Interim report January–June 2011

Best quarterly earnings ever

• Net revenues amounted to MSEK 1,465 (1,096) for the first six months and MSEK 744 (655) during the second quarter
• The operating margin was 16.2 percent (19.0) in the first six months and 17.0 percent (18.3) during the second quarter
• Profit after financial items was MSEK 231.8 (203.6) during the first six months and MSEK 123.1 (117.5) during the second quarter
• Earnings per share totaled SEK 5.58 (5.01) during the first six months and SEK 2.98 (2.92) during the second quarter.
• Strong balance sheet; net debt/equity ratio of 6.8 percent (1.0)

President’s statement
The second quarter was the best quarter to date in Beijer Alma’s history. Invoicing increased, albeit at a somewhat slower pace than in the first quarter and the Group continues to build its order stocks. Habia experienced the most significant rate of increase, with both telecom and other customer groups reporting high growth. The positive volume trend contributed to higher earnings. Profit after financial items was MSEK 123, compared with MSEK 117 in the year-earlier period. However, operating margins declined somewhat as a result of the stronger SEK, rising commodity prices and pricing pressuring in several of the Group’s business areas. The current operating margins are also somewhat lower than in the past due to Beijer Tech, which is a trading company, now being consolidated in the Group. Cash flow was strong, which resulted in continued low indebtedness, despite a dividend and corporate acquisitions.

Lesjöfors’ invoicing rose 8 percent, which exclusively derived from the acquisition of the German chassis company Velleuer GmbH & Co. KG. Industrial Springs and Flat Strip Components reported growth, while Chassis Springs experienced lower sales year-on-year. Operating profit declined MSEK 7 to MSEK 100. The operating margin remained satisfactory, although the levels were somewhat lower than in the year-earlier period. The earnings and margin trend was attributable to lower volumes and pricing pressure in Chassis Springs, and an unfavorable exchange rate.

Habia experienced a sharp improvement in demand. Order bookings rose 44 percent and invoicing 26 percent. The growth derived from telecom and other customer groups. However, the major rise in order bookings was explained by exceptionally significant increase in the telecom segment.

Order bookings were considerably higher than invoicing, indicating that the company is entering the second half of the year with larger order stocks. Operating profit increased to MSEK 19, compared with MSEK 6 in the year-earlier period, and the operating margin was 11 percent. During the quarter, Habia’s former CFO, Carl Modigh, assumed the position as President.

Beijer Tech experienced improved demand in both of the company’s principal areas, Flow Technology/Industrial Rubber and Industrial Products. Corporate acquisitions also made a positive contribution. Overall, invoicing and order bookings were up 14 percent during the second quarter to MSEK 200. Operating profit rose to MSEK 17, generating an operating margin of 8 percent.

The business environment is particularly difficult to assess, although the Group entered the second half of the year with an increased order stock, and demand remained strong for the Group’s companies in July. Accordingly, the conditions are in place for a strong trend also during the third quarter

If you have any questions, please contact:
Bertil Persson, President & CEO, Telephone +46 8-506 427 50, bertil.persson@beijeralma.se
Jan Blomén, Chief Financial Officer, Telephone +46 18-15 71 60, jan.blomen@beijeralma.se

Read more at:
www.beijeralma.se

Visit our subsidiaries:
www.lesjoforsab.com
www.habia.com
www.beijertech.se

Tags: