Interim report Q2
Net revenues amounted to MSEK 1,248 (1,216).
Operating profit totaled to 163 Mkr (187).
Operating margin was 13.0 procent (15.4).
Profit after net financial items totaled to MSEK 160 (183).
Earnings per share amounted to SEK 2.04 kr (2.28).
Order bookings amounted to MSEK 1,182 (1,243).
BEIJER ALMA IN BRIEF
Order bookings declined 5 percent to MSEK 1,182 (1,243) during the quarter. In organic terms – that is, excluding corporate acquisitions and fluctuations in exchange rates – the decrease was 10 percent. Net revenues rose 3 percent to MSEK 1,248 (1,216). In organic terms, net revenues declined 2 percent. Habia and Beijer Tech grew, while sales in Lesjöfors’s Chassis Springs business area declined compared with last year.
Operating profit amounted to MSEK 163 (187) and profit after net financial items to MSEK 160 (183). Earnings per share totaled SEK 2.04 (2.28).
The return on shareholders’ equity was 23.2 percent (29.5) and the return on capital employed was 21.2 percent (26.4). At mid-year, the equity ratio was 48 percent (52) and net debt/equity ratio was 45 percent (31).
Cash flow after capital expenditures amounted to MSEK −160 (126). Cash flow was charged with corporate acquisitions amounting to MSEK 234 (3). Excluding these acquisitions, cash flow was MSEK 74 (129). Habia’s high production volumes for offshore customers led to a temporary increase in tied-up working capital.
The number of employees at the end of period was 2,767 (2,643).
Order bookings declined 8 percent to MSEK 2,333 (2,527), while net revenues increased 3 percent to MSEK 2,414 (2,350). In organic terms, order bookings declined 12 percent and net revenues declined 2 percent. Operating profit amounted to MSEK 324 (346) and profit after net financial items to MSEK 315 (338). Earnings per share totaled SEK 4.03 (4.21). Habia and Beijer Tech improved their earnings, while Lesjöfors had lower earnings than in the year-earlier period.
LESJÖFORS IN BRIEF
Order bookings for Lesjöfors decreased 11 percent to MSEK 645. In organic terms, the decrease was 15 percent. The largest decrease was in Chassis Springs, but order bookings also decreased in Industrial Springs, especially in the automotive industry in Germany. Invoicing amounted to MSEK 679 (738), down 8 percent. In organic terms, the decrease was 12 percent. Operating profit totaled MSEK 118 (163).
Industry’s sales to the German automotive industry were weak. Savings measures have been implemented, including a shortened work week, which had a positive effect on earnings. Volumes also decreased in other markets late in the quarter. Net revenues for Industry amounted to MSEK 491 (489) during the quarter. The Dutch company Spibelt was acquired and consolidated as of May. In organic terms, net revenues declined 5 percent.
Chassis Springs had a weak quarter compared with the record-breaking levels reported last year. The weaker volumes were attributable to a combination of lower end-customer usage and customer de-stocking. The largest decrease was noted in the UK market, which also saw a change in the mix of customers. Net revenues decreased 25 percent to MSEK 187 (249).
During the first half of the year, order bookings amounted to MSEK 1,299 (1,424), down 9 percent. Net revenues declined 4 percent to MSEK 1,369 (1,428). The decrease pertained entirely to Chassis Springs. Operating profit for the period totaled MSEK 243 (304).
HABIA CABLE IN BRIEF
Cable operates in two business areas: Telecom and Other Industry. Order bookings in the quarter decreased 19 percent to MSEK 215 (266). The decrease pertained to the telecom sector. However, net revenues increased 17 percent to MSEK 283 (242) and operating profit increased to MSEK 32 (21). Fluctuations in exchange rates had a positive impact of approximately 2 percent on order bookings and invoicing.
The weak trend in Telecom continued, since no major projects have been rolled out since mid-year 2018 and the delivery rate was more or less on par with the three previous quarters. Net revenues amounted to MSEK 59 (114).
Other Industry displayed a favorable trend, partly due to major offshore orders delivered during the second half of the year gradually being recognized as profit. Volumes from customers in the industrial and defense sectors were also favorable. Net revenues increased to MSEK 223 (128).
During the first half of the year, order bookings decreased to MSEK 452 (633). Net revenues rose 7 percent to MSEK 502 (470). Fluctuations in exchange rates increased order bookings 2 percent and invoicing 2 percent. Operating profit totaled MSEK 47 (35). Telecom had a weak volume trend compared with last year, while Other Industry had strong growth driven by volumes to the offshore industry.
BEIJER TECH IN BRIEF
Sales volumes increased, primarily within Fluid Technology but also within Industrial Products. This growth included most customer groups. Order bookings increased 27 percent to MSEK 321 (252). Organic growth accounted for 17 percent of this increase. Net revenues amounted to MSEK 287 (235), up 22 percent. In organic terms, net revenues increased 11 percent and operating profit increased to MSEK 23 (14).
Two acquisitions were carried out within Industrial Products during the second quarter, while another two were completed during the first quarter, which meant that growth was largely based on acquisitions. The four acquired companies have annual revenues of approximately MSEK 180.
Within Fluid Technology, Svenska Brandslangsfabriken performed well and Lundgrens also grew. In organic terms, net revenues increased 23 percent.
Order bookings increased 24 percent during the first half of the year to MSEK 582 (469). In organic terms, order bookings rose 17 percent. Net revenues amounted to MSEK 543 (452), up 20 percent. In organic terms, net revenues increased 13 percent. Operating profit totaled MSEK 47 (26). The company’s performance was similar during the second quarter, meaning that Industrial Products grew primarily via acquisitions, while Fluid Technology grew organically.
CORPORATE ACQUISITIONS SECOND QUARTER
Lesjöfors acquired shares in the Dutch company Spibelt Beheer B.V., which includes the operating companies Tribelt and De Spiraal. De Spiraal manufactures technical springs and industrial wire products, while Tribelt produces industrial conveyor belts for the customers in the food, processing and pharmaceutical industries. The companies are well established in the market and have stable customer relationships and a broad customer base. The companies have total revenues of approximately MEUR 14 in the European market.
Beijer Tech acquired the Norwegian company Codan AS. The company is a supplier of hoses, couplings and injection systems, with revenues of over MNOK 30 in the Norwegian market.
Beijer Tech also acquired shares in the Finnish company KTT Tekniikka Oy. The company offers a broad range of mechanical power transmission products and service for the Finnish market. The company’s customers operate in the paper and pulp, engineering and processing industries. The company has total revenues of approximately MEUR 7.5 in Finland.
CORPORATE ACQUISITIONS FIRST QUARTER
Beijer Tech acquired the assets and liabilities in Uudenman Murskaus. The company sells spare and wear parts for rock crushers in the Finnish market and generates annual revenues of approximately MSEK 20.
Beijer Tech acquired Encitech Connectors AB in Halmstad, Sweden. The company manufactures and distributes electronic components. The company’s net annual revenues amount to approximately MSEK 50, with about 70 percent of its products exported to some 20 countries.