Bulten’s Q1 report 2019

Investments and new business lay a solid foundation for the future.

FIRST QUARTER  

• Net sales amounted to SEK 810 (853) million, a decrease of -5.1% on the same period last year.
• Operating earnings (EBIT) totaled SEK 58 (67) million, equating to an operating margin of 7.1% (7.8).
• Operating earnings (EBIT) adjusted for restructuring costs totaled SEK 59 (67) million, equating to an operating margin of 7.3% (7.8).
• Earnings after tax amounted to SEK 44 (48) million.
• Order bookings totaled SEK 733 (779) million, a decrease of -5.9% on the same period last year.
• Cash flow from operating activities totaled SEK -57 (26) million.
• Earnings per share were SEK 2.12 (2.43).
• Net debt amounted to SEK 501 (60) million. Net debt (excluding lease liabilities) totaled SEK 252 (22) million.
• The equity/assets ratio was 58.0% (66.5) at the end of the period. The equity/assets ratio (excluding lease liabilities) totaled SEK 62.9% (66.5).
• Bulten has signed a Full Service Provider (FSP) contract for delivery of fasteners in a new vehicle program, worth in the region of EUR 13 million a year at full production in 2021, starting in late 2019. 

CEO’S COMMENTS

“The global car market was characterized by lower sales of new cars during the second half of 2018. This has continued into the first quarter of 2019, and the most marked slowdown was in China. On Bulten’s main market, Europe, the slowdowns in the car industry are primarily being caused by consumer concerns about the effects of a possible hard Brexit as well as new environmental regulations, rather than a general economic downturn. The fact that the market for economically sensitive heavy vehicles remained strong substantiates this view.

Net sales fell by 5% compared to the very strong first quarter of 2018. Investments being made in increased capacity and productivity will increase earning potential in the longer term. The new heat treatment line in Hallstahammar went into production at the end of March and will bring efficiency enhancements during the second quarter. The previously announced relocation of production in China, from Beijing to Tianjin, is proceeding to plan, and is currently in the implementation phase including stock build-up. In addition to the relocation of operations in China, preparedness for Brexit, the ramping up of new projects and a slowdown in demand has increased capital tied up since six months. Activities are ongoing to normalize and improve control at inventory levels. 

Operating earnings amounted to SEK 58 million, corresponding to an operating margin of 7.1%. The raw material prices that increased dramatically in 2018 have now stabilized, although at a high level. 

My first months as CEO have been an intensive, educational experience. Bulten is a strong company with knowledgeable employees and enjoys a very high level of confidence among its customers. Combined with our financial strength and our unique position as an FSP supplier, this gives us good opportunities to continue to grow profitably.”

Anders Nyström, President and CEO

Investors, analysts and media are invited to participate in the teleconference on April 25 at 15:30 CET. The report will be presented by Anders Nyström, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q1-2019. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

SE: +46856642707
UK: +443333009266
US: +18335268383

For further information, please contact:

Anders Nyström, President and CEO
Tel: + 46 31-734 59 00

Kamilla Oresvärd, Senior Vice President Corporate Communications
Tel: +46 70-520 59 17, e-mail: kamilla.oresvard@bulten.com

This information is information that Bulten 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 Senior Vice President Corporate Communications set out above, at 13:30 CET on April 25, 2019.

Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com.

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