CONTINUED GROWTH
· Order intake rose 19% to SEK 2,588 million (2,172). For comparable units,
order intake increased by 5%.
· Net sales rose 12% to SEK 2,412 million (2,148). For comparable units the
change was marginal.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 17% to SEK 294 million (252),
corresponding to an EBITA margin of 12.2% (11.7%).
· Profit after tax rose 26% to SEK 183 million (145).
· Earnings per share grew 26% to SEK 4.60 (3.65).
· Cash flow from operating activities amounted to SEK 210 million (158).
CEO’s message
For the third quarter Indutrade is reporting order intake, invoicing and
earnings at new top levels so far. We can thereby summarise a quarter that is
well within the framework of our overarching financial targets for growth,
profitability and the debt/equity ratio.
The cautious optimism that prevailed in the market earlier in the year has given
way to worries about future development. Despite this, Indutrade increased both
its order intake and invoicing. Growth is partly organic, but above all it has
been achieved through successful acquisitions.
In the current market situation, with low GDP growth in most European countries,
the challenge for many industrial companies including Indutrade is to grow
organically. Indutrade, whose companies are small, flexible and close to
customers, can act quickly and adapt to prevailing demand. Despite a weak
market, Indutrade has a number of companies with good organic growth in areas
such as fasteners, valves and ice detectors. At the same time, we have companies
with large market shares in their respective niches, that have a hard time
growing without infringing upon their margins, as well as companies for which
structural changes are leading to contracting markets. In these companies we are
adapting our costs to the market situation. This applies, among others, to
several operations in the Engineering & Equipment business area, which conducts
most of its business in Finland.
This mix of companies, markets and product segments is the foundation of the
Indutrade Group’s stability and growth. The Group’s business model, which calls
for a number of acquisitions each year, puts us in a good position to achieve
our profitability and growth targets even in tough times.
Third quarter
During the third quarter, order intake rose 19%, sales increased by 12%, and
earnings per share grew by 26%.
The quarter had many positive aspects. In the Engineering & Equipment business
area the profit margin improved, despite a weak market. Another example can be
seen in the strong earnings generated by all of the acquisitions during the
year. In addition, companies in the energy segment, which started out the year
with weak order intake during the first quarter, had good order intake during
the second quarter and has now succeeded in landing record high orders during
the third quarter.
Acquisitions
Two acquisitions were carried out during the quarter – one in the UK and one in
Sweden. After the end of the quarter, another two acquisitions were carried out
in Sweden. Combined annual sales of companies acquired through the end of the
third quarter amount to nearly SEK 440 million.
Outlook
Uncertainty is generally high in the market, but for Indutrade the trend has
been positive in 2014, and I believe that this trend will continue during the
final quarter of the year.
Johnny Alvarsson, President and CEO
This report will be commented upon as follows:
· Through a conference call/webcast today at 3 p.m. (CET) under the following
link:
http://event.onlineseminarsolutions.com/r.htm?e=862057&s=1&k=4E4477E9EFD95445168
8
FD7E0C726896
To participate, call SE: +46 851999030, UK: +44 2076602077 or US: +18777889023
· Through a videotaped version available under the following link:
http://www.indutrade.se
For further information, please contact: Johnny Alvarsson, President and CEO: 46
70 589 17 95
About Indutrade
Indutrade markets and sells components, systems and services with a high-tech
content within selected niches. Indutrade's business is distinguished by
- high-tech products for recurring needs
- growth through a structured and tried-and tested acquisition strategy
- a decentralised organisation characterised by an entrepreneurial spirit.
The Group is organised into five business areas: Engineering & Equipment, Flow
Technology, Fluids & Mechanical Solutions, Industrial Components and Special
Products. Indutrade's sales totalled SEK 8,831 million in 2013, generating
operating income of SEK 990 million before depreciation of intangible assets.
Indutrade is listed on the Nasdaq OMX Stockholm.
