Beijer Alma interim report Q3 2019
Acquisitions fueled growth during a quarter with varying demand
Group
Demand from Beijer Alma’s customers varied during the third quarter. The rate of activity in the defense, engineering and offshore industries, for example, remained high. The automotive industry – with respect to both manufacturing and the aftermarket – has slowed over the past year, but stabilized toward the end of the quarter.
In organic terms, order bookings decreased marginally, while net revenues increased slightly. As a result of acquisitions, favorable growth was achieved. Earnings trends varied between the subsidiaries, and the Group’s margin was lower overall. Excluding acquisition payments, cash flow improved significantly compared with previous quarters.
Subsidiaries
Order bookings remained unchanged for Lesjöfors, while net revenues declined. Toward the end of the quarter, revenues stabilized for both business areas. The peak season effects in Chassis Springs began to taper off toward the end of the quarter and demand from end customers has been lower this year, further amplified by de-stocking.
Within Habia, the improvements noted during the quarter were driven by a strong performance in Other Industry, mainly attributable to customers in defense, offshore and industry. Telecom’s performance recovered compared with previously low levels. The earnings improvement for Habia as a whole was substantial.
Beijer Tech reported a favorable quarter with profitable growth. The company noted positive organic growth and the contributions from acquired companies strengthened Beijer Tech’s revenues and earnings.
Acquisitions
The five acquisitions carried out during the first half of the year have been successfully incorporated into the Group and are contributing to the Group’s earnings. No further acquisitions were carried out in the third quarter. Our strategy to strengthen our subsidiaries through value-generating supplementary acquisitions remains firm.
If you have any questions, please contact:
Henrik Perbeck, President and CEO, Telephone +46 18 15 71 60, henrik.perbeck@beijeralma.se
Jan Blomén, Chief Financial Officer, Telephone +46 18 15 71 60, jan.blomen@beijeralma.se
This information is information that Beijer Alma AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 13:45 p.m. on October 24, 2019.
Beijer Alma AB (publ) is an international industrial group that focuses on component production and industrial supplies. The Group includes Lesjöfors, one of Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest manufacturers of custom-designed cables and Beijer Tech, with strong positions in industrial supplies in the Nordic region. Beijer Alma is listed on NASDAQ OMX Stockholm Mid Cap.
Beijer Alma AB (publ)
Dragarbrunnsgatan 45, Box 1747, SE-751 47 Uppsala, Sweden. Telephone +46 18 15 71 60.
Registered office: Uppsala. Corp. Reg. No: 556229-7480. www.beijeralma.se
