Gränges' Half-year Report 2015

Earnings at new high, while Asia is slowing down

Second quarter 2015
• Sales volume reached 43.4 ktonnes (41.7), an increase of 4.0% compared to previous year.
• Net sales totalled SEK 1,506 million (1,176), an increase of 28.0%.
• Adjusted operating profit increased by 21.2% to SEK 158 million (130), corresponding to an adjusted operating margin of 10.5% (11.1).
• Operating profit increased to SEK 158 million (124).
• Profit for the period was SEK 115 million (90). Earnings per share, basic and diluted, amounted to SEK 1.54 (1.21).

First half-year 2015
• Sales volume reached 86.1 ktonnes (83.1), an increase of 3.7% compared to previous year.
• Net sales totalled SEK 2,962 million (2,333), an increase of 26.9%.
• Adjusted operating profit increased by 22.9% to SEK 313 million (254), corresponding to an adjusted operating margin of 10.6% (10.9).
• Operating profit increased to SEK 313 million (244).
• Profit for the period was SEK 226 million (175). Earnings per share, basic and diluted, amounted to SEK 3.03 (2.35).
• Gränges has a solid financial position. At 30 June 2015, the equity to assets ratio amounted to 50.8% and net debt corresponded to 1.0 times adjusted EBITDA (on a rolling 12-month basis).

Comments by the CEO Johan Menckel: 
”I am pleased to present another strong quarter for Gränges. During the second quarter of 2015 adjusted operating profit rose by 21% to SEK 158 million compared to the same quarter last year. This is our best quarterly result so far. Favorable foreign exchange rates continue to a­­­ffect us positively”, says Johan Menckel.

Webcasted telephone conference  
On Tuesday 21 July 2015 at 10.00 CET, CEO Johan Menckel and CFO Oskar Hellström will present Gränges’ half-year report for the period January-June 2015 via a webcasted telephone conference. The webcast can be accessed on Gränges website www.granges.com/investors. To take part in the telephone conference, please call +46 856642691 (Sweden), +44 2031940544 (United Kingdom) or +1 8552692604 (USA). Please call a few minutes before the telephone conference starts. The presentation will be made in English. 

For additional information, please contact:  
Pernilla Grennfelt, Director Communications & IR 
pernilla.grennfelt@granges.com , telephone +46 (0) 702 90 99 55

The information in this half-year report is such that Gränges must disclose pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on Tuesday 21 July 2015 at 07.30 CET. 

About Gränges 
Gränges is a leading global supplier of rolled products for producers of brazed aluminum heat exchangers. The Company develops, produces and markets highly advanced materials that enhance both the production economy of the customer manufacturing process as well as the performance of the final product, the brazed heat exchanger. Gränges has its headquarters in Stockholm, Sweden and operates in three geographical regions: Europe, Asia and the Americas. The Company operates production, research and development facilities in Finspång and Shanghai with total annual capacity of approximately 220,000 metric tonnes. The Company was originally founded in 1896, and the current operation was started in 1972 when the Company started to develop brazed heat exchanger material. Gränges has approximately 950 employees, and in 2014 the Company had net sales of SEK 4,748 million. For more information about Gränges, please visit www.granges.com.

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About Us

Gränges is a global leader in aluminium engineering, manufacturing and innovation. We focus on rolled aluminium products for heat exchangers and selected niche applications. In materials for brazed heat exchangers, Gränges is the global leader with a market share of approximately 20%. Its production facilities are located in Sweden, China and the United States, and have a combined annual capacity of 420,000 metric tonnes. Gränges has some 1,600 employees and net sales of more than SEK 11 billion. The share is listed on Nasdaq Stockholm. More information on Gränges is available at granges.com.

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Quotes

I am pleased to present another strong quarter for Gränges. During the second quarter of 2015 adjusted operating profit rose by 21% to SEK 158 million compared to the same quarter last year. This is our best quarterly result so far. Favorable foreign exchange rates continue to a­­­ffect us positively.
Johan Menckel, CEO of Gränges