Interim report 1 January – 30 June 2019
The interim period
» Net revenue totalled SEK 1,145 million (1,045)
» Operating profit amounted to SEK 145 million (122)
» Profit before tax amounted to SEK 136 million (115)
» Profit after tax amounted to SEK 106 million (90)
» Earnings per share were SEK 3.80 (3.22)
The second quarter
» Net revenue totalled SEK 581 million (541)
» Operating profit amounted to SEK 74 million (61)
» Profit before tax amounted to SEK 69 million (59)
» Profit after tax amounted to SEK 54 million (47)
» Earnings per share were SEK 1.93 (1.67)
Important events during the period
» A 2:1 share split was carried out in June
Events after the end of the period
» Acquisition of Kuggteknik
CEO’s comments on the Group’s development during the period
The Group companies once again reported strong figures over the past three-month period, and excellent results for both the second quarter and the whole of the first half-year were achieved. The market conditions remained generally good, with incoming orders at a stable, satisfactory level. During the interim period, sales growth amounted to 10 per cent, of which 6 per cent was organic. Operating profit improved by 19 per cent and the operating margin rose from 11.7 to 12.7 per cent. The profit margin stood at 11.9 per cent.
Within the Industrial Products business unit, invoicing increased by 6 per cent, while operating profit exceeded last year’s figure by 19 per cent. Targeted work in relation to organisational development and efficiency improvements had a positive impact on our margins. In terms of the market, we witnessed strong growth for proprietary products, particularly within the infrastructure segment, with several new products being launched. For our standard products targeted primarily at furniture and fittings manufacturers, the growth on new export markets continued. Several projects linked to sustainability, including efforts to increase recovery and recycling of plastics, are in progress.
The increase in volume within the Industrial Solutions business unit amounted to 12 per cent, of which almost 6 per cent was organic. Operating profit improved by 22 per cent compared to last year. In relation to the comparison period, project volumes increased significantly, whereas the extent of deliveries linked to customer-specific assignments remained unchanged. The market conditions were generally viewed as favourable, although there were still fluctuations as regards incoming orders, particular in relation to project-based assignments. Extended assembly premises for automation equipment developed in-house were taken into operation in Jönköping.
The operations within the Precision Technology business unit reported 8 per cent higher sales and an operating profit that surpassed that of the comparison period by 4 per cent. The strengthening of resources through investments in production equipment and the recruitment of new personnel was successful. In combination with a favourable mix of assignments and a high level of technology, the business unit was able to report continued good profitability. Further machine capacity is continually being added, and at the same time the production areas in Västervik are being expanded. After the end of the period, Kuggteknik in Leksand was acquired as a supplement to Mikroverktyg.
The Group reported a strong first half-year, and we are also confident ahead of the autumn. Just as at the same time last year, however, some of our market segments became more cautious up to the end of the first half-year. In combination with the considerable fluctuations in incoming orders in respect of project-related volumes, future developments are difficult to judge. We are continuing to work on capacity reinforcements, both through investments in machinery and the extension of production areas as well as organisational development. At the same time, we are maintaining our focus on long-term work with selected customers and assignments, in order to achieve the best possible utilisation of resources. As a result, we judge that the conditions for stable, profitable growth will remain good.