Organic growth on weaker market, good cash flow but lower operating margin
FIRST QUARTER
- Net sales reached SEK 807 million (796), up 1.4% on the same period last year.
- Earnings (EBIT) were SEK 40 million (54), which gave an operating margin of 5.0% (6.7). Disturbancies in production in the beginning of the quarter combined with extra costs
for the start-up of new customer projects had a negative impact on earnings.
- The profit after tax for the quarter was SEK 30 million (23).
- Order bookings amounted to SEK 865 million (838), up 3.1% on the same period last year.
- Cash flow from operating activities was SEK 50 million (40).
- Earnings per share were SEK 1.42 (1.98).
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER
- Term sheet signed with Russian company GAZ Group whereby FinnvedenBulten intends to invest approximately EUR 6.6 million and receive an ownership share of 63% in a new joint venture company that will supply fasteners to the automotive industry in Russia.
"FinnvedenBulten reported increased order bookings and sales in a weaker Western European market. Adjusted for exchange rate differences, FinnvedenBulten's organic growth was 1.5% compared with the strong performance in the first quarter of 2011. The Group has a strong financial position with a low net-debt-to-equity ratio and good cash flow from current operations. Initially, the quarter was unfortunately affected by disturbances and imbalance in production, but the production situation improved significantly in March.
The Finnveden Metal Structures division was also burdened by extra start-up and running-in costs for new customer projects. An improvement program is in place and is expected to bring continued progress during the coming quarters. Development for the Bulten division remains good and after the end of the period the division signed a term sheet with GAZ Group concerning the joint venture company that will supply fasteners to the automotive industry in Russia. The automotive industry has expressed great interest in the company's establishment in Russia. The establishment is an important step in our strategy for expansion on growth markets."
Johan Westman, President and CEO
The report will be presented by FinnvedenBulten's President and CEO Johan Westman at a teleconference on Thursday, April 26 at 14:30 CET.
The full report is attached to this press release. Copies of the presentation will be available on www.finnvedenbulten.comapproximately 30 minutes before the conference starts.
To participate in the telephone conference, please call 5 minutes before the opening of the conference to Sweden +46 (0)8 506 269 00, UK +44 (0)207 750 9905, US +1 631 886 5378. Code: 639744#
A replay of the telephone conference is available until November 15, 2011 on the phone numbers: Sweden +46 (0) 8-506 269 49, UK +44(0) 207 750 99 28, USA +1 866 305 62 92. Code: 269799#.
For further information, please contact:
Johan Westman, President and CEO
Tel: + 46 (0)31-734 59 00
Kamilla Oresvärd, Vice President Corporate Communications
Tel: +46 (0)70-520 59 17, e-mail: kamilla.oresvard@finnvedenbulten.com
NB
The information in this announcement is required to be disclosed by FinnvedenBulten AB (publ) under the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13:00 CET on, April 26, 2012.
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions - Bulten and Finnveden Metal Structures - both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com
http://www.cisionwire.com/finnvedenbulten-ab/r/finnvedenbulten-interim-report-for-the-period-january---march--2012,c9252138
http://mb.cision.com/Main/405/9252138/7459.pdf