Interim report 1 January – 30 September 2017

1 November 2017 13:00

 

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The interim period
»    Net revenue totalled SEK 1,231 million (783)
»    Operating profit amounted to SEK 166 million (86)
»    Profit before tax amounted to SEK 150 million (79)
»    Profit after tax amounted to SEK 116 million (61)
»    Earnings per share were SEK 8.37 (4.43)

The third quarter
»    Net revenue totalled SEK 378 million (226)
»    Operating profit amounted to SEK 52 million (24)
»    Profit before tax amounted to SEK 50 million (21)
»    Profit after tax amounted to SEK 39 million (16)
»    Earnings per share were SEK 2.76 (1.16)

Important events
»    A 2:1 share split was carried out in June

 

CEO’s comments on the Group’s development during the period
The Group enjoyed a strong third quarter with high growth and an operating profit more than double the figure achieved in the corresponding period last year. The market conditions were generally good, which contributed to incoming orders also being satisfactory during the quarter. For the entire nine-month period, the Group reported a growth in sales of 57 per cent, of which Jorgensen contributed 40 per cent, and an operating profit which exceeded that achieved last year by 93 per cent. The profit margin increased from 10.0 to 12.2 per cent, while earnings per share rose from SEK 4.43 to SEK 8.37. 
       During the first nine months of the year, the Industrial Solutions business unit almost doubled its sales compared to the comparison period. This increase can primarily be attributed to the acquisition of Jorgensen, although organic growth was also good. The improvement in operating profit was even more marked. Jorgensen made a significant contribution here too, and other companies in the business unit continued to perform well. The extent of completed project deliveries to the packaging sector was significantly higher than last year, and incoming orders in respect of new projects remained good. In order to safeguard capacity, preparations are currently being made to strengthen resources, including by expanding production areas.
       The companies in the Precision Technology business unit reported an overall increase in volume and significantly improved profitability compared to the first nine months of last year. This positive outcome has been able to be achieved thanks to successfully implemented marketing initiatives and strategic, capacity-boosting investments, activities that remain high priorities within the business unit. At the same time, the economic situation has been stable and positive for an extended period. There have been no major changes in recent times, even though the conditions vary somewhat between the industry sectors.
       Operations within the Rotational Moulding business unit, despite the restraint demonstrated within individual market segments, were able to report slightly higher invoicing than during the comparison period. After a certain decline in incoming orders during late summer, sales increased once more towards the end of the period, and the situation is now more favourable than at the same time last year. Marketing activities within prioritised areas, as well as the supplementing of the proprietary product ranges, are the focus for the immediate future.
       Ahead of the final quarter of the year, the Group as a whole is enjoying a better market and order situation than at the corresponding time last year. Just as prior to the third quarter of the year, this relates in particular to project-related operations for the packaging industry, although the market trend is expected to remain mostly positive for the immediate future within all the Group’s industry sectors.

 

  CONTACT:  
Lennart Persson, CEO
+46 36 31 22 33
lennart.persson[at]xano.se