SKÅNES FAGERHULT, Sweden--(BUSINESS WIRE)--Regulatory News:
Concentric AB (STO:COIC)
First nine months of 2015: Solid results strengthened by currency gains
· Net sales for the first nine months, excluding Alfdex: MSEK 1,802 (1,543) – down 5% year-on-year, after adjusting for currency (+17%) and acquisition of GKN Pumps (+5%)
· Operating income for first nine months: MSEK 298 (247), including income of MSEK 15 (nil) arising from negative goodwill and one-off expenses of MSEK 14, both associated with the acquisition of GKN Pumps – underlying operating margin of 16.5% (16.0)
· Earnings after tax for first nine months: MSEK 217 (177) – basic EPS of SEK 5.13 (4.08)
· Group’s net debt at end of Q3: MSEK 451 (414) – gearing ratio of 53% (49), including own share buy-backs of MSEK 92 (98)
Third quarter of 2015: Operations flexed to match lower market demand
· Net sales for Q3, excluding Alfdex: MSEK 559 (520) – down 10% year-on-year, after adjusting for currency (+13%) and acquisition of GKN Pumps (+5%)
· Operating income for Q3: MSEK 93 (86) – operating margin of 16.6% (16.4) · Earnings after tax for Q3: MSEK 66 (64) – basic EPS of SEK 1.57 (1.47)
· Solid cash flow from operating activities for Q3: MSEK 70 (84)
President and CEO, David Woolley, comments on interim report for Q3 2015:
“The group’s performance in the first nine months of 2015 was strengthened by significant translational currency gains derived from the relative weakness of the Swedish Krona. Underlying sales for the third quarter of 2015, excluding the impact of currency and the acquisition of GKN Pumps, were down 10% year-on-year as a result of a continued softening in demand across most of our end-markets, primarily in North America. The exception to this rule was the medium and heavy duty truck market where we continued to see modest growth. The softening in demand has particularly affected sales of our hydraulic product range but, similar to previous downturns, the group’s flexibility has ensured that the underlying EBIT margin actually improved to 16.6% for the third quarter.
Looking forward, the orders received, and expected to be fulfilled during the fourth quarter of 2015, were broadly in line with the sales levels of the third quarter of 2015, taking into account the fewer working days in the fourth quarter. Despite these market headwinds, Concentric remains well positioned, both financially and operationally, to fully leverage our market opportunities.”
Concentric AB (publ) is listed on NASDAQ OMX Stockholm, Mid Cap. The information in this report is of the type that Concentric is required to disclose under the Swedish Securities Market Act. The information was submitted for publication at 8.00am on 23 October, 2015.
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