Second quarter 2015 – Profitable growth
· Order intake rose 22% to SEK 3,026 million (2,483). The increase for
comparable units was 6%.
· Net sales rose 24% to SEK 3,025 million (2,430). The increase for comparable
units was 7%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 28% to SEK 362 million (282),
corresponding to an EBITA margin of 12.0% (11.6%).
· Profit after tax rose 32% to SEK 229 million (174).
· Earnings per share before dilution grew 32% to SEK 5.73 (4.35).
· Cash flow from operating activities was SEK 127 million (226).
CEO’s message
In a turbulent business environment, Indutrade continues to grow organically and
through acquisitions. The focus on owning and developing companies in selected
niches is a continued success concept.
With order intake and invoicing in excess of SEK 3 billion, Indutrade can once
again report a quarter with new, record highs. The organic growth within the
Group during the quarter was also particularly gratifying.
The Group’s great product breadth provides considerable variation in demand for
the respective areas. The same applies as well for the geographic
diversification. Currency movements are an additional component that affect
performance.
All of the management teams of the some 200 companies in the Group always strive
to grow and improve their profitability. It is the ability of these companies to
adapt to the prevailing market conditions at any given time that gives Indutrade
its strength.
Second quarter
During the quarter, order intake grew by 22%, invoicing by 24%, and earnings per
share by 32% compared with the same quarter a year ago. Growth is being driven
above all by completed acquisitions, but we also saw very favourable like-for
-like performance for most units during the quarter.
Overall, the Group’s business areas showed stable, positive development of order
intake, invoicing and earnings during the quarter. Engineering & Equipment, Flow
Technology and Fluids & Mechanical Solutions reported higher earnings and
improved margins compared with a year ago.
Following a weak start to the year, in which profitability was hurt by the past
year’s exchange rate movements, the EBITA margin turned upwards again for
Industrial Components during the second quarter.
Most companies in Measurement & Sensor Technology are reporting continued high
market activity and demand, at the same time that the EBITA margin was lower
during the quarter compared with a year ago due to a changed mix.
For Special Products, a combination of acquisitions and large project
deliveries, together with continued favourable performance in the UK and
Benelux, contributed to the strong earnings.
Acquisitions
Three acquisitions were carried out during the quarter, plus an additional one
after the end of the quarter. Together with the acquisitions carried out during
the first quarter, these companies represent roughly SEK 1 billion in annual
sales. Our expansion in and outside Sweden continues, both in the form of
traditional trading companies and companies with own products and manufacturing.
We expect additional acquisitions during the year.
Outlook
The turbulence in our business environment continues, resulting in volatility in
demand between products, segments and markets. The strength of our business
model is particularly apparent in a quarter such as this, where further
development of our existing companies, acquisitions and diversification of risk
offer good balance to challenges such as weak development in Finland and in
Russia, currency movements, and the decline in parts of the oil and gas segment.
I look forward to the coming quarters with confidence and have every reason to
believe that our companies will continue to adapt to the changing market
conditions in a swift and effective manner.
Johnny Alvarsson, President and CEO
For further information, please contact:
Johnny Alvarsson, President and CEO, tel: +46 70 589 17 95 or Jan Öhman, CFO,
tel: +46 70 226 75 34.
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 and a decentralised organisation characterised by an
entrepreneurial spirit.
The Group is organised into six business areas: Engineering & Equipment, Flow
Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement &
Sensor Technology and Special Products. Indutrade’s sales totalled SEK 9,746
million in 2014, generating operating income of SEK 1,134 million before
depreciation of intangible assets. Indutrade is listed on the Nasdaq Stockholm.
