I’m especially satisfied with us being able to report positive cash flow despite lower earnings, and reduce net debt in the period.
Westermo became our largest business entity in the quarter, and the acquisition of Virtual Access paves the way for profitable growth.
I am pleased that we today announce this second complementary acquisition to the business entity Westermo. We operate in markets where digitalisation is growing rapidly in an increasingly connected world and this acquisition of Virtual Access strengthens our position further.
After somewhat lower earnings in Q2, it feels positive to report a strong third quarter.
Earnings are continuing to increase. We’re converging on our target of a 10% EBIT margin.
Order intake of over 450 MSEK for the quarter is a really good level.
After eight quarters of better order intake than sales, we have a strong order book.
The Beijer Electronics business entity is providing a significant part of the Group’s recovery, which I’m delighted about, considering the major restructuring it has undergone.
We have significantly regenerated our product range, which has already had a positive impact on sales. We’re confident of continued positive progress ahead.
We’re not satisfied with our earnings, but are heading in the right direction after our major realignment.
We appreciate the support and trust our shareholders have shown in the Board and Management in their continued work on developing the Group.
We have now staked out our path for the coming years and secured room to maneuver for our ongoing development initiatives.
The continued strong order intake was pleasing. Westermo's excellent results were complemented by growth in the other business units.
The realignment we have commenced, with organizational changes, cost reductions and a higher product development tempo, is being executed professionally. We will be going into 2017 with good potential to increase sales.
Beijer Electronics recovered in the second quarter and we are heading in the right direction. We’re moving from the red into the black.
My first six months as CEO of Beijer Electronics have clearly shown the competencies and professionalism of our people in the IAS and IDC business areas. Capitalizing on our employees’ expertise and potential will be a critical factor in the forthcoming change process and is the key to our success.
The group allocates significant resources to in-house development of high-tech solutions that are sold globally, with more than 80% of group sales derived from such products in 2014.
Focus during the year has been on our global sales efforts. We have opened two new sales offices in Asia, in Malaysia and Korea, and hired a total of 20 new salespeople worldwide. By being present in different parts of the world, we reduce our sensitivity to economic fluctuations and create conditions for one of our key competitive advantages – closeness to our customers.
Building automation is a segment we’re prioritizing, and this order is a strategic milestone. The targeted effort has, in addition to the delivery to the National Library, also resulted in prestigious orders for Sweden's new national stadium Friends Arena, the Vasa Museum and the National Museum.
In our sector, future-focused and customer-oriented product development is an absolute necessity for success on the market. In 2011, we invested more funds than ever before in our development operation, and we got a very good pay-off in the form of world-leading products and solutions.
For the full year, Beijer Electronics was able to post its highest sales to date and record profits. Sales increased by 15% to over SEK 1.4 billion, and operating profit increased by over 20% to 150 MSEK. Our acquisitions, QSI of the US and Korenix of Taiwan, have been successful, exceeding expectations. They both made significant contributions to growth and profits. Simultaneously, we retained good cost control, which has had its effect on profits
The industrial growth and infrastructure expansion in both countries offer interesting business opportunities within industrial automation and industrial data communication. Our establishment in these growing economies is a natural step in our geographical expansion strategy to ensure growth and improve customer support.