Continued positive development for Indutrade
· Order intake rose 12% to SEK 2,901 million (2,588). For comparable units,
order intake decreased by 2%.
· Net sales rose 26% to SEK 3,036 million (2,412). The increase for comparable
units was 10%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 32% to SEK 387 million (294),
corresponding to an EBITA margin of 12.7% (12.2%).
· Profit after tax rose 32% to SEK 242 million (183).
· Earnings per share grew 32% to SEK 6.05 (4.60).
· Cash flow from operating activities was SEK 356 million (210).
CEO's message
In a turbulent business environment, Indutrade continues to grow organically and
through acquisitions. The focus on owning and developing companies in selected
niches remains a continued success concept for 37 years running.
Indutrade can once again report a quarter of record highs, with positive
development of order intake, invoicing and earnings.
Continued favourable order intake during the quarter, together with a high order
book, also gives us a good base for the future.
In the current market situation, distinguished by a turbulent business
environment and weak GDP growth in certain regions, Indutrade can manage these
changes in a swift and effective manner through its product breadth and the
geographic diversification provided by our 200 companies.
Profitable growth is a central concept in our financial governance. If a
particular company’s market position makes it difficult to grow organically
without losing margins, then the profit margin is prioritised over growth. This
helps us formulate simple and clear guidelines for how the respective companies
are to act based on their unique positions.
Third quarter
During the third quarter, order intake grew by 12%, invoicing by 26%, and
earnings per share by 32%. Owing to continued strong order intake for valves for
power generation in the energy segment, the order book is at a high level. The
timing of orders can vary between months and quarters, and thus when making year
-on-year comparisons, the extraordinary high order intake in the same segment
that was reported during the third quarter of 2014 should be kept in mind.
Overall, the companies in our business areas showed stable, positive development
of order intake, invoicing and earnings during the quarter.
Engineering & Equipment, Flow Technology, Fluids & Mechanical Solutions and
Industrial Components posted higher earnings and improved margins compared with
a year ago.
Most companies in Measurement & Sensor Technology reported continued high market
activity and demand, at the same time that the EBITA margin was lower compared
with a strong third quarter a year ago, mainly owing to a changed mix.
For Special Products, a combination of acquisitions and large project-related
deliveries, together with continued favourable performance in the UK and
Benelux, contributed to the strong earnings.
Acquisitions
Two acquisitions were carried out during the quarter, plus an additional one
after the end of the quarter. Together the acquisitions carried out thus far
during the year represent roughly SEK 1.1 billion in annual sales. We expect to
make additional acquisitions before year-end.
Outlook
Our business model, which has proved its strength over the years, gives us
favourable prospects to continue handling the volatility in demand between
products, segments and markets. I believe that Indutrade stands well poised for
the future.
Johnny Alvarsson, President and CEO
This report will be commented upon as follows:
· Through a conference call/webcast today at 3 p.m. (CET) under the following
link:
http://event.onlineseminarsolutions.com/r.htm?e=1078738&s=1&k=EFE268F56076965BCD
6
4781364703C35
To participate, call SE: +46 8 566 426 65, UK: +44 203 428 14 14 or US:
+1 855 831 59 44
· Through a videotaped version available on Indutrade’s website:
http://www.indutrade.se
For further information, please contact: Johnny Alvarsson, President and CEO: 46
70 589 17 95
About Indutrade
Indutrade markets and sells components, systems and services with a high-tech
content within selected niches. Indutrade’s business is distinguished by high
-tech products for recurring needs, growth through a structured and tried-and
tested acquisition strategy and a decentralised organisation characterised by an
entrepreneurial spirit.
The Group is organised into six business areas: Engineering & Equipment, Flow
Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement &
Sensor Technology and Special Products. Indutrade’s sales totalled SEK 9,746
million in 2014, generating operating income of SEK 1,134 million before
depreciation of intangible assets. Indutrade is listed on the Nasdaq Stockholm.
