Interim financial report Q3 2008 (21 October 2008)
Estimates of the future outlook for the Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (10/2008-9/2009) in comparison with the 12 months preceding the reporting period (10/2007-9/2008).
The development of the Group's operating activities is affected by the economic outlook in its different market areas and especially by the growth rate of private consumption. During the past months, the economic outlook has continued to weaken as a result of the aggravated problems in the financial market. Private consumer demand is expected to decelerate in the Nordic and the Baltic countries owing to lower levels of consumer confidence and higher levels of saving. It is not possible to estimate the effects of a possible credit depression on the behaviour of businesses and consumers.
Market growth is expected to slow down especially in the construction sector, the home and speciality goods trade and the car and machinery trade.
The increasing uncertainty about the economic outlook makes any statement about the Group's future outlook significantly more difficult. In consequence of the weakening economic development, the Kesko Group's net sales and operating profit excluding non-recurring items from continuing operations is expected to remain at a lower level compared with the net sales and operating profit excluding non-recurring items of the preceding 12 months. The Group's liquidity and solvency are expected to remain strong.