Interim report 1 January-30 September 2012

2012-11-05

1 JANUARY – 30 SEPTEMBER 2012

  • Net sales rose 5% to SEK 6,117 million (5,836). The increase for comparable units was 2%.
  • Operating profit before amortisation of intangible non-current assets attributable to acquisitions (EBITA) decreased by 3% to SEK 645 million (666), and the EBITA margin was 10.5% (11.4%).
  • Profit after tax decreased by 2% to SEK 376 million (385).
  • Earnings per share were SEK 9.40 (9.63). 

THIRD QUARTER 2012

  • Net sales decreased by 1% during the third quarter to SEK 1,988 million (2,005). For comparable units sales decreased by 2%.
  • Operating profit before amortisation of intangible non-current assets attributable to acquisitions (EBITA) decreased by 11% to SEK 219 million (245), and the EBITA margin was 11.0% (12.2%).
  • Profit after tax was SEK 127 million (145).
  • Earnings per share were SEK 3.18 (3.63).

CEO'S MESSAGE

The market climate continues to be characterised by great uncertainty, and order intake is varying widely from month to month. In general we are seeing a slowdown in most market segments, although there are positive exceptions to the general trend. One such area is the international energy sector, which is continuing at a high level. Another is the group of companies we acquired in Switzerland in early 2011, which are continuing their positive development.

Third quarter
Order intake during the quarter totalled SEK 1,832 million (2,008). Adjusted for currency movements, this corresponds to a decrease of 4%. Of our business areas, only Industrial Components achieved higher order intake than the corresponding period a year ago. The increase is attributable to contributions from acquisitions and only limited negative exchange rate effects. 

Sales for the quarter totalled SEK 1,988 million (2,005). Adjusted for currency movements, invoicing was marginally higher than the same period in 2011. The strong Swedish krona had a tangibly negative effect on consolidated sales and profit for the quarter. 

The Engineering & Equipment business area, which has its markets in Finland and the Baltic countries, is encountering a continued weakened business climate. Despite lower volume than a year ago, earnings were slightly improved as a result of acquisitions. 

Flow Technology is showing a decline in volume due to the weak marine sector and fewer international projects during the quarter. The volume decline, combined with a lower gross margin and certain cost increases, has led to a drop in earnings for the business area compared with a year ago. 

For Industrial Components, order intake and sales were level with the preceding year. Acquired companies with good profitability and good cost control are contributing to slightly better earnings compared with a year ago. 

In the Group's largest business area, Special Products, the energy sector continues to perform strongly. Most of the other companies in the business area are noting weaker demand in essentially all markets. During the period, deliveries began for parts of the large energy projects. Business in Switzerland is showing favourable earnings performance. 

Margin
The accumulated gross margin of 33.7% is slightly lower than in 2011. The EBITA margin was 10.5% (11.4%). The lower margin is attributable to weak development in the Flow Technology business area and the generally weaker market trend. 

Acquisitions
Two acquisitions were carried out during the quarter in Sweden: Hydnet AB and Euroflon Tekniska Produkter AB. After the end of the quarter, the company Krämer AG was acquired in Switzerland, with possession taking place in October. In all, ten companies with combined annual sales of approximately SEK 570 million have been acquired during the year. 

Johnny Alvarsson, President and CEO

The report will be commented upon as follows:

  • through a conference call/webcast today at 2 p.m. at the following link:
    https://www.anywhereconference.com/?Conference=108275811&PIN=538855
    Participants call SE +46 (08) 505 598 12, UK +44 (0) 207 108 6303 or US +1 866 676 5869.
  • Via a videotaped version at the following links:
    http://www.indutrade.se
    http://www.playontv.se

For further information, please contact:
Johnny Alvarsson, President and CEO, tel: +46 70 589 17 95.

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