Bulten’s Q3 report 2014

2014-10-23Press release

Continued very strong organic growth

THIRD QUARTER

  • Net sales reached SEK 593 million (436), up 36.2% on the same period last year.
  • Earnings (EBIT) were SEK 25 million (20), which corresponds to an operating margin of 4.2% (4.5).
  • Adjusted for the SEK 11 million insurance compensation, the operating profit was SEK 14 million (20).
  • Earnings (EBIT) were negatively affected by establishment and start-up costs and by currency effects in total of SEK -14 million.
  • Profit after tax was SEK 17 million (13) and SEK 8 million (13) when adjusted for non-recurring items for insurace compensation.
  • Order bookings amounted to SEK 571 million (446), up 27.9% on the same period last year.
  • Cash flow from current activities was SEK -37 million (28), driven by strong expansion and the build-up of working capital.
  • Earnings per share, continuing operations were SEK 0.89 (0.60). Adjusted earnings per share were SEK 0.48 (0.60).
  • The change of name from FinnvedenBulten AB to Bulten AB came into effect on 1 September 2014.

JANUARY–SEPTEMBER

  • Net sales reached SEK 1,793 million (1,334), up 34.4% on the same period last year.
  • Earnings (EBIT) reached SEK 95 million (79), which corresponds to an operating margin of 5.3% (5.9).
  • Adjusted for the SEK 11 million insurance compensation, the operating profit was SEK 84 million (79).
  • Earnings (EBIT) were negatively affected by establishment and start-up costs and by currency effects in total of SEK -26 million.
  • Profit after tax was SEK 66 million (78). Adjusted for non-recurring items, insurance compensation, profit after tax was SEK 57 million (51). Previous year’s profit after tax was adjusted for non-recurring items relating to a tax receivable for an interest deduction in accordance with the verdict of the Administrative Court of Appeal.
  • Order bookings amounted to SEK 1,851 million (1,397), up 32.5% on the same period last year.
  • Cash flow from current activities was SEK -122 million (96), driven by strong expansion and the build-up of working capital.
  • Net cash was SEK 79 (-235). The equity/assets ratio was 67.9% at the end of the period.
  • Earnings per share in continuing operations were SEK 3.28 (3.70). Adjusted for non-recurring items earnings per share were SEK 2.87 (2.42).
  • The Finnveden Metal Structures division was sold to Shiloh Industries Inc. USA, effective 30 June 2014. Profit after tax from divested business was SEK 85 million (-18) and this includes consolidated capital gains of SEK 54 million from the sale.
  • The change of name from FinnvedenBulten AB to Bulten AB came into effect on 1 September 2014.

IMPORTANT EVENTS AFTER THE END OF THE REPORTING PERIOD

  • Bulten received additional volumes from an existing customer worth an annual sum of approximately SEK 150 million at full production in 2016.


“Bulten has continued its fast growth and gained market shares in Q3 with a sales increase of 36%. In a short time we have successfully managed to handle a significant volume increase in primarily Full Service Provider (FSP) business with highly satisfied customers and increased confidence in Bulten within the international automotive industry as a result.

Earnings during the quarter were negatively affected by establishment and start-up costs, currency development and also by the fact that Q3 in general contains fewer production days. Highest priority has been to provide high delivery precision and quality. A major focus is now being placed on commercial optimisation of both of the new FSP contracts, which will give a successive improvement in margins and is part of our plan to achieve an operating margin of 7%.

We continue to strengthen our position as a systems supplier and after the end of the period we have received additional volumes from an existing customer worth approximately SEK 150 million annually at full production in 2016. Production start is expected in Q4 and volumes will then increase gradually in 2015 and 2016.

At the end of September production started at our Russian business, initially at a limited level but with gradual increases in volumes planned. The geopolitical situation continues to be uncertain but has not changed our plans to establish our business in Russia and the interest from customers remains very high.

In summary, we see good opportunities for growth with new and existing contracts and Bulten is positioned as a fast-growing company with an increasingly global presence.”

Tommy Andersson, President and CEO

Investors, analysts and media are invited to participate in the teleconference on October 23 at 15:30 CET when the report will be presented by Bulten’s President and CEO Tommy Andersson and the company’s EVP 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: 335670#.

Copies of the presentation will be available at www.bulten.com at approximately 30 minutes before start. The full report is attached to this press release.

A replay of the telephone conference is available until November 6, 2014 on the phone numbers Sweden +46 8-505 564 73, UK +44 203 364 5200, USA +1 877 679 2989. Code: 353742#.

For further information, please contact:

Tommy Andersson, President and CEO
Tel: + 46 31-734 59 00

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

Bulten discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13:30 CET on October 23, 2014.

Bulten is one of the leading suppliers of fasteners to the European automotive industry. The company’s product range includes everything from customer-specific standard products to specialist, customized fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. Bulten AB (publ):s share is listed on Nasdaq Stockholm. Read more at www.bulten.com.

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