FinnvedenBulten’s Q1 report 2014

2014-04-29Press release

Press release, Gothenburg, 29 April 2014 Strong organic growth and substantially improved earnings. Restructuring of the foundry operation completed

FIRST QUARTER

  • Net sales reached SEK 906 million (708), up 28.1% on the same period last year.
  • Earnings (EBIT) adjusted for non-recurring items were SEK 46 million (19), which corresponds to an adjusted operating margin of 5.1% (2.7).
  • Earnings (EBIT) reached SEK 63 million (19), which corresponds to an operating margin of 7.0% (2.7).
  • Profit after tax was SEK 44 million (6) and SEK 30 million (6) when adjusted for non-recurring items related to restructuring of the foundry business.
  • Order bookings amounted to SEK 963 million (820), up 17.5% on the same period last year.
  • Cash flow from current activities was SEK -30 million (51), mainly attributable to the major expansion of division Bulten.
  • Earnings per share were SEK 2.10 (0.28). Adjusted for non-recurring items, earnings per share were SEK 1.46 (0.28).
  • The Swedish aluminium business within the Finnveden Metal Structures division has been sold.

“Our positive sales trend, order bookings and earnings continued at the start of the year. During the quarter we focused on the start up of the new, major FSP contracts in the Bulten division. The division has extensive experience of starting and running FSP contracts and the phasing in of the first contract has gone well and according to plan. Another significant contract will start in Q2 and full volumes for both contracts are expected in 2015. Start up costs related to the new business amounted to approximately SEK 7 million during the quarter. We have finalized the restructuring of the casting business in the Finnveden Metal Structures division. All magnesium casting has been consolidated to Poland and the aluminium foundry business has now been divested, which also provided positive results over the quarter. The profitability of Finnveden Metal Structures has been strengthened thanks to increased volumes and rationalization measures carried out.

The work with evaluating a split of the Group in 2014 has been intensified. The Board and the management team are favourable to dividing the business and expect this to improve the divisions’ future opportunities and provide shareholders with added value over time.”

Johan Westman, President and CEO

Investors, analysts and media are invited to participate in the teleconference on April 29 at 14:30 CET when the report will be presented by FinnvedenBulten’s President and CEO Johan Westman. Additional participants from the company are Executive Vice President Tommy Andersson and CFO Helena Wennerström.

To participate, please call 5 minutes before the opening of the conference call to
Sweden +46 8 506 443 86, UK +44 207 153 9154, US +1 877 423 0830. Code: 147938#.

Copies of the presentation will be available at www.finnvedenbulten.com at approximately 30 minutes before start.

A replay of the telephone conference is available until May 13, 2014 on the phone numbers Sweden +46 8-505 564 73, UK +44 203 364 5200, USA +1 877 679 2989. Code: 351119#.

The full report is attached to this press release.

For further information, please contact:

Johan Westman, President and CEO
Tel: + 46 31-734 59 00

Kamilla Oresvärd, Vice President Corporate Communications
Tel: +46 70-520 59 17, e-mail: kamilla.oresvard@finnvedenbulten.com

NB: The information in this announcement is required to be disclosed by FinnvedenBulten AB (publ) under the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13:30 CET on April 29, 2014.

FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Bulten and Finnveden Metal Structures – both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com.

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