Interim report 1 January – 31 March 2019
The first quarter
» Net revenue totalled SEK 564 million (504)
» Operating profit amounted to SEK 71 million (61)
» Profit before tax amounted to SEK 67 million (56)
» Profit after tax amounted to SEK 52 million (43)
» Earnings per share were SEK 3.74 (3.11)
CEO’s comments on the Group’s development during the period
Our operations began the year in a positive manner, generally reporting both higher invoicing and stronger profitability in relation to the first quarter of last year. The market situation remained stable, while demand remained at a generally high level. Sales growth amounted to 12 per cent, of which approximately half was organic. Operating profit improved by 16 per cent and the operating margin rose from 12.1 to 12.5 per cent. The profit margin stood at 11.9 per cent.
Within the Industrial Products business unit, invoicing increased by 4 per cent, while operating profit exceeded last year’s figure by just over 7 per cent. The volumes were generally higher within affected industry segments, with the exception of parts of the automotive industry, where a slight decline was noted. Organisational development in the form of activities for increased efficiency and the optimisation of resources, both within and between the companies, was a priority, as were continued investments in product development and digital marketing.
The increase in volume within the Industrial Solutions business unit amounted to 16 per cent, of which almost 5 per cent was organic. Operating profit improved by 12 per cent compared to last year. The market situation for project-based operations was good, although drawn out decision-making processes for investments within the packaging industry entailed continued large fluctuations in respect of incoming orders and order completions. Last year’s lower project volumes provided scope for consolidation activities and the development of internal processes, which are now gradually having an impact. Within contract manufacture, several large undertakings were launched. These initially entailed increased costs, but will have a positive impact in the future.
The operations within the Precision Technology business unit reported 14 per cent higher sales and an operating profit that surpassed that of the comparison period by 18 per cent. Thanks to a long-term strategic working method, the companies generally had a favourable mix of assignments, which resulted in good capacity utilisation and were a contributory reason for the good profitability. Additional resources were supplied in the form of new recruitment and training activities, as well as investments in production technology.
We are continuing to work on our areas of focus, including product development and after-sales services. Capacity reinforcements are being implemented through the expansion of production areas and the installation of more efficient machinery, as well as through various training activities. We have a strong drive within our companies, and believe that we have considerable development potential within several areas. The market situation looks bright in the near future, and we are still of the opinion that the conditions for stable and profitable growth remain good.