Bulten’s Q4 report 2018

Bulten wins new contracts for electric vehicles and takes market shares despite weaker market conditions.

FOURTH QUARTER

• Net sales amounted to SEK 747 (740) million, an increase of 1.0% on the same period last year.
• Operating earnings (EBIT) totaled SEK 48 (55) million, equating to an operating margin of 6.4% (7.5).
• Earnings after tax amounted to SEK 30 (47) million.
• Order bookings totaled SEK 741 (839) million, a decrease of 11.7% on the same period last year.
• Cash flow from operating activities totaled SEK 60 (2) million.
• Earnings per share were SEK 1.50 (2.26).
• Bulten has signed a Full Service Provider (FSP) contract for the driveline of an electric car, initially worth in the region of EUR 2 million a year at full production in 2021, starting in late 2020.
• Bulten has signed a Full Service Provider (FSP) contract for the driveline of an electric car, initially worth in the region of EUR 5 million a year at full production in 2021, starting in 2020.

JANUARY – DECEMBER

• Net sales amounted to SEK 3,132 (2,856) million, an increase of 9.7% on the same period last year.
• Operating earnings (EBIT) totaled SEK 210 (210) million, equating to an operating margin of 6.7% (7.4).
• Earnings after tax amounted to SEK 143 (159) million.
• Order bookings amounted to SEK 3,098 (3,015) million, an increase of 2.8% on the same period last year.
• Cash flow from operating activities totaled SEK 125 (58) million.
• Earnings per share were SEK 7.19 (7.98).
• Net debt amounted to SEK 181 (49) million and the equity/assets ratio was 64.8% (66.8) at the end of the period.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• Bulten has signed a Full Service Provider (FSP) contract for 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.
• The Board of Bulten AB will propose to the Annual General Meeting a dividend of SEK 4.00 (3.75) per share for 2018.

CEO’S COMMENTS

“Vehicle production fell during the quarter due to greater uncertainty on the market. The increased volatility in demand for vehicles is partly an effect of new environmental tax regulations in several European countries, as well as uncertainty regarding Brexit.

Bulten continues to win new business and take market shares despite weak market conditions. Net sales increased by 1%, and we are thereby compensating to some degree for the weak market development by start-up of new contract.

Order bookings during the quarter were in line with sales, but down 12 % compared to the previous year’s strong order bookings thanks to the start of new contracts and model shifts.

Operating earnings during the quarter were down on the previous year, primarily due to reduced volume development in the latter part of the quarter. The reduction in volume came with very little advance notice. Adaptations to production have begun but will take some time. Earnings were also egatively impacted by currency effects and the beginning of restructuring in China. Raw material prices stabilized during the quarter, although at continued high level.

Our financial position is strong and we are continuing with the strategic development and adaptation of our operation in line with the communicated plan. Demand for hybrids and electric cars is increasing, and this is a favorable development for Bulten. We are well positioned in this area and we signed two new FSP contracts during the quarter, for electric car drivelines.

As I now hand over to my successor Anders Nyström, Bulten is in an excellent position to continue winning new contracts and market shares.”

Tommy Andersson, President and CEO

Investors, analysts and media are invited to participate in the teleconference on February 8 at 15:30 CET. The report will be presented by Tommy Andersson, 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-q4-2018. 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: +46856642706
UK: +443333009261
US: +16467224902

For further information, please contact:

Tommy Andersson, 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 February 7, 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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