Measurement technology company Hexagon has issued a profit warning ahead of the release of its Q2 interim report on 26 July. According to a press release this morning, Hexagon has seen weaker-than-expected growth in China in June.
Preliminary assessments indicate sales of approximately EUR 975 million in Q2, corresponding to organic growth of -1 per cent for the group.
Hexagon has booked a one-off charge of EUR 44 million in Q2 to reduce its global workforce by approximately 700 employees.
Håkan Samuelsson, CEO of the Volvo Car Group, is positive to a Liberal proposal to set up a commission to promote the electrification of the road network but is unimpressed by lawmakers’ fixation on climate goals, which has characterised the political debate in recent years.
“In the United States, Elon Musk (Tesla’s founder) has produced the largest investment in electric cars. It’s not based on climate goals but on business interests,” he says.
In Sweden, the CEO is pinning his hopes on green diesel from the forests, believing the country could be a pioneer in this field.
Digital Development Minister Anders Ygeman (S) is mulling the possibility of fining operators whose mobile networks suffer outages. The minister also considers there is reason to question whether the technical requirements placed on operators are adequate, saying that “society needs to make higher demands of the robustness of the network” and that mobile customers should receive compensation for outages.
Swedish electricity capacity margins will fall with the closure of a number of nuclear reactors in the next few years, finds Svenska Kraftnät, which is responsible for the national grid.
In a report presented to the government, the authority says the country’s peak power deficit will increase two-fold in a normal winter. Sweden already has a deficit of 1,000 MW in winter.
The authority has previously called on the government, agencies and the power industry to take quick measures to reverse the negative trend.
Investment in the police and judiciary, healthcare and education must go before tax cuts, say a majority of Swedish business executives in a Dagens Industri survey. Tax rates are irrelevant if law and order systems do not function properly, comments Gunnar Mårdh, head of the Swedish Federation of Business Owners (Företagarna).
Finance Minister Magdalena Andersson considers the findings important ahead of negotiations on a new tax reform. She says the wishes of the executives are in line with those of the government. “We need to strengthen the police and the judiciary. And the billions that will need to be spent on elderly care, healthcare and education are one of the main areas we will be working on in this term of office.”
A preliminary estimate for H&M’s sales in June so far indicates a lift of 12 per cent. According to CEO and principle owner Karl-Johan Persson, the increase is a result of good conditions, such as the weather, and a popular clothing collection in-store.
Online sales increased by 20 per cent in local currency during the second quarter, ending in May. H&M is also growing more than the rest of the market in many countries, including China, the UK and the US, says Persson. He called it a “challenging” quarter in Sweden but growth was still 5 per cent
Furniture giant Ikea believes that solar energy is facing explosive development both globally and in Sweden. It has
now selected rapid growth company Svea Solar as its partner as it begins selling solar cells on the Swedish market
after the summer.
“The solar market is marginal in Sweden despite the conditions being just as good as in Germany, which is the
leading solar country. However, by 2030 solar could represent at least 10 per cent of Sweden’s energy mix,
compared to 0.3 per cent today,” says Jonas Carlehed, sustainability director at the Ikea group in Sweden.
However, the company believes politicians need to introduce more reforms to “capture the enormous boom”.
Once again Metro employees are not receiving a salary. The newspaper has been in financial crisis for several months and owner Christen Ager-Hanssen is now saying that he does not believe the newspaper should employee journalists. He believes it is better to buy content from content providers or freelance journalists.
“We are not a news agency. We can never compete in that area,” says Ager-Hanssen who believes it would be better to focus on lifestyle content.
One employee told the newspaper Aftonbladet: “There are many of us who cannot understand how this could happen again.” Christen Ager-Hanssen has told SvD that the salaries will be paid.
Last year almost 21,000 work permits and around 10,000 permit extensions for migrant workers from outside the EU were granted, which is the highest figure recorded so far.
The issue has been at the forefront of political debate in recent years and in the spring the Social Democrats presented a proposal to entirely stop migrant workers in professions in which there is no labour shortage. However, in the 73-point agreement negotiated with the Centre Party and Liberals the party has now given its support to current rules.
In a report commissioned by the Confederation of Swedish Enterprise (Svenskt näringsliv) and carried out by analytical company Damvad, it states that foreign labour led to a GDP increase of SEK 34 billion. Turnover in companies that employed foreign labour grew by SEK 64 billion.
Martin Ådahl (C), whose party supports liberal labour immigration, is not surprised: “It is a direct effect of resolving bottlenecks and creating jobs and the indirect effect of having a working system that means people want to come here.”
.Sweden’s exports have increased by SEK 334 billion, 32 per cent, over the past five years, according to Statistics Sweden and the Swedish Export Credit Agency (EKN). Small and medium-sized enterprises, up to 250 employees, have increased exports by 48 per cent over the past five years.
“Small companies are often extremely niche, which means that Sweden, as a market, is too small. The inner market that the EU constitutes and the EU’s free trade deals with a number of countries have huge significance for Swedish companies,” says Carl-Johan Karlsson, director of the SME business area at EKN. He also points out that large companies are dependent on small ones, as they become sub-contractors when they move abroad.
In the period the number of small companies that export has increased by 3,200 companies to 32,697.
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