UPPSALA, Sweden--(BUSINESS WIRE)--Regulatory News:
Beijer Alma (STO:BEIAB):
CEO’s comments
Invoicing continued to increase during the third quarter, albeit at a slower pace than in the past.
The trend from the first half of the year continued, with favorable growth reported by Habia, mainly driven by a high level of demand in the telecom segment. However, the mild winter weather at the beginning of the year continued to have a negative effect on Lesjöfors’s sales of chassis springs. The Beijer Alma Group sells to several different industries, some of which are sensitive to economic fluctuations and others which are not. The business segments with the greatest dependence on the general economic situation were essentially stable compared with the preceding year.
Profit after net financial items totaled MSEK 97, compared with MSEK 100 in the year-earlier period. The operating margin fell to 12.8 percent (13.7). This slight decline in profitability was mainly the result of changes in the Group’s income structure, with lower income in Lesjöfors replaced by higher income in Habia.
Cash flow amounted to MSEK 74 (80). The Beijer Alma Group maintained a strong financial position. Net debt at the end of the period totaled MSEK 180 (178) and the debt/equity ratio fell to 11 percent (12), which means that the Group has sufficient resources to grow both organically and through corporate acquisitions.
Lesjöfors’s invoicing amounted to MSEK 395, down 7 percent year-on-year. This decline was attributable to weaker demand in the Chassis Springs business area, whose sales fell 26 percent. Sales of chassis springs were impacted significantly by the mild winter. However, a comparison with the figures for 2013 is challenging, since demand at the time was impacted by exceptionally favorable weather conditions. Sales of industrial springs grew 2 percent. Demand in the UK operations increased sharply. Germany also reported growth, while the Nordic region remained stable. The conclusion of project transactions in the telecom sector continued to exert pressure on the company’s income in China.
Operating profit amounted to MSEK 66, compared with MSEK 83 in the year-earlier period, and the operating margin declined year-on-year. This decline in earnings was fully attributable to Chassis Springs, while the Industry business area reported an unchanged operating margin and earnings.
Habia’s invoicing rose 29 percent to MSEK 195. Telecom customers continued to account for most of this increase. Sales of cables for base-station antennas rose 61 percent. However, order bookings increased at a slower pace, which may indicate that demand has now stabilized at a historically high level. Other customer segments grew 10 percent. This improvement in invoicing was mainly attributable to deliveries of cables used in nuclear power plants.
Operating profit increased to MSEK 24, compared with MSEK 15 in the year-earlier period. The favorable capacity situation in the Telecom business area contributed to the company’s improved earnings and higher operating margin.
Habia decided to relocate its entire manufacturing operation for cables for base-station antennas to China. Preparations will be made in the fourth quarter of 2014 and the move is expected to be completed in the second half of 2015. The company’s manufacturing capacity will also be expanded in conjunction with the relocation.
Beijer Tech’s invoicing was essentially unchanged compared with the year-earlier period and amounted to MSEK 181 (178). Operating profit rose to MSEK 13 (10), resulting in an improved operating margin. The Fluid Technology business area reported a strong sales and earnings trend, as well as a higher operating margin. While the sales trend in Industrial Products was somewhat negative, the business area maintained its earnings and reported a slightly stronger operating margin.
In conclusion, the level of risk in the global economy has increased in recent months. However, the demand situation is relatively stable compared with earlier quarters.
Bertil Persson President and CEO
Beijer Alma AB (publ) is an international industrial group that focuses on component production and industrial supplies. The Group includes Lesjöfors, one of Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest manufacturers of custom-designed cables and Beijer Tech, with strong positions in industrial supplies in the Nordic region. Beijer Alma is listed on NASDAQ OMX Stockholm Mid Cap.
Beijer Alma AB (publ) Dragarbrunnsgatan 45, Box 1747, SE-751 47 Uppsala, Sweden. Telephone +46 18 15 71 60. Fax +46 18 15 89 87. Registered office: Uppsala. Corp. Reg. No: 556229-7480. www.beijeralma.se
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