Investment group Investor AB reports drop in net asset value
Market turmoil impacted the net asset value of Investor AB, the investment company with key stakes in leading Swedish blue-chip companies, the group said Tuesday.
For the third quarter 2008, the group reported a loss in its net asset value of 8.8 billion kronor (1.2 billion dollars), compared to a loss of 7.8 billion kronor for the corresponding business period in 2007.
At the end of September the net asset value was 130 billion kronor compared to 155 billion kronor at the end of 2007, reported dpa.
Chief Executive Borje Ekholm described the third quarter 2008 as "an extreme financial turmoil," adding that it "further escalated into the last quarter of the year."
However, Investor performed better than the Stockholm stock market in the third quarter shedding 6 per cent compared to the stock market's 12 per cent drop in its index, the group said.
Engineering group ABB impacted Investor's result negatively with a loss of 8.5 billion kronor, while banking group SEB generated a loss of 7.5 billion kronor.
The sale of heavy-vehicle maker Scania to Volkswagen was completed during the third quarter, and generated a profit of 3.3 billion kronor.
Investor also has stakes in blue-chip groups like telecommunications equipment provider Ericsson, household appliance maker Electrolux, and aviation and military technology concern Saab.
In his outlook, Ekholm welcomed the "coordinated initiatives between countries" to "restore confidence in the credit market" but said it would take time for them to take effect.
Investor AB has close ties with Sweden's wealthy and influential Wallenberg family.