President's statement Q2
Increase in acquisition activity partially offsets lower demand toward the end of the quarter.
The varying demand for Beijer Alma’s products reflects the growing uncertainty in our and our customers’ operating environments. With our diversified customer base in various industries, we can see that many displayed a high level of activity – for example, within the defense, engineering and offshore industries. However, we have noted a clear slowdown within automotive manufacturing and aftermarket compared to last year.
Order bookings decreased during the quarter. Despite varying demand, our earnings for the quarter were the second-best in the Group’s history. Our cash flow for the quarter was negative as a result of recent acquisitions.
Order bookings within Lesjöfors decreased in both business areas. Industry saw a slowdown in the automotive industry, primarily in Germany, while demand in other customer segments remained favorable. For Chassis Springs, demand from end customers was significantly lower than in the year-earlier period, when exceptionally high volumes were reported.
Habia’s strong quarter was driven by high levels of activity in Other Industry within the defense, industrial and offshore customer segments. Telecom remained on par with the last three quarters, but was weaker than in the second quarter of the preceding year, which was the primary reason for Habia’s decreased order bookings.
Beijer Tech had another strong quarter, with profitable growth and increased order bookings. Organic growth from most customer segments and geographic regions was supported by supplementary acquisitions with a strategic focus on broadening the customer base and improving refinement.
So far this year, five supplementary acquisitions have been completed, three of which during the second quarter. These acquisitions contribute MSEK 350 in annual sales. The acquisitions strengthen our subsidiaries and support our strategy of pursuing profitable growth. In May, the group that includes Tribelt and De Spiraal in the Netherlands was acquired. This strengthens Lesjöfors’s platform within industrial springs and expands the product offering to include metal conveyor belts supplying, for example, the food industry. Beijer Tech acquired Codan AS in Norway in May, establishing a platform for geographic expansion in the Fluid Technology business area. In June, Beijer Tech also acquired KTT Tekniikka in Finland, which serves the Finnish market with mechanical power transmission products.
Henrik Perbeck, President and CEO