THIRD QUARTER 2013
· Order intake rose 5% to SEK 6,697 million (6,406).
· Net sales rose 6% to SEK 6,479 million (6,117). For comparable units the
increase was 1%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 10% to SEK 707 million (645),
corresponding to an EBITA margin of 10.9% (10.5%).
· Profit after tax rose 9% to SEK 409 million (376).
· Earnings per share were SEK 10.23 (9.40).
· Cash flow from operating activities amounted to SEK 452 million (227). For
the last 12-month period, cash flow per share was SEK 18.60 (12.70).
THIRD QUARTER 2013
· Order intake totalled SEK 2,172 million (1,832), an increase of 19%.
· Net sales rose 8% to SEK 2,148 million (1,988). For comparable units the
increase was 2%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 15% to SEK 252 million (219),
corresponding to an EBITA margin of 11.7% (11.0%).
· Profit after tax rose 14% to SEK 145 million (127).
· Earnings per share were SEK 3.65 (3.18).
CEO’s message
Some uncertainty still remains in the market. Following recent years’ swings in
demand, everyone – customers and suppliers alike – is cautious in their future
outlook. The market continues to be weak for forest-related businesses – ranging
from the pulp and paper industry to the vehicles used to harvest and transport
timber. This is impacting our Engineering & Equipment business area in
particular. The general process industry has also had weak performance, although
here we see signs of growing activity. Thanks to Indutrade’s broad product
offering, the Group posted organic growth in order intake of 11% during the past
quarter, despite several weak segments. The segments that have had favourable
growth have more than adequately compensated for the weaker areas. This growth
is being generated by a business upswing in a number of areas as well as by
gains in market share by companies. Overall, order intake grew 19% during the
quarter, including acquisitions.
Third quarter
In the Nordic countries, the market is weak particularly in Finland and Denmark.
Sweden is experiencing more positive development, with growth in several
segments. Outside the Nordic countries, our operations in Switzerland and
Ireland continue to show strong growth. Other important countries such as
Germany, Benelux and the UK, are stable.
In general it is companies with proprietary products or brands that have had the
most positive performance of the Group’s companies. My conclusion is that the
Group’s long-term, concerted effort to increase the share of proprietary
products with an international base has enhanced growth and stability in the
Group.
Net sales during the past quarter rose 8%. Excluding completed acquisitions,
sales would have increased by 2%.
The Engineering & Equipment business area, comprising companies in Finland,
experienced continued weak development on account of Finland’s strong reliance
on the forest industry. It is positive to note that order intake increased
during the quarter.
Flow Technology had weak order intake during the period, although it improved
toward the end of the third quarter. Order intake is generally weak in the
marine sector and process industry in Sweden. Customers are keeping maintenance
and investments to a minimum. Earnings for the period decreased mainly on
account of the weak marine sector, owing in part to lower volumes, but also to
costs for creating the right long-term conditions for business in this segment.
Fluids & Mechanical Solutions had weak performance in certain segments, such as
automotive hydraulics, while it encountered a more favourable business climate
in other areas. Order intake was marginally better than invoicing. Earnings
decreased mainly for the hydraulics business.
Industrial Components experienced favourable development. Several segments are
showing growth, and owing to acquisitions, order intake grew 21% for the
business area and invoicing by 15% during the quarter. Commercial vehicles
continue to show positive development, while the medical technology segment
experienced favourable growth during the quarter. The general engineering
industry in Sweden is showing positive development. The earnings improvement for
the quarter was 34%, owing to completed acquisitions and higher earnings in the
medical technology field, among others.
Special Products continued to perform strongly. Order intake rose 55% and
invoicing by approximately 31%. The energy segment, Indutrade Switzerland and
new acquisitions made strong contributions to the 58% improvement in earnings
for the quarter.
Margins
The Group’s gross margin remains stable at 33.7%, which is level with 2012.
The EBITA margin was 11.7% (11.0%) for the quarter and 10.9% (10.5%)
accumulated, which is higher than the Group’s target of a minimum 10% EBITA
margin over a business cycle.
Acquisitions
Two acquisitions were made during the quarter, AMAB and the operations of Micro
Joining KB. After the end of the quarter, Medexa in Sweden and the Dutch company
Kin Pompentechniek were acquired. AMAB and Medexa work in the med-tech field,
Micro Joining is active in chemical technology and Kin Pompentechniek in flow
technology.
Outlook
In line with our previous expectation, we can now see signs in several – but not
all – segments, of an upswing during the autumn.
Johnny Alvarsson, President and CEO
The report will be commented upon as follows:
· through a conference call/webcast today at 2 p.m. at the following link:
http://event.onlineseminarsolutions.com/r.htm?e=697639&s=1&k=7B04F6399A17B4058A9
0
DCB18E53FC54
Partciplants call SE +46 8 505 564 83, UK +44 203 1940 546 or US + 1 8552
692 606.
· Via a videotaped version at 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 8,384 million in 2012, generating
operating income of SEK 905 million before depreciation of intangible assets.
Indutrade is listed on the Nasdaq OMX Stockholm.
