1 JANUARY - 30 SEPTEMBER 2010
• Net sales for the period rose 5%, to SEK 4,981 million (4,746). For
comparable units net sales were at an unchanged level compared with a year ago.
• Operating profit before amortisation of intangible assets (EBITA) rose 19% to
SEK 540 (452) and the EBITA-margin was 10.8% (9.5%).
• Profit after tax rose 25% to SEK 318 million (255).
• Earnings per share were SEK 7.98 (6.38) for the period.
THIRD QUARTER 2010
• Net sales rose 21% during the third quarter, to SEK 1,732 million (1,426).
For comparable units the increase was 13%.
• Operating profit before amortisation of intangible assets (EBITA) rose 38% to
SEK 205 million (149) and the EBITA-margin was 11.8% (10.4%).
• Profit after tax rose 39% to SEK 117 million (84).
• Earnings per share were SEK 2.95 (2.10) for the quarter.
CEO's message
Continued improved market climate
The Group's order intake for comparable units has now risen for two consecutive
quarters. The business rebound came toward the end of the first quarter of
2010, and since then the general perception is that the recovery is gradually
growing stronger and broader. Compared with the third quarter of 2009, order
intake was up 21% overall and 15% for comparable units, which is the strongest
growth we've seen since the third quarter of 2008. All business areas posted
higher order intake for comparable units during the quarter than the same
quarter a year ago.
It is pleasing to note that the trend from the end of the second quarter for
the Engineering & Equipment business area is sustaining, with a continued rise
in order intake driven by a recovery in the Finnish export industry.
The Industrial Components business area showed a further strengthening in
performance during the quarter, with a 38% rise in invoicing. The Flow
Technology business area, which was affected only to a limited degree by the
general economic downturn in 2009, has had continued favourable growth in
invoicing. In the Special Products business area, acquisitions along with
organic growth generated a 42% rise in invoicing during the quarter.
Signals from the markets in which the Group is active continue to be positive,
and at present we do not see any signs of a weakening. In most segments we are
experiencing strong markets. The exceptions are investments in energy and
marine newbuilding, where demand is still at a lower level than previously.
Earnings
The Group has demonstrated its strength once again through a very favourable
gross margin, which improved further during the quarter. The EBITA margin was
11.8% for the quarter and 10.8% accumulated, which is higher than the Group's
long-term target of a minimum of 10%.
Acquisitions
During the quarter we acquired Meson Group, which supplies valves under its own
brand primarily for marine applications.
The long-term work on developing the Indutrade Group in accordance with our
growth targets continues with undiminished strength.
Johnny Alvarsson, President and CEO
