UPPSALA, Sweden--Regulatory News:
Beijer Alma (STO:BEIAB)
While demand from industrial customers was in line with the corresponding period in the preceding year, sales of chassis springs declined compared with the record-breaking levels reported in the year-earlier period. Lesjöfors’s acquisition of the Asian spring manufacturer John While Group, which generates annual revenues of MSEK 70, has been included in the Group since May and made a positive contribution to invoicing and earnings. The acquisition accounted for approximately 1 percent of growth. The Group’s invoicing declined a total of 3 percent. Adjusted for acquired operations and fluctuations in exchange rates, invoicing fell 2 percent. Order bookings were in line with invoicing and the stock of orders remained largely unchanged during the quarter.
Profit after net financial items totaled MSEK 117, compared with MSEK 125 in the year-earlier period. All subsidiaries reported somewhat lower earnings compared with the year-earlier period. The operating margin declined slightly to 13.3 percent (13.9) despite the decrease in invoicing.
Cash flow after capital expenditures was impacted positively by a decline in tied-up working capital and amounted to MSEK 93 (89). Net debt for the first six months of the year totaled MSEK 394 (402). Cash flow and net debt were impacted negatively by acquisition payments totaling MSEK 40 during the quarter.
Lesjöfors’s invoicing fell 2 percent to MSEK 541 during the second quarter. Acquisitions accounted for approximately 2 percent of growth. Adjusted for corporate acquisitions and fluctuations in exchange rates, invoicing declined 1 percent. The entire decrease was attributable to the Chassis Springs business area, which posted a 9 percent decline in invoicing year-on-year adjusted for fluctuations in exchange rates. In 2015, the business area reported high growth and record-breaking sales. The decline in the first half of this year was particularly notable in the markets that reported high growth in the preceding year, primarily the UK market.
Adjusted for acquisitions and fluctuations in exchange rates, sales of industrial springs increased 4 percent. The same trend was noted in all regions where Lesjöfors operates.
Operating profit amounted to MSEK 110, compared with MSEK 113 in the year earlier period, and the operating margin was largely unchanged.
Habia’s invoicing fell 2 percent compared with the corresponding quarter in the preceding year and amounted to MSEK 169. Adjusted for fluctuations in exchange rates, invoicing increased 2 percent. Sales of cables to telecom customers rose 8 percent, while invoicing to other customer areas declined 1 percent during the quarter adjusted for fluctuations in exchange rates. The decrease in other customer areas was mainly attributable to low deliveries of nuclear power cables, which will be offset by larger planned deliveries during the coming months.
Order bookings exceeded invoicing and the stock of orders was higher than at the start of the quarter and compared with mid-year 2015.
Operating profit amounted to MSEK 16, compared with MSEK 18, and the operating margin was slightly lower than in the second quarter of the preceding year.
Beijer Tech’s invoicing fell 8 percent to MSEK 189 during the second quarter. The entire decrease was attributable to the Industrial Products business area, while the Fluid Technology business area displayed growth and satisfactory profitability. Industrial Products was impacted adversely by the weak offshore market in Norway and low demand from customers in foundries and steelworks in the Nordic region.
Operating profit amounted to MSEK 5, compared with MSEK 7, and the operating margin declined compared with the year-earlier period.
The global industrial economy will likely continue to be characterized by low growth going forward. It is also reasonable to expect demand for chassis springs to remain somewhat weaker in the coming quarters compared with the record-breaking levels reported in the preceding year.
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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