Niscayah news and numbers

Niscayah release two major pieces of news today: 1. It's going to have a new CEO. 2. Its results for the first three quarters of 2009. Let's have a look. First off, one would think the two are related, but I don't really see anything in the numbers that would say, "out with the CEO."
• Sales increased by 1 percent to MSEK 5,660 (5,620) and the organic sales growth amounted to -10 percent (4). • Sales of services increased by 13 percent to MSEK 2,459 (2,186). • Operating income (EBIT) increased by 24 percent and amounted to MSEK 402 (325), which resulted in an operating margin (EBIT) of 7.1 percent (5.8). • Income before tax increased by MSEK 632 to MSEK 381 (-251). • Foreign exchange rate effects impacted financial net by MSEK 23 (-6). • Net income increased by MSEK 589 to MSEK 265 (-324) and earnings per share increased to SEK 0.72 (-0.89). • The operating cash flow amounted to MSEK 593 (360).
Sure, organic sales are down by 10 percent, but whose organic sales aren't down by 10 percent over last year? And how do you argue with an increase in net income and operating cash flow? That pretty much says to me that the plan to increase service revenue is working, and seeing as how service revenue is up 24 percent, it seems to be working well. So, why are they swapping Juan Vallejo out?
HÃ¥kan Kirstein has been appointed new President and CEO of Niscayah. He will begin working at the company on November 16 and will assume his new role on March 1, 2010.
So, he's not the heir apparent, since he wasn't working there already.
“Håkan’s extensive experience of leading companies undergoing change, combined with his personality and leadership qualities, have convinced the Board of Directors that he is the right person to lead the company’s continued expansion,” says Jorma Halonen, Chairman of the Board at Niscayah.
HÃ¥kan Kirstein graduated from Stockholm University in business administration, and during the past 14 years, he has worked in the StatoilHydro Group. From 2005 to 2009, HÃ¥kan was Managing Director of StatoilHydro in Sweden, and prior to that role, his career included such leading positions as Managing Director of Statoil Detaljist AB.
So, he's been running energy and water companies for the past 14 years, and now he's going to run a service-oriented business? Makes sense to me. Vallejo's being magnanimous, which is to be expected in press releases:
“During the past ten years, I have had the privilege of being involved in developing Niscayah from a Nordic company into a leading European player with operations in 17 companies. Niscayah has a favorable ownership structure, strong leadership and a clear strategy, which means that we have everything required to take the next step in the company’s expansion,” says Juan Vallejo, President and CEO.
And the board likes him still:
“Juan has made a substantial contribution to Niscayah’s development from a division of the Securitas Group into a leading European company. His achievements have been fantastic, particularly during the restructuring efforts of the past year,” says Jorma Halonen, Chairman of the Board at Niscayah.
So, is Juan just retiring? He doesn't seem that old. I'll ask him if I can get him on the phone.


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