Continued good growth
Second quarter 2014
* Net sales increased by 8.4 percent to SEK 579 million (534). Adjusted for
currency effects, net sales increased by 6.4 percent. The increase is
attributable to higher market shares for segment International and to higher
underlying demand.
* Operating profit increased to SEK 60 million (58).
* Operating margin amounted to 10.3 per cent (10.8). The operating margin was
strengthened by higher net sales and gross profit but was burdened by
investments within the sales organization.
January - June 2014
* Net sales for the six months period increased by 9.9 percent to SEK 1,131
million (1,029). Adjusted for currency effects, the net sales increased by
8.4 percent.
* Adjusted operating profit increased to SEK 111 million (98), corresponding
to an adjusted operating margin of 9.9 percent (9.5).
GROUP IN BRIEF
12 month
Quarter 2 D Jan-Jun D rolling Full year D
-------------------------------------------------------
SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %
--------------------------------------------------------------------------------
Order intake 565 530 6.5 1,128 1,050 7.4 2,150 2,072 3.7
--------------------------------------------------------------------------------
Net sales 579 534 8.4 1,131 1,029 9.9 2,132 2,031 5.0
--------------------------------------------------------------------------------
Gross profit 177 162 9.3 339 304 11.7 632 596 6.0
--------------------------------------------------------------------------------
Gross margin, % 30.5 30.3 30.0 29.5 29.6 29.3
--------------------------------------------------------------------------------
Operating profit 60 58 3.7 93 98 -5.2 196 201 -2.6
--------------------------------------------------------------------------------
Operating margin, % 10.3 10.8 8.2 9.5 9.2 9.9
--------------------------------------------------------------------------------
Adjusted operating profit 60 58 3.7 111 98 13.6 216 203 6.6
--------------------------------------------------------------------------------
Adjusted operating 10.3 10.8 9.9 9.5 10.1 10.0
margin, %
--------------------------------------------------------------------------------
Profit after tax 44 40 8.4 61 63 -3.0 129 131 -1.5
--------------------------------------------------------------------------------
Earnings per share 1.16 1.07 8.4 1.61 1.66 -3.0 3.38 3.43 -1.5
--------------------------------------------------------------------------------
CEO'S OVERVIEW
During the second quarter, Bufab's order intake, net sales and operating profit
increased. The primary reasons for the positive trend were that the market
shares rose while the underlying demand also increased. However, it should be
noted that the underlying demand for 2013 was weak, especially during the first
quarter but increased successively during the remainder of 2013.
It is gratifying that we continue to increase our market shares. According to
our assessment, this is a direct result of our growth strategy and our
investments in the sales organisation. The growth rate is higher for segment
International than for segment Sweden due to a slightly weaker demand in Sweden
and the relocation of sales from segment Sweden to segment International due to
customers' production relocation.
Our continued investment in growth during the year has resulted in higher
selling costs than in 2013. This is in line with our strategy. However, taking
into account the economic trend that is difficult to assess, in the near future,
we will become more restrained in further expanding the sales organisation.
Improved efficiency is the second pillar of our strategy. During the first half
of the year, we succeeded in initiatives, which resulted mainly in reduced
purchase prices and lower costs in the logistics chain. The results of these
initiatives are visible in a higher gross margin. Work on further efficiency
improvements is ongoing.
The third pillar of the strategy is value-creating acquisitions. The evaluation
of potential acquisition opportunities is a continuous activity, with a focus on
acquisition candidates with growth synergies.
In general, we are confident in our strategy and its results. The underlying
demand is currently difficult to assess. However, we see good opportunities to
continue to capture market shares. This, combined with continuing stable order
intake, means that we have good confidence for the rest of the year.
Jörgen Rosengren, President and CEO
CONFERENCE CALL
A conference call will be held on August 13, 2014 at 10.00 CET. Jörgen
Rosengren, President & CEO and Thomas Ekström, CFO will present the result. The
call will be held in English.
In order to participate, please use one of the following numbers; +44 (0)
1452 555566, UK 08444933800, Luxembourg 20880695, Sweden 0850336434 or US
16315107498. Conference code, 70034626.
Please dial in 5-10 minutes ahead in order to register.
This information is in accordance with the Swedish Securities Market Act, the
Swedish Financial Instruments Trading Act and/or the regulations of NASDAQ OMX
Stockholm. The information was submitted for publication at August 13, 2014 at
08.00.
CONTACT
Jörgen Rosengren Thomas Ekström
CEO CFO
+46 370 69 69 01 +46 370 69 94 01
jorgen.rosengren@bufab.com thomas.ekstrom@bufab.com
Boel Sundvall
Communications & IR
+46 370 69 69 61
boel.sundvall@bufab.com
ABOUT BUFAB
Bufab Holding AB (publ), Corporate Registration Number 556685-6240, is a trading
company that offers its customers a full-service solution as Supply Chain
Partner for sourcing, quality control and logistics for C-Parts (screws, nuts,
etc.). Bufab's Global Parts ProductivityTM customer offering aims to improve
productivity in customers' value chain for C-Parts.
Bufab was founded in 1977 in Småland and is an international company with
operations in 23 countries. The head office is located in Värnamo, Sweden and
Bufab has about 800 employees. Bufab's sales for 2013 amounted to SEK 2,031
million and operating profit was SEK 201 million. The Bufab share is listed on
NASDAQ OMX Stockholm, under the ticker "BUFAB."
[HUG#1848431]
