Bulten's Q3 report 2018

2018-10-25Pressnyhet

Bulten grows on a volatile market.

THIRD QUARTER              

  • Net sales amounted to SEK 722 (630) million, an increase of 14.5% on the same period last year.
  • Operating earnings (EBIT) totaled SEK 38 (35) million, equating to an operating margin of 5.2% (5.5).
  • Earnings after tax amounted to SEK 25 (22) million.
  • Order bookings amounted to SEK 723 (691) million, an increase of 4.7% on the same period last year.
  • Cash flow from operating activities totaled SEK -15 (21) million.
  • Earnings per share were SEK 1.26 (1.11).

JANUARY– SEPTEMBER

  • Net sales amounted to SEK 2,385 (2,116) million, an increase of 12.7% on the same period last year.
  • Operating earnings (EBIT) totaled SEK 162 (155) million, equating to an operating margin of 6.8% (7.3).
  • Earnings after tax amounted to SEK 113 (112) million.
  • Order bookings amounted to SEK 2,357 (2,176) million, an increase of 8.3% on the same period last year.
  • Cash flow from operating activities totaled SEK 65 (56) million.
  • Earnings per share were SEK 5.69 (5.71).
  • Net debt amounted to MSEK 164 (13) million and the equity/assets ratio was 65.1% (68.6) at the end of the period.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

  • Bulten has signed a Full Service Provider (FSP) contract for electric vehicle drive technologies, initially worth in the region of EUR 2 million a year. The deliveries span seven years and are expected to begin at the end of 2020, gradually increasing to full capacity in 2021.

  • Bulten has decided to relocate its operation in China from Beijing to Tianjin with the aim to expand in the local Chinese market. The relocation includes an investment of approximately SEK 25 million and the cost is estimated to amount to 16-20 MSEK distributed over the moving period, the main part in 20

CEO’S COMMENTS

“Continued strong growth during the third quarter, with an increase in net sales of 14.5%, adjusted for currency 5.8%. The organic growth is primarily driven by new contracts which is now in production. We are therefore continuing to take shares on a market characterized by temporarily higher volatility in demand for cars during the quarter, which is largely an effect of new environmental tax regulations in several European countries.

Order bookings increased 4.7% on the same quarter last year when orders were also strong, primarily due to the start-up of a new contract, and model shifts.

Operating earnings were on a par with last year, with a slight fall in operating margin. The lower operating margin is primarily attributable to negative exchange rate fluctuations, as well as an imbalance in production due to market volatility. Furthermore, global market prices for raw materials for fasteners have risen continually since the first quarter of 2017. No increases have been announced for the fourth quarter.

Our financial position remains strong and we are continuing to develop the business to secure anticipated growth based on contracts already won. During October, we decided to relocate our operation in China from Beijing to Tianjin in order to expand on the local market, where we are seeing a considerably rise in volumes and growth opportunities for Bulten, from a previously quite low level.

Demand for hybrids and electric cars is increasing, a favorable development for Bulten since the value of fasteners is currently far higher in these vehicles compared to ones with conventional combustion engines. Also in October we signed a new FSP contract for an electric vehicle drive technology driveline, clear confirmation that we are on the leading edge when it comes to technology for electrification.”

Tommy Andersson, President and CEO

Investors, analysts and media are invited to participate in the tele­conference on October 25 at 15:30 CET. The report will be presented by Tommy Andersson, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q3-2018. It will also be possible to access the audiocast afterwards at the same address or via www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

SE : +46 856642669
UK : +44 2030089807
US: +1 8558315944

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.

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

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the Senior Vice President Corporate Communications set out above, at 13:30 CET on October 25, 2018.

Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and its head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.se.

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