President's statement Q2
Acquisitions fueled growth during a quarter with varying demand.
Demand from Beijer Alma’s customers varied during the third quarter. The rate of activity in the defense, engineering and offshore industries, for example, remained high. The automotive industry – with respect to both manufacturing and the aftermarket – has slowed over the past year, but stabilized toward the end of the quarter.
In organic terms, order bookings decreased marginally, while net revenues increased slightly. As a result of acquisitions, favorable growth was achieved. Earnings trends varied between the subsidiaries, and the Group’s margin was lower overall. Excluding acquisition payments, cash flow improved significantly compared with previous quarters.
Order bookings remained unchanged for Lesjöfors, while net revenues declined. Toward the end of the quarter, revenues stabilized for both business areas. The peak season effects in Chassis Springs began to taper off toward the end of the quarter and demand from end customers has been lower this year, further amplified by de-stocking.
Within Habia, the improvements noted during the quarter were driven by a strong performance in Other Industry, mainly attributable to customers in defense, offshore and industry. Telecom’s performance recovered compared with previously low levels. The earnings improvement for Habia as a whole was substantial.
Beijer Tech reported a favorable quarter with profitable growth. The company noted positive organic growth and the contributions from acquired companies strengthened Beijer Tech’s revenues and earnings.
The five acquisitions carried out during the first half of the year have been successfully incorporated into the Group and are contributing to the Group’s earnings. No further acquisitions were carried out in the third quarter. Our strategy to strengthen our subsidiaries through value-generating supplementary acquisitions remains firm.
Henrik Perbeck, President and CEO