Interim report January - June 2016: Operating profit goes positive, IDC recovers

SECOND QUARTER

  · Order intake of 280.2 MSEK (337.0*).
  · Net sales were 283.3 MSEK (367.5*).
  · Operating profit 4.2 MSEK (24.2).
  · Profit/loss after tax was -2.8 MSEK (12.9).
  · Earnings per share were -0.14 SEK (0.67).


FIRST HALF-YEAR

  · Order intake of 545.1 MSEK (680.4*).
  · Net sales were 563.8 MSEK (719.3*).
  · Operating profit -51.3 MSEK (50.9). Profit was charged with non-recurring
expenses of 50 MSEK (0).
  · Profit/loss after tax was -44.7 MSEK (28.0).
  · Earnings per share were -2.33 SEK (1.48).


*Includes distributor volumes that have been discontinued.


COMMENTS FROM PRESIDENT AND CEO PER SAMUELSSON

“Beijer Electronics recovered in the second quarter and we are heading in the
right direction. After the two quarters of operating losses, in the second
quarter, operating profit moved into the black. The recovery has been gradual.
After a poor start, the period finished really well.

The IDC business area’s order intake recovered well after a weak first quarter.
In the second quarter, order intake was up by 23% on the first quarter, and by
11% on the corresponding period of 2015. But sales were down on the second
quarter 2015, which did include several major project shipments. Westermo, and
Korenix especially, reported increased sales quarter on quarter.

Meanwhile, IDC’s profitability level is too low due to major initiatives, mainly
in Westermo. We are now putting more emphasis on growth with higher
profitability. Accordingly, Westermo has adapted its planned cost increases to
sales. We expect to be able to manage rising volumes with our existing
organization.

Within the IAS business area, our programs of measures had the main positive
effect, with significantly lower overheads resulting. Gross margin also
improved. Sales remained at a low level, but excluding Mitsubishi Electric
products, sales stabilized, and were unchanged in the first half-year compared
to the second half-year 2015.

IAS is launching a new product range in the fall, the X2 series. Over a 12-month
period, IAS will progressively introduce hardware and software for this new
series, for all the business area’s different panels. This is expected to have a
positive impact on sales late in the year. Overall, we expect sales to recover
again in the second half-year.

IAS’s new organizational structure was implemented in the quarter, which in
practice will mean a more customeroriented approach, with more staff such as
management and development personnel being involved in the sales process, as
well as sales and account managers. We also altered our marketing by launching a
joint brand, X2, which links to our full range of panels and iX software to
create a superior customer offering. Additionally, our programs of measures are
progressing as planned.

We expect the group’s operating profit to be somewhat better in the second half
-year 2016 than the corresponding period of 2015. But this will not fully offset
the poor number in the first half-year. Accordingly, we anticipate the group’s
operating profit for the full year 2016 being below our previous estimate of
somewhat better operating profit excluding non-recurring expenses.”

INVITATION TO CONFERENCE CALL

Today, a conference call will be held for press and analysts, where President
and CEO Per Samuelsson and CFO Joakim Laurén present the company and comment on
the report.

Time:      Thursday July 14, at 2.00 p.m. CET

To participate in the conference please dial:

From Sweden: +46856642694
From UK: +44 2030089804

To access the presentation please use this link:
http://www.anywhereconference.com?UserAudioMode=DATA&Name=&Conference=131674057&
P 
IN=86722012

The report and the presentation will be available at Beijer Electronics’ website
www.beijerelectronics.com/ir. A recording of the conference call will also be
available here after the event.

Welcome!




For more information please contact:

President and CEO, Per Samuelsson, tel +46 (0)40 35 86 10, mobile +46 (0)708 58
54 40
CFO Joakim Laurén, tel +46 (0)40 35 84 96, mobile +46 (0)703 35 84 96.

This information is such that Beijer Electronics AB (publ) is required to
disclose in accordance  with the Swedish Financial Instruments Trading Act
and/or the Swedish Securities Market Act. The information was submitted for
publication by Annika Johnsson at 13:00 CET, July 14, 2016.


Beijer Electronics is a fast growing technology company with extensive
experience of industrial automation and data communication. The company develops
and markets competitive products and solutions that focus on the user. Since its
start-up in 1981, Beijer Electronics has evolved into a multinational group with
sales of 1,375 MSEK 2015. The company is listed on the NASDAQ OMX Nordic
Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.com