Henrik Perbeck,  President and CEO Henrik Perbeck,  President and CEO

2019 annual report

Overall, 2019 was a strong year – and the second-best in the Group’s history. However, our performance varied between subsidiaries and business areas as well as between customer segments and markets. Net revenues increased, while operating profit decreased. Several acquisitions helped to create growth.

The uncertainty we communicated at the beginning of the year was also evident when it came to demand, which varied throughout 2019. Several segments and markets, such as the defense, engineering and offshore industries, displayed growth thanks to our broad customer base. However, we noted a clear slowdown within automotive manufacturing and aftermarket as well as telecom. Growth was created through several supplementary acquisitions rather than organically. We welcomed five new companies to Beijer Alma. These acquisitions strengthen the Group in various ways and contribute approximately MSEK 350 in sales on an annual basis.

Looking more closely at the performance of our subsidiaries, Beijer Tech and Habia Cable contributed earnings improvements and higher operating margins, while Lesjöfors’s operating margin was lower than in the preceding year. Lesjöfors’s global industrial business was stable in most regions – including the Nordic region and North America – but was also affected by a weaker trend in the automotive industry, especially in Germany. Within Chassis Springs, demand in Europe was significantly lower than in the record-breaking year of 2018. In Habia, deliveries to the offshore industry played an important role, while volumes in Telecom declined. In Beijer Tech, the rate of acquisition and organic growth in Fluid Technology helped to make 2019 a strong year.

Beijer Tech’s acquisition in Norway also enabled Fluid Technology to expand into a new, attractive market. The two acquisitions in Finland brought new industrial segments to Beijer Tech: spare parts for rock crushers and mechanical transmission products. The acquisition of Encitech, which specializes in electronic components, increased the share of manufacturing and exports. Within Lesjöfors, an acquisition in the Netherlands expanded the customer base and opened up a new market within applications for conveyor belts.

Sustainable business

Throughout the year, a great deal of work was devoted to setting new objectives to ensure that Beijer Alma’s operations are responsible and sustainable moving forward. All production units contributed to this work by establishing their own plans and ambitions. This resulted in an increased commitment to sustainability based on our decentralized management model. Our sustainability efforts are linked to the Global Compact and the UN Sustainable Development Goals (SDGs). Our new objectives emphasize the importance of sound business ethics. Training material was also developed in this area in 2019, taking the Code of Conduct as a starting point. In certain areas, we established more ambitious objectives, not least because climate change is an issue that concerns many of our employees.

Sights set on 2020

Several initiatives are being implemented across the Group to make us more competitive. These include increasing the degree of automation in our production operations and building new, state-of-the-art plants. Given today’s cautious economic situation as well asother uncertainty factors that could affect trade flows and the general business climate, we are focusing, as always, on the areas that we can influence. Overall, the Group is strong – both financially and in terms of our broad customer base, which limits our risks and various dependencies. In light of the prevailing uncertainty factors, the companies are also prepared for further cost adjustments.

Just like in 2019, we consider acquisitions to be an important way to continue our profitable growth going forward. We are therefore pleased to note that Lesjöfors acquired the UK company Metrol Springs in January 2020, while Beijer Tech acquired PA Ventiler via Lundgrens Sverige. The year also began with some new faces in the management team, and I would like to welcome Staffan Johansson as President of Beijer Tech and Ola Tengroth as President of Lesjöfors.

Throughout the Group, I am impressed by our employees’ efforts and commitment to our customers, and the many initiatives taken – thank you for your contributions! I would like to say a special thank you to Kjell-Arne Lindbäck for the 23 years he has spent at Lesjöfors, where he led the company through a journey of impressive growth, creating significant value for Lesjöfors, Beijer Alma and all of our shareholders.

Henrik Perbeck, President and CEO

4,622

Net revenues totaled MSEK 4,622 (4,408).

583

Operating profit totaled MSEK 583 (623).

12.6%

Operating margin was 12.6 percent (14.1).

557

Profit after net financial items totaled MSEK 557 (609).

7.15

Earnings per share totaled SEK 7.15 kr (7.78).

–2%

Order bookings declined 2 percent to MSEK 4,524 (4,615).

