to raise
prices  in the next six months, while 27 percent expect prices to remain largely
unchanged", says Lindahl.

This  is the sixteenth publication of  SEB's Financial Officers' Index, a unique
quarterly  survey  whose  purpose  is  to  reflect  changes  of sentiment in the
financial environment and facilitate the understanding of economic and financial
trends.  The survey  comprises a  total of  15 questions covering  areas such as
business  climate, strategic  investments, employment,  views on  currencies and
interest  rates,  financial  strength,  and  lending attitudes amongst financial
institutions.    The    full    report    (in    Swedish)    is   available   at
www.sebgroup.com\press.

__________________________________________________________________________

For further information, please contact:

Ebba Lindahl, Trading Strategy, SEB, tel. [phone]
Elisabeth Lennhede, Press Officer, tel. [phone]



[HUG#1387605]





    Press release (PDF) : 

http://hugin.info/1208/R/1387605/345926.pdf