UPPSALA, Sweden--(BUSINESS WIRE)--Regulatory News:
The second quarter of 2015 was the Beijer Alma Group’s (STO:BEIAB) strongest quarter to date in terms of earnings
CEO’s comments The second quarter of 2015 was the Beijer Alma Group’s strongest quarter to date in terms of earnings. Profit after net financial items amounted to MSEK 125, corresponding to a year-on-year increase of MSEK 9. The Group’s earnings and operating margin were impacted positively by exchange-rate effects, as well as by the extensive changes made to the product compared with the year-earlier period. The operating margin was 13.9 percent (13.4).
Invoicing rose 6 percent during the quarter. However, when adjusted for acquisitions and exchange-rate effects, invoicing fell 3 percent. The pattern noted in earlier quarters continued. Operations that are dependent on the general economic trend were relatively stable and sales of telecom products were weak, while Lesjöfors’s Chassis Springs operations and Habia’s sales to customers in the nuclear power segment displayed a high level of growth.
Cash flow after capital expenditures was impacted positively by a reduction in working capital in Lesjöfors and Habia and totaled MSEK 89 (78) for the quarter. Net debt at the end of the quarter amounted to MSEK 402 (255).
Lesjöfors’s invoicing rose 21 percent during the quarter. Adjusted for acquisitions and exchange-rate effects, the increase totaled 9 percent. The entire increase was attributable to the company’s Chassis Springs operations, where sales rose 26 percent, adjusted for exchange-rate effects. The increase since the start of the year was 14 percent. After a temporary dip in 2014, record-breaking sales were reported in 2015. The company’s sales are seasonal by nature and, although the peak season passed in the second quarter, demand in the third quarter is expected to continue to exceed the levels reported in the preceding year.
Adjusted for acquisitions and exchange-rate effects, sales of industrial springs increased 1 percent. All regions reported largely stable invoicing compared with the year-earlier period. However, order bookings were lower than invoicing in the industrial springs segment over the past three months.
Operating profit for the Lesjöfors Group amounted to MSEK 113, compared with MSEK 88 in the corresponding quarter in 2014. The operating margin was impacted positively by the company’s increased sales of chassis springs.
Habia’s invoicing fell 14 percent in the second quarter. Adjusted for exchange-rate effects, the decrease was 23 percent. This sharp decline was attributable to weaker telecom sales than in the year-earlier period. The comparative data for the preceding year was also record-high. The company’s order bookings indicate that demand will improve in the coming months. The company no longer produces telecom products in Sweden and its production equipment has been relocated to China. Once the move is complete, the company’s total production capacity will increase slightly compared with previous years, while its production costs will be reduced.
Adjusted for exchange-rate effects, invoicing in the company’s other product areas was in line with the year-earlier period. However, order bookings increased to a number of orders received by Habia from customers in the nuclear power segment during the quarter. These orders will entail a high production capacity and invoicing in the coming quarters.
Operating profit amounted to MSEK 18 (22). The operating margin was also slightly lower than in the year-earlier period. This decline in profitability was due to weaker sales of telecom products.
Beijer Tech’s invoicing fell 7 percent during the second quarter. This decline was attributable to the Industry business area, while Fluid Technology reported somewhat higher invoicing than in the year-earlier period. Within the industrial segment, weak trends were primarily noted in the operations focused on offshore and foundries. Operating profit totaled MSEK 7, compared with MSEK 14 in the corresponding quarter in 2014. The operating margin also fell during the period.
Staffan Andersson assumed the position as the new President of Beijer Tech in April. Over the past few months, a number of organization changes were initiated and carried out in the company, including the hiring of a new CFO.
We expect the trend in the general industrial segment to remain stable or weaken slightly. However, this will be offset by strong demand in Lesjöfors’s Chassis Springs business area and Habia’s nuclear power operations. These trends are expected to continue during the autumn. We also expect an increase in demand from Habia’s telecom customers during the coming months.
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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