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

Varying demand and acquisitive growth

Group

Demand in the quarter varied between geographic regions and customer segments and was generally weaker than in earlier quarters. The Nordic region remained relatively strong with stable volumes, while demand in the rest of Europe and Asia declined, partly as a result of customers reducing their inventory levels. Inflation continued to fuel cost increases and higher inventory values. The focus was therefore on compensating with price increases and on readjusting inventory levels as the supply chains stabilized. At the start of the new year, we saw a return to more stable demand.

Subsidiaries

Lesjöfors noted mixed demand, although with major variations between geographic regions and customer segments. In the Chassis Springs business area, which has its low season in the fourth quarter, volumes were lower than in the year-earlier period, mainly due to the discontinuation of sales to Russia. Within Industrial Springs, the Nordics were the strongest region, along with the North American market. In Asia and Central Europe, demand was generally weaker and varied more between customer segments and countries. The acquired companies Alcomex, Plymouth Spring and John Evans’ Sons all contributed profitable growth.

For Beijer Tech, which operates in the Nordic market, demand was generally stable, with a certain slowdown in order bookings towards the end of the quarter. Price increases contributed to organic growth, and the acquired companies Swedish Microwave and Mountpac generated additional profitable growth.

Strategy and acquisition

In October, Lesjöfors acquired the Turkish company Telform, which manufactures industrial springs for a diversified domestic and European customer base. The acquisition is strategically important since it has enabled Lesjöfors to expand its production footprint and low-cost manufacturing capabilities.

Two additional acquisitions were carried out in January 2023. Amatec, a successful Dutch spring distributor, became part of Lesjöfors’s subsidiary Alcomex. Beijer Tech acquired Botek, a niched manufacturer of scales and RFID systems for waste management vehicles.

The company offers highly technical proprietary products and commands a strong position in the Nordic region and is exposed to an interesting and growing international market.

The divestment of Habia Cable was completed in October. As a result, we have strengthened the Group’s strategic focus and ensured continued scope for creating value through investments and acquisitions in Lesjöfors and Beijer Tech. At the same time, we are prepared to act quickly and adapt in an uncertain world, where new opportunities may arise.

Henrik Perbeck, President and CEO

Q4 in summary

2022 Q4 2021 Q4 Change % 2022 full-year 2021 full-year
Net revenues, MSEK 1,461.5 1,232.8 18.5 5,865.8 4,579.9
Operating profit, MSEK 170.0 174.3 –2.5 772.9 711.7
Operating margin, % 11.6 14.1 13.2 15.5
Operating profit before items affecting comparability 170.0 174.3 –2.5 797.9 757.0
Operating profit before items affecting comparability, % 11.6 14.1 13.6 16.5
Profit after net financial items, MSEK 122.4 164.8 –25.8 703.8 680.8
Earnings per share, SEK ** 7.29 2.11 245.5 15.92 9.43
Order bookings, MSEK 1,428 1,312 9 5,682 4,750
Net debt, MSEK 1,833.3 1,323.7 38.5 1,833.3 1,323.7
Net debt/equity ratio, % * 44.6 46.0 44.6 46.0
Cash flow after capital expenditures, before Corporate aquisitions ** 814.8 146.1 978.8 560.0

* comparison periods not recalculated in relation to Discontinued operations
** includes Discontinued operations

The board proposes a dividend of SEK 3.75 per share (3.50)

Condensed cash-flow statement, Group. MSEK

2022 Q4 2021 Q4 2022 full-year 2021 full-year
Cash flow from operating activities before change in working capital and capital expenditures 199.0 157.0 1,036.9 843.0
Change in working capital, increase (–) decrease (+) –76.9 45.5 –601.4 –114.0
Cash flow from operating activities 122.1 202.5 435.5 729.0
Investing activities 30.1 –56.4 –119.3 –169.0
Divested companies less cash and cash equivalents 662.6 662.6
Acquired companies less cash and cash equivalents –97.9 –147.4 –1,284.6 –1,046.0
Cash flow after capital expenditures 716.9 –1.3 –305.8 –486.0
Financing activities –403.2 –20.0 560.6 335.3
Change in cash and cash equivalents 313.7 –21.3 254.8 –150.7
Whereof cash and cash equivalents from discontinued operations 662.6 –18.0 600.0 –36.8
Cash and cash equivalents at beginning of period 440.0 491.1 480.5 616.1
Exchange-rate fluctuations in cash and cash equivalents 0.7 10.7 19.1 15.1
Cash and cash equivalents at end of period 754.4 480.5 754.4 480.5
Whereof cash and cash equivalents from discontinued operations 75.5 75.5
Approved but not utilized comitted credit facilities 1,002.7 899.1 1,002.7 899.1
Available liquidity 1,757.1 1,379.6 1,757.1 1,379.6

Lesjöfors

2022 Q4 2021 Q4 Change % 2022 full-year 2021 full-year
Net revenues 997.2 822.6 21.2 4,073.3 3,197.8
Net revenue, Industry 840.0 635.5 32.2 3,258.7 2,305.3
Net revenue, Chassi Springs 157.2 187.3 –16.1 814.6 892.7
Operating profit 139.4 135.1 3.2 615.7 607.2
Operating margin, % 14.0 16.4 15.1 19.0
Order bookings 1,019.0 880.0 15.8 4,022.0 3,317.0

Beijer Tech

2022 Q4 2021 Q4 Change % 2022 full-year 2021 full-year
Net revenues 464.3 398.7 16.5 1,790.2 1,382.2
Net revenue, Industrial Products 301.6 232.8 29.6 1,135.5 827.2
Net revenue, Fluid Technology 162.7 165.9 –1.9 654.6 555.0
Operating profit 38.7 48.3 –19.9 186.0 129.4
Operating margin, % 8.3 12.1 10.4 9.4
Order bookings 409.0 432.0 –5.3 1,660.0 1,433.0

Habia Cable

2022 Q4 2021 Q4 Change % 2022 full-year 2021 full-year
Net revenues 213.9 776.6 808.6
Operating profit 15.0 106.1 63.1
Operating margin, % 7.0 13.7 7.8
Order bookings 251.0 833.0 920.0

Parent company, MSEK

2022 Q4 2021 Q4 2022 full-year 2021 full-year
Administrative expenses –11.5 –12.1 –46.1 –41.7
Other operating income 3.5 4.6 17.2 18.2
Operating loss –7.9 –7.6 –28.9 –23.5
Group contributions 29.0 92.9 29.0 92.9
Income from participations in Group companies 579.9 280.0 579.9 280.0
Interest income and similar revenues 17.9 30.5 0.2
Interest expence and similar expenses –15.1 –1.0 –29.0 –3.5
Profit/loss after net financial items 603.8 364.3 581.5 346.1
Tax on profit for the period –2.7 –11.8 –2.7 –12.5
Net profit 601.1 352.5 578.8 333.6

NEXT REPORT

The next interim report for January–March will be published on April 27. For more information about the company’s activities, visit our calendar
Find all of the Group’s reports here