February 15, 2017 / 6:40 AM / a year ago

BRIEF-Mekonomen Q4 EBIT lower than expected

Feb 15 (Reuters) - Mekonomen Ab

* Q4 revenue increased 4 per cent to sek 1,508 m (1,447)

* Q4 ebit amounted to sek 74 m (109) and ebit margin was 5 per cent (8

* Says EBIT has been negatively affected by non-recurring effects totalling SEK 31 M (21), of which SEK 6 M (0) are related to recall of Volvo cars in which defective driving belts had been installed and SEK 25 M (0) are related to divestment of the Danish business.

* Board of directors proposes a dividend of sek 7.00 (7.00)

* Reuters poll: mekonomen q4 revenues were seen at sek 1,496 million, ebit at sek 92 million, dividend at sek 7.00 per share

* Says in quarter we have seen a continued pressure on gross margin, especially in norway, mainly driven by increased share of our sales to affiliated workshops and large customers, as well as price competition in norway. We expect this trend will continue going forward

* Says provided that scrapping or export of cars do not increase, we see potential for an increasing overall market in 2017, mainly driven by a strong sales of new cars in recent years and a growing car fleet in norway and sweden

* Says compared to last year we have not seen same strong chill effect this january, with some negative effect on sales of cold related products

* Says we will expand previously communicated cost and efficiency program from sek 25 m to sek 45 m on an annual basis, with full effect from q3 2017 Source text for Eikon: Further company coverage: (Reporting by Rebecka Roos)

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