Invoicing (MSEK)

Profit after net financial items (MSEK)

FOUR SUSTAINABILITY OBJECTIVES

New sustainability objectives were established for 2019 to 2023. This work was carried out together with the managers at some 30 manufacturing units and in collaboration between Group management and the sustainability managers of the subsidiaries. These four objectives are also connected to nine of the 17 UN Sustainable Development Goals, which act as a compass for the Group.
Read more about sustainability

EXPANSION

Beijer Tech completed four acquisitions in 2019. First was Uudenmaan Murskaus, which sells spare parts for rock crushers. Encitech was then acquired, which manufactures and distributes electronic components for industry. Codan was added to the Fluid Technology business area and is establishing operations in the Norwegian market. The fourth acquisition of the year involved the Finnish company KTT Tekniikka, which strengthened Beijer Tech’s market position in Finland and established a position in the area of mechanical transmission, which become a new segment.
Read more about acquisitions
Read more about Beijer Tech

BROADENING

Lesjöfors acquired the Dutch company Spibelt, including the businesses De Spiraal and Tribelt. De Spiraal’s spring operations have broadened the customer base in various sectors, such as food, pharmaceuticals and energy. Through Tribelt, the Group has gained access to a new market, namely applications for conveyor belts.
Read more about acquisitions
Read more about Lesjöfors

DIVIDENDS

The board proposes a dividend of SEK 2.50 (5.10).
Read more about the share

5%

Net revenues rose 5 percent to MSEK 4,622 (4,409).
Read a multi-year overview

SUBSIDIARY PRESIDENTS

Ola Tengroth was appointed as the new President of Lesjöfors. He has extensive experience from senior positions in various industrial companies and most recently served as CEO of Kemetyl. In 2020, Ola Tengroth will succeed Kjell-Arne Lindbäck, who has retired after 23 years as President.
Read more about Lesjöfors

Staffan Johansson assumed the position of President of Beijer Tech during the year. Staffan Johansson formerly served as CEO of Lundgrens, Beijer Tech’s largest business, as well as Business Area President for Fluid Technology.
Read more about Beijer Tech

OFFSHORE

Habia Cable delivered its first major customer orders in offshore. The cables are based on a technology that the company developed for the oil and gas industry, for example, where they are used to heat pipelines on the sea bed. As part of the focus on offshore, significant investments were also made in manufacturing capacity at the plant in Söderfors. During 2019, more than a million meters of cable were delivered.
Read more about Habia Cable

MSEK 350

The companies acquired in 2019 contribute annual sales of MSK 350.
Read more about acquisitions

Q1

  • Demand remained strong in Europe and the US.
  • Weaker automotive industry in Germany and China impacted the overall scenario.
  • Cost adjustments were implemented.
  • Delivery of offshore projects commenced.
  • Beijer Tech acquired Encitech.

Q2

  • Distinct slowdown in the automotive and telecom industries.
  • Continued favorable demand in other segments.
  • Second-best quarterly earnings in the Group’s history.
  • Lesjöfors acquired Tribeltand De Spiraal. Beijer Tech acquired Codan and KTT Tekniikka.

Q3

  • Distinct slowdown in the automotive and telecom industries.
  • Continued favorable demand in other segments.
  • Second-best quarterly earnings in the Group’s history.
  • Lesjöfors acquired Tribeltand De Spiraal. Beijer Tech acquired Codan and KTT Tekniikka.

Q4

  • Clearer slowdown than in earlier quarters.
  • Defense and offshore industry remained strong.
  • Decline in the engineering industry and automotive manufacturing.
  • The automotive aftermarket stabilized.

NEXT REPORT

The next interim report for January–June will be published on August 21. For more information about the company’s activities, visit our calendar

2019 Annual Report

Read the 2019 Annual and Sustainability Report 2019

In the ten-year summary on page 17 of the Annual Report 2019, a number of key figures (alternative performance measures) for the analysis of trends and performance. Some of the key figures are not directly retrieved from, or easily reconciled against, the Group’s financial reports according to IFRS or the Annual Report notes and the calculations of the key figures for the years 2018 and 2019 therefore appear in the pdf for key figures