Latour's industrial profit rises 30% in third quarter on higher sales volume

what happened

Swedish investment and industrial holding company Latour reported that its third-quarter industrial sales rose 7% year on year, according to Reuters, which based the report on company and LSEG data. Adjusted operating profit in the industrial operations climbed 30%, and the margin widened to 16.9%.

Latour attributed the gain to higher sales volumes, efficiency measures and tight cost control. Its listed investment portfolio lost 5.2% over nine months, trailing the benchmark index. The order backlog stood at SEK 8,243 million, which the company said should support revenue growth in the coming quarters.

The company described steady demand in most operations, including refurbishment, energy upgrades and infrastructure. Weakness in European residential construction weighed on some segments, and Latour warned that macroeconomic and geopolitical uncertainty could affect future results.

why it matters

The report suggests Latour's industrial business is regaining profitability, and the order backlog gives it revenue visibility. Still, weak European housing and a lower value for its listed holdings temper the picture for investors who watch the group as a gauge of Swedish industrial demand.

market impact

Latour shares: strong profit and backlog support the stock, while caution on construction limits the upside

• ↔Latour shares mixed — strong profit and backlog offset weakness in European residential construction

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