Gränges Interim report January-March 2016

Volume growth and stable profit in first quarter

First quarter 2016

  • Sales volume reached 45.1 ktonnes (42.7), an increase of 5.7% compared to previous year.
  • Net sales totalled SEK 1,360 million (1,456), a decrease of 6.6% compared to previous year.
  • Adjusted operating profit amounted to SEK 155 million (155), corresponding to an adjusted operating margin of 11.4% (10.6).
  • Operating profit amounted to SEK 155 million (155).
  • Profit for the period was SEK 94 million (111). Earnings per share basic and diluted decreased to SEK 1.25 (1.49).
  • Cash flow before financing activities was SEK -22 million (-1).
  • Net debt amounted to SEK 316 million at 31 March 2016, corresponding to 0.4 times adjusted EBITDA.

“In short, the year has begun well for us. Sales volumes increased 5.7% in the first quarter, driven by continued robust performance primarily in Europe and the Americas. This compares to growth of just 1% for the period in our underlying markets, according to IHS forecasts. Adjusted operating profit was SEK 155 million, which is in line with the first quarter previous year. Higher volumes and positive currency effects have offset lower conversion prices, a change in geographical mix in terms of production costs, as well as the price lag on aluminium premiums”, says CEO Johan Menckel.

Webcasted telephone conference
On Thursday 28 April 2016 at 10.00 CET, CEO Johan Menckel and CFO Oskar Hellström will present Gränges’ interim report for January-March 2016 at a webcasted telephone conference. The webcast can be accessed on www.granges.com/investors.

To take part in the telephone conference, please call +46 856 642 661 (Sweden), +44 203 194 0544 (UK) or +1 855 269 2604 (USA). Please call a few minutes before the telephone conference starts. The presentation will be in English.

For additional information, please contact:
Pernilla Grennfelt
Director Communications and Investor Relations
pernilla.grennfelt@granges.com
Telephone +46 (0) 702 90 99 55

The information in this interim 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 Thursday 28 April 2016 at 07.30 CET.

About Gränges
Gränges is a leading global supplier of rolled products for brazed aluminium heat exchangers. The company develops, produces and markets advanced materials that enhance efficiency in the customer manufacturing process and the performance of the final products; brazed heat exchangers. The company’s geographical markets are Europe, Asia and the Americas. Its production facilities are located in Finspång, Sweden, and Shanghai, China, and have a combined annual capacity of 220,000 metric tonnes. Gränges has some 950 employees and net sales in 2015 totalled SEK 5,494 million. The share has been listed on Nasdaq Stockholm since October 2014. More information on Gränges is available at 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 10 billion. The share is listed on Nasdaq Stockholm. More information on Gränges is available at granges.com.

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Quotes

In short, the year has begun well for us. Sales volumes increased 5.7% in the first quarter, driven by continued robust performance primarily in Europe and the Americas. This compares to growth of just 1% for the period in our underlying markets, according to IHS forecasts. Adjusted operating profit was SEK 155 million, which is in line with the first quarter previous year. Higher volumes and positive currency effects have offset lower conversion prices, a change in geographical mix in terms of production costs, as well as the price lag on aluminium premiums.
Johan Menckel, CEO of Gränges