Bulten’s Q3 report 2017

Strong order bookings and preparations for future growth.

THIRD QUARTER

  • Net sales reached SEK 630 million (601), an increase of 5.0% on the same period last year.
  • Operating earnings (EBIT) were SEK 35 million (39), which corresponds to an operating margin of 5.5% (6.5).
  • Earnings after tax were SEK 22 million (30).
  • Order bookings amounted to SEK 691 million (602), an increase of 14.7% on the same period last year.
  • Cash flow from operating activities was SEK 21 million (55).
  • Earnings per share were SEK 1.11 (1.50).
  • Bulten’s joint venture, Ram-Bul, has signed a contract worth around USD 5.5 million per year at full volumes, which are expected to be reached in 2019/2020.
  • Bulten has signed an FSP contract worth around EUR 30 million per year at full volumes, which are expected to be reached in 2020.
  • Bulten AB has decided to invest around PLN 80 million (approximately SEK 177 million) in a new strategically important production and logistics plant in Poland with expected production start in the first half of 2019.

JANUARY – SEPTEMBER 

  • Net sales reached SEK 2,116 million (2,002), an increase of 5.7% on the same period last year.
  • Operating earnings (EBIT) were SEK 155 million (148), which corresponds to an operating margin of 7.3% (7.4).
  • Earnings after tax were SEK 112 million (109).
  • Order bookings amounted to SEK 2,176 million (1,973), an increase of 10.3% on the same period last year.
  • Cash flow from operating activities was SEK 56 million (228).
  • Earnings per share were SEK 5.71 (5.45).
  • Net debt was SEK 13 million (62) and the equity/assets ratio at the end of the period was 68.6% (68.1).

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

  • Bulten has decided to invest in a new heat treatment line in Hallstahammar of approximately SEK 45 million.
  • Bulten is preparing to change CEO by 2019 at the latest due to his retirement.

CEO’S COMMENTS

“Bulten had a successful third quarter with the signing two new significant contracts. One of the contracts is one of Bulten’s largest FSP contracts ever and the other is a breakthrough in an important strategic market - both are expected to be of great importance to future growth. During the quarter we saw strong order bookings, up 14.7% and a net sales up 5.0%, both on the same period last year. The growth and profitability were hampered by slightly lower volumes due to customers’ model changes. The profitability has also been negatively impacted by higher global market prices for steel and other metals, as well as currency effects, especially in terms of the comparison between the years. Underlying profitability is good considering this was the third quarter, which has fewer production days.

Bulten’s financial position is strong and we are well prepared for a phase of coming growth. To meet increased demand for our products we decided to invest in yet another plant for production and distribution of fasteners in Poland during the quarter, which will become one of Europe’s leading fastener facilities.

On 21 September, Bulten arranged a capital markets day in Hallstahammar where the focus was on production and future development. One of the topics was what the development of electric cars will mean for Bulten. Fasteners must be adapted for the new materials and designs being developed for electric cars and we are at the leading edge when it comes to supplying vehicle manufacturers with the latest technology. Our reference contracts show that the value for fasteners in electric vehicles today is cleary higher than in vehicles based on conventional technology.

In summary, Bulten is well-equipped to handle the forecast market growth and the growth through signed contracts that are worth around half a billion Swedish kronor annually. The additional contracts will start up successively during the period from the end of 2017 into 2018, with the full production rate expected in 2020.”

Tommy Andersson, President and CEO

Investors, analysts and media are invited to participate in the teleconference on October 26 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-q3-2017. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

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

SE: +46856642693
UK: +442030089802
US: +18558315947

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 26, 2017.

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 1,300 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com

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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 1,200 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com

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