Interim report Q4
Net revenues rose to MSEK 1,061 (1,043).
Operating profit declined to 123 Mkr (129).
Operating margin was 11.7 procent (12.4).
Profit after net financial items totaled to MSEK 119 (126).
Earnings per share amounted to SEK 1.54 kr (1.72).
Order bookings amounted to MSEK 1,074 (1,036).
BEIJER ALMA IN BRIEF
Order bookings for the quarter rose 13 percent to MSEK 1,074 (947). In organic terms, however – meaning excluding corporate acquisitions and fluctuations in exchange rates – order bookings declined 7 percent. Net revenues increased 1.7 percent to MSEK 1,061 (1,043). In organic terms, order bookings declined 9 percent. Sales declined in Lesjöfors, but increased in Habia and Beijer Tech.
Operating profit totaled MSEK 123 (129) and profit after net financial items amounted to MSEK 118 (126). Earnings per share declined to SEK 1.54 (1.72).
During the fourth quarter, the return on shareholders’ equity was 15.7 percent (18.1) and the return on capital employed was 14.1 percent (17.4).
Cash flow after capital expenditures totaled MSEK 201 (55). At the end of the quarter, the equity ratio was 53.0 percent (59.9) and the net debt/equity ratio was 29.9 percent (19.7).
The number of employees during the period increased to 2,708 (2,610).
During the year, order bookings declined 1.9 percent to MSEK 4,524 (4,615). In organic terms, order bookings declined 6 percent. Net sales increased 4.9 percent to MSEK 4,622 (4,409), down 3 percent in organic terms.
Operating profit totaled MSEK 583 (623) and profit after net financial items amounted to MSEK 557 (609). Earnings per share amounted to SEK 7.15 (7.78). Habia and Beijer Tech improved their earnings, while Lesjöfors’s earnings were lower than in the year-earlier period.
LESJÖFORS IN BRIEF
Order bookings in the fourth quarter increased to MSEK 625 (581). In organic terms, however, order bookings declined 2 percent. Net revenues rose 1.3 percent to MSEK 591 (583). In organic terms, net revenues decreased 8 percent. Operating profit in the fourth quarter totaled MSEK 106 (105).
Net revenues for Industry amounted to MSEK 464 (460) for the quarter. In organic terms, however, net revenues declined. Demand decreased in most markets and remained low in the automotive industry in Germany and Asia.
Chassis Springs is seasonal in nature, with higher net revenues during the first half of the year. The fourth quarter is the company’s low season. Net revenues rose 3.3 percent to MSEK 127 (123) during the quarter.
During the year, order bookings declined 3.1 percent to MSEK 2,535 (2,616). In organic terms, the decrease was 10 percent. Net revenues increased 2.3 percent to MSEK 2,564 (2,625). In organic terms, the decrease was 9 percent. Net revenues within Industry rose 3.2 percent to MSEK 1,923 (1,864). Net revenues in Chassis Springs declined 15.7 percent to MSEK 641 (761). Lower end customer consumption and customer de-stocking resulted in weaker sales compared with the record-breaking levels in the year-earlier period. Operating profit totaled MSEK 441 (531).
Ola Tengroth took over as the new President at year-end.
HABIA CABLE IN BRIEF
Order bookings in the quarter rose 7.8 percent to MSEK 193 (209). Net revenues declined 5.5 percent to MSEK 198 (210). Exchange-rate fluctuations had a positive impact of approximately 1 percent on order bookings and invoicing. Operating profit declined to MSEK 6.1 (8.7).
Telecom’s net revenues declined 18.8 percent to MSEK 47 (58). The market remained weak.
Within Other Industry, activity among defense customers was favorable, while demand from European industry declined. Deliveries of offshore orders continued during the quarter. Net revenues in Other Industry declined 0.5 percent to MSEK 151 (152).
During the January to December period, order bookings declined 15.5 percent to MSEK 882 (1,044). Deliveries to the offshore sector pertained to the major orders received in 2018. New orders were signed in 2019, but not to the same extent as in the preceding year. Net revenues amounted to MSEK 978 (870), up 12.5 percent. Fluctuations in exchanges rates boosted order bookings and invoicing by nearly 3 percent. During the year, net revenues in Telecom declined to MSEK 227 (313), while net revenues in Other Industry increased to MSEK 751 (558). Habia’s operating profit improved to MSEK 80 (57).
BEIJER TECH IN BRIEF
Order bookings rose 3.8 percent to MSEK 255 (246). In organic terms, however, order bookings declined 17 percent. Net revenues increased 8.7 percent to MSEK 272 (250), but decreased 12 percent in organic terms. Operating profit totaled MSEK 15 (18).
Net revenues in Industrial Products rose 14.2 percent to MSEK 154 (135). Demand declined. Three acquisitions were carried out in the business area during the year. Excluding this acquisitions, net revenues increased 15 percent.
Net revenues in Fluid Technology rose 2.4 percent to MSEK 118 (115). Excluding corporate acquisitions, net revenues declined 5 percent.
Order bookings in the January to December period amounted to MSEK 1,135 (955), up 16 percent. In organic terms, the increase was 1 percent. Net revenues rose 18.3 percent to MSEK 1,080 (913). In organic terms, the increase was 4 percent. Operating profit totaled MSEK 81 (60).
Staffan Johansson, former CEO of Lundgrens – Beijer Tech’s largest subsidiary – took over as President as of December 1, 2019.
CORPORATE ACQUISITIONS IN 2019
No acquisitions were carried out during the third and fourth quarters. The following acquisitions were carried out during the first and second quarters.
- Lesjöfors acquired the shares of 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 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 shares of 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 the shares of 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.
- Beijer Tech acquired the assets and liabilities of 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.