Ovako publishes its report for the first quarter 2017
Today Ovako announced its result for the first quarter 2017. EBITDA before restructuring costs improved considerably to EUR 32 (18) million and order intake increased by 35 percent compared to previous year. Ovako’s restructuring has delivered savings of EUR 6 million during the quarter.
First quarter 2017 (2016)
- Order intake increased by 35 percent compared to the previous year
- Sales volume was 11 percent higher than in the previous year and
revenue rose by 16 percent - EBITDA before restructuring costs improved considerably to EUR 32 (18) million, mainly due to higher volumes and reduced costs from the restructuring program
- Operating profit (EBITA) amounted to EUR 24 (10) million before restructuring costs of EUR 1 (1) million
- Cash flow from operating activities amounted to EUR -3 (2) million, including payment of restructuring costs of EUR 1 (2) million
- Ovako’s restructuring program continues to be ahead of plan. It contributed
EUR 6 million in the form of lower costs during the quarter
“The year started strongly, with higher order intake, increased deliveries and improved earnings while our focused safety efforts continued to pay off. We saw clear positive effects both from our enhanced commercial efforts, where we continue to attract new customers and take new business, and from our restructuring program, which is improving our competitiveness through reduced structural costs. In addition, we saw a positive effect from generally stronger demand in the market”, says Marcus Hedblom, President and CEO at Ovako. “There is still uncertainty about the long-term development for the industry. Ovako will continue to monitor its development and are fully prepared to adapt our capacity to changes in demand.”
Short-term outlook
In the second quarter, we expect to continue to see generally good market conditions, a positive contribution from new business, lower costs deriving from our restructuring program, and a positive effect from base price increases. Our assessment is that sales volumes in the second quarter will be higher than for the corresponding period of the previous year.
Group KPIs
| 2017 Q1 | 2016 Q1 | 2016 Full year | ||||
| Sales volumes | Kton | 204 | 184 | 708 | ||
| Net revenue | EURm | 233 | 201 | 781 | ||
| EBITDA before restructuring cost | EURm | 32 | 18 | 57 | ||
| EBITDA | EURm | 31 | 17 | 50 | ||
| Adjusted EBITDA margin | 13.7 % | 8.8 % | 7.3 % | |||
| EBITDA margin | 13.3 % | 8.4 % | 6.4 % | |||
| Operating profit (EBITA) before restructuring cost | EURm | 24 | 10 | 25 | ||
| Operating profit (EBITA) | EURm | 23 | 9 | 18 | ||
| Adjusted operating margin (EBITA) | 10.3 % | 4.8 % | 3.2 % | |||
| Operating margin (EBITA) | 9.9 % | 4.4 % | 2.3 % | |||
| EBIT | EURm | 21 | 7 | 9 | ||
| Net profit/loss | EURm | 11 | 1 | -12 | ||
| Cash flow from operating activities | EURm | -3 | 2 | 35 | ||
| Full time employees at end of period (FTE) | No. | 2,839 | 2,848 | 2,773 | ||
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For more information please contact:
Press and media contacts
Oskar Bosson, Head of Group Communications
Telephone: +46 704 10 71 80
E-mail: oskar.bosson@ovako.com
Investor relations
Nicholas Källsäter, Head of Group Business Control
Telephone: +46 8 622 1323
E-mail: nicholas.kallsater@ovako.com
About Ovako
Ovako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Our steel makes our customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally friendly products.
Our production is based on recycled scrap and includes steel in the form of bar, tube, ring and components. Ovako is represented in more than 30 countries and has sales offices in Europe, North America and Asia. Ovako’s sales in 2016 amounted to EUR 781 million, and the company had 2,800 employees at year-end. For more information, please visit us at www.ovako.com.
This information is information that Ovako 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 contact person set out above, at 8.00 CET on April 27, 2017.
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