Sweden's Investor AB sees wider 3rd quarter loss

The Stockholm-based company reported a third-quarter net loss of 8.8 billion kronor ($1.2 billion), widening from 7.8 billion kronor in the year ago period.

Net asset value--the value of the company's assets minus debts--came to 130.2 million kronor ($18.3 million) as at Sept. 30, down from 155.2 million kronor at the end of 2007.

Chief Executive Borje Ekholm described the U.S.-led financial crisis as "torturous in nature," and warned it would take time for the world's financial market to "work out this situation."

Ekholm suggested ways in which similar situations could be avoided in the future, saying "too much focus on short-term performance has in many cases led to wrong incentives, driving unhealthy risk-taking."

He said managers should instead "share the downside, and pain, with the shareholders."

For Investor, however, Ekholm said the current situation could pose good investment opportunities, likely within a three- to five-year perspective.

"The current environment will offer opportunities for our holdings to strengthen their market positions, for example through acquisitions," where rapid access to capital would be key to success, he said.

Investor's core holdings include engineering companies ABB and Atlas Copco, drugmaker AstraZeneca, appliance maker Electrolux, wireless network maker LM Ericsson and bank Skandinaviska Enskilda Banken, also known as SEB.

ABB and SEB weighed the most on the earnings, while truckmaker Scania had the most positive impact, it said.