Interim report 1 January – 31 March 2016

12 May 2016 13:00

 

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The first quarter
»    Net revenue totalled SEK 262 million (245)
»    Profit before tax amounted to SEK 22 million (22)
»    Profit after tax amounted to SEK 17 million (17)
»    Earnings per share were SEK 2.55 (2.50)

 

CEO’s comments on the Group’s development during the period
The Group enjoyed a good start to the year. Sales increased by 7 per cent and operating profit improved from SEK 23 million to SEK 26 million. The trend witnessed in recent quarters, with increasingly stable demand and increased order volumes in the Group’s three business units, has mainly characterised the start of the year as well, despite the fact that the market situation as a whole has been perceived as remaining slightly cautious.
     The operations within Industrial Solutions as a whole reported growth and an improved operating margin compared to the first quarter in the previous year. Most of the markets where the companies are active were stable or grew slightly, with the exception of China where the situation has remained challenging. The results for project-related sales to the packaging industry were good during the quarter, and the companies’ individual and joint efforts within product development and marketing activities have generated interesting new business.
     The companies within the Precision Technology business unit enjoyed good sales growth overall, and exceeded the operating profit in the comparison period by an impressive 56 per cent. Sales generally remained at a good, stable level during the period, and included assignments within all of the business unit’s industry segments. Capacity reinforcement was conducted through further investments in machinery, and the extension of the production premises in Västervik is in the final phase. 
     The Rotational Moulding business unit did not match last year’s strong first quarter, but showed a clear improvement in relation to the second half of 2015. Normal seasonal influences resulted in a weak start to the new year, but the end of the quarter was strong, a trend that has continued after the balance sheet date. Development projects are still prioritised within all product segments. 
     Market development for the Group as a whole is expected to remain positive in the near future. It is still considered that good opportunities exist for continuous profitable growth within all units, both through organic expansion and via complementary acquisitions. The development activities regarding the proprietary product ranges are continuing at the same level of intensity. Further resources are also being provided to the sales organisations, in order to strengthen the Group’s position both in Sweden and on other selected markets.

 

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