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Bulten’s Q3 report 2020

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Strong order bookings and increased market shares thanks to new contracts.

THIRD QUARTER

  • Net sales amounted to SEK 853 (718) million, an increase of 18.8% on the same period last year, of which SEK 117 million is attributable to the acquisition of PSM.
  • Operating earnings (EBIT) totaled SEK 40 (-8) million, equating to an operating margin of 4.7% (-1.0). Last year, operating earnings amounted to SEK 19 million adjusted for relocation in China and restructuring in Germany, which corresponds to an adjusted operating margin of 2.8%.
  • Earnings after tax amounted to SEK 17 (-14) million.
  • Order bookings amounted to SEK 1,322 (776) million, an increase of 70.2% on the same period last year, of which SEK 113 million is attributable to the acquisition of PSM.
  • Cash flow from operating activities totaled SEK 157 (114) million.
  • Earnings per share were SEK 0.91 (-0.75).
  • Bulten has signed a Full Service Provider (FSP) contract for delivery of fasteners to a European OEM, which is also an existing customer, worth in the region of EUR 60 million a year at full production. Deliveries began in July 2020 and start-up costs are estimated to total approximately EUR 1 million.  
  • Bulten has recruited Markus Baum to the new role of Chief Commercial Officer (CCO) from November 1, 2020, Claes Lundqvist has been appointed Acting Chief Financial Officer (CFO) from August 1, 2020, and Fredrik Bäckström has taken up the new role of Chief Operating Officer (COO).
  • Bulten has appointed Emmy Pavlovic to the position of Senior Vice President Technology and Innovation.
  • PSM’s CEO Marco Suzuki has decided to step down. Bulten President and CEO Anders Nyström is taking over leadership of PSM until a new management structure has been established.

JANUARY–SEPTEMBER

  • Net sales amounted to SEK 2,115 (2,309) million, a decrease of -8.4% on the same period last year, of which SEK 240 million is attributable to the acquisition of PSM.

  • Operating earnings (EBIT) totaled SEK 24 (71) million, equating to an operating margin of 1.2% (3.1). Last year, operating earnings amounted to SEK 105 million adjusted for relocation in China and restructuring in Germany, which corresponds to an adjusted operating margin of 4.6%.

  • Earnings after tax amounted to SEK -13 (44) million.

  • Order bookings amounted to SEK 2,419 (2,261) million, an increase of 7.0% on the same period last year, of which SEK 349 million is attributable to the acquisition of PSM.

  • Cash flow from operating activities totaled SEK 271 (109) million.

  • Earnings per share were SEK -0.33 (2.08).

  • Net debt amounted to SEK 605 (596) million. Net debt (excluding lease liabilities) totaled SEK 238 (328) million.

  • The equity/assets ratio was 49.7% (54.8) at the end of the period. The equity/assets ratio (excluding lease liabilities) totaled SEK 56.0% (59.9).

  • As of February 28, 2020, Bulten has acquired all shares in PSM International Holdings Limited (PSM) for a purchase price amounting to MUSD 24.5 (SEK 230 million) on a cash and debt-free basis.

  • Bulten has acquired a minority stake in TensionCam Systems AB (TensionCam) for a purchase price of SEK 6 million.

CEO’S COMMENTS

The third quarter began cautiously following the pandemic, but there was a clear improvement towards the end of August and in September. Operating earnings during the quarter rose to SEK 40 (-8) million and primarily reflect the higher sales and production volumes. All employees on reduced working hours or furlough due to the pandemic have been back on full hours since October 1.

During the quarter, Bulten’s net sales increased by 18.8% and order bookings by as much as 70.2%. The higher sales and dramatic increase in orders indicate that the automotive market is in recovery, and we continue to win market shares as satisfied customers entrust us with new contracts.

We are very pleased about the new full service contract (FSP) that we signed and communicated in July with an annual order value of approximately EUR 60 million at full pace. The contract is a takeover of an FSP solution from a competitor for two assembly plants with an existing customer, which meant that deliveries begin immediately at the prevailing pace. Thanks to the new business, combined with the strong development of our strategic acquisition of PSM, we are now performing better than the market, which has been and remains our ambition.

It is difficult to predict market developments for the rest of 2020, due to COVID-19 and macroeconomic factors that could affect our customers’ production. As we have done previously this year, we will continue to adapt our operation to changes in the wider world.

Our focus on technology and innovation is being further intensified, and I am delighted to welcome Emmy Pavlovic as Senior Vice President for Technology and Innovation. Despite the uncertain development we stand by our strategy – Stronger 24 – and continue to build an even stronger Bulten.”      

Anders Nyström, President and CEO

 

Investors, analysts and media are invited to participate in the teleconference on October 22 at 15:30 CET. The report will be presented by Anders Nyström, President and CEO and Claes Lundqvist, acting CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q3-2020. 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: +46850558352

UK: +443333009267

US: +18335268381

Copies of the presentation will be available at www.bulten.com/ir approximately 30 minutes before start.

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 contact person set out above, 22 October 2020 at 13:30 CET.

Bulten Group 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 1,700 employees in sixteen countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm.  Read more at www.bulten.com.

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