Interim report 1 January – 31 March 2017

10 May 2017 13:00

 

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The first quarter
»    Net revenue totalled SEK 410 million (262)
»    Profit before tax amounted to SEK 48 million (22)
»    Profit after tax amounted to SEK 37 million (17)
»    Earnings per share were SEK 5.35 (2.55)

 

CEO’s comments on the Group’s development during the period
After the positive end of 2016, characterised by an upward market trend and a favourable order situation, there was every reason for the Group to enter the new year with considerable confidence. The results from operations during the first quarter were also very strong. All business units reported growth with improved margins. For the Group as a whole, operating profit more than doubled in relation to the comparison period, while the profit margin rose from 8.5 to 11.7 per cent.
     Within the Industrial Solutions business unit, the operations experienced a generally positive business climate. The newly acquired company Jorgensen contributed good sales and good profit figures, while other companies achieved better figures than during the comparison period. Assignments for major contract customers increased in volume. At the same time, the extent of deliveries within the project-related automation operation varied somewhat between customer segments, yet still achieved a good level. Sales of the proprietary products that are primarily targeted at furniture and interior manufacturers, increased further and also made a healthy contribution to profits.
     The companies within the Precision Technology business unit also reported strong results. Implemented investments have entailed increased production capacity and a higher technical level. Combined with focused sales efforts, the companies, in addition to increased sales, have hereby also achieved a greater spread, both in terms of sectors as well as geographically with regard to customer assignments. The majority of the growth in volume during the period related to the medical technology sector, where many customers postponed their orders in the previous year. 
     The positive trend from the previous year also continued for the Rotational Moulding business unit, with generally higher volumes and improved profitability. The positive development during the period was attributable to both customer specific and proprietary products, and encompassed the majority of the business unit’s industry segments. Several new products were presented and the level of activity in respect of further supplementing the proprietary product programmes remained high. 
     In the near future, the market conditions for the Group’s operations are expected to remain good. A mix comprising an influx of both new customers as well as new projects with existing customers, in addition to a general improvement in the economic situation, has entailed a generally good level of incoming orders during the start of the year. The positive sales trend relates in particular to project-related operations, where the assignments that were postponed last year are now gradually getting under way. The Group’s operations are continuing to focus on profitable growth, as well as on development activities linked to our proprietary product ranges and further reinforcement of sales resources.

 

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