Ovako publishes its report for the second quarter 2017
Today Ovako announced its result for the second quarter 2017. EBITDA before restructuring costs improved to EUR 30 (28) million and order intake increased by 15 percent compared to previous year. Ovako’s restructuring program has delivered savings of EUR 5 million during the quarter.
Second quarter 2017 (2016)
- Order intake increased by 15 percent compared to the previous year
- Sales volume was 5 percent higher than in the previous year, and revenue rose by 11 percent
- EBITDA before restructuring costs improved to EUR 30 (28) million due to higher volumes and reduced costs, but was affected by EUR -7 million year-on-year by timing effects in scrap and alloy prices and currency effects
- Operating profit (EBITA) amounted to EUR 22 (21) million before restructuring costs of EUR 2 (1) million
- Cash flow from operating activities amounted to EUR 9 (8) million, including payment of restructuring costs of EUR 2 (2) million
- Ovako’s restructuring program contributed EUR 5 million in the form of lower costs
“Ovako’s result strengthened in the second quarter, driven primarily by an improved cost structure and new business. The order stock continued to strengthen and was by the end of the second quarter 56 percent higher than at the same time last year, and 11 percent higher than at the end of the first quarter. Our safety work is continuing to make good progress and the number of accidents resulting in lost time is now at the lowest level in the company’s history. Ongoing safety efforts remain a high priority as we work towards our long-term objective: an accident-free Ovako,” says Marcus Hedblom, President and CEO at Ovako. “Overall, the first half of 2017 was significantly better than the same period last year and we are confident as we move into the coming quarters.”
Short-term outlook
In the light of currently high activity among our customers and a larger order stock that also extends further ahead in time, we expect the sales volume in the third quarter to be higher than for the same period last year, but seasonally lower than in the second quarter this year.
Group KPIs
| 2017 Q2 | 2016 Q2 | 2017 Q1–2 | 2016 Q1–2 | 2016 Full year | ||
| Sales volumes | kton | 212 | 201 | 416 | 386 | 708 |
| Net revenue | EURm | 244 | 219 | 478 | 420 | 781 |
| EBITDA before restructuring cost | EURm | 30 | 28 | 62 | 46 | 57 |
| EBITDA | EURm | 28 | 28 | 59 | 44 | 50 |
| Adjusted EBITDA margin | 12.1 % | 13.0 % | 12.9 % | 11.0 % | 7.3 % | |
| EBITDA margin | 11.4 % | 12.6 % | 12.4 % | 10.6 % | 6.4 % | |
| Operating profit (EBITA) before restructuring cost | EURm | 22 | 21 | 46 | 30 | 25 |
| Operating profit (EBITA) | EURm | 20 | 20 | 43 | 29 | 18 |
| Adjusted operating margin (EBITA) | 8.9 % | 9.4 % | 9.6 % | 7.2 % | 3.2 % | |
| Operating margin (EBITA) | 8.2 % | 9.0 % | 9.1 % | 6.8 % | 2.3 % | |
| EBIT | EURm | 18 | 17 | 39 | 24 | 9 |
| Net profit/loss | EURm | 9 | 10 | 20 | 10 | -12 |
| Cash flow from operating activities | EURm | 9 | 8 | 6 | 11 | 35 |
| Full time employees at end of period (FTE) | No | 2,889 | 2,809 | 2,889 | 2,809 | 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 July 14, 2017.
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