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Bulten’s Q4 report 2020

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Record quarter ended 2020.

FOURTH QUARTER

  • Net sales amounted to SEK 1,080 (784) million, an increase of 37.6% on the same period last year; SEK 129 million is attributable to the acquisition of PSM.

  • Operating earnings (EBIT) totaled SEK 92 (27) million, equating to an operating margin of 8.5% (3.5). Adjusted operating earnings totaled SEK 85 (42) million, equating to an adjusted operating margin of 7.8% (5.4).

  • Earnings after tax amounted to SEK 63 (11) million.

  • Order bookings amounted to SEK 1,188 (842) million, an increase of 41.1% on the same period last year; SEK 140 million is attributable to the acquisition of PSM.

  • Cash flow from operating activities totaled SEK 176 (98) million.

  • Earnings per share were SEK 2.96 (0.54).

  • Bulten has recruited Anna Åkerblad to the post of Chief Financial Officer (CFO). She will start by the beginning of March 2021.

JANUARY–DECEMBER

  • Net sales amounted to SEK 3,195 (3,093) million, an increase of 3.3% on the same period last year; SEK 369 million is attributable to the acquisition of PSM.

  • Operating earnings (EBIT) totaled SEK 116 (98) million, equating to an operating margin of 3.6% (3.2). Adjusted operating earnings totaled SEK 113 (147) million, equating to an adjusted operating margin of 3.5% (4.8).

  • Earnings after tax amounted to SEK 50 (55) million.

  • Order bookings amounted to SEK 3,607 (3,103) million, an increase of 16.2% on the same period last year; SEK 488 million is attributable to the acquisition of PSM.

  • Cash flow from operating activities totaled SEK 447 (207) million.

  • Earnings per share were SEK 2.66 (2.62).

  • Net debt amounted to SEK 458 (565) million. Net debt (excluding lease liabilities) totaled SEK 112 (299) million.

  • The equity/assets ratio was 49.4% (55.2) at the end of the period. The equity/assets ratio (excluding lease liabilities) totaled SEK 55.2% (60.5).

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

  • Bulten has acquired a minority holding in TensionCam Systems AB (TensionCam) at a purchase sum of SEK 6 million.

  • 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.  

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

  • The Board of Bulten AB will propose to the Annual General Meeting a dividend of SEK 2.00 (0.00) per share for 2020.

CEO’S COMMENTS

“The improvement we saw at the end of the third quarter has continued during the fourth quarter with a recovery in the market, phasing-in of new contracts according to plan, and good development in the acquired company, PSM. During the quarter, Bulten’s net sales increased by 37.6% and order bookings by as much as 41.1%.

Strong demand, higher capacity utilization and a positive outcome from the streamlining initiatives begun in 2019, and accelerated during the pandemic, have led to positive effects on earnings. Operating earnings totaled SEK 92 million, equating to an operating margin of 8.5%. Adjusted for non-recurring items of SEK 7 million, operating earnings for the quarter totaled SEK 85 million, equating to an operating margin of 7.8%. Thanks to focused initiatives, we had a positive cash flow from operating activities of SEK 176 million, of which change in working capital totaled SEK 55 million. Even disregarding acquisition effects this is a record quarter in Bulten’s history, both as regards sales and profit – something we are very proud of.

We can however see several challenges in the immediate future. COVID-19 has continued to create uncertainty in the world. A lack of microprocessors has also caused disruptions to our customers’ production, which is expected to continue during the first half of 2021. We have maintained our flexibility and have good opportunities to adapt the operation to the situation, and are also continuing the infection control measures introduced at our plants to assure health and safety.

Despite a very turbulent 2020, we have succeeded well in our efforts to complete our ‘Stronger 24’ strategy plan, which we introduced at the beginning of 2020. The executive management team has been expanded and is partly new, and this means among others a stronger focus on sales to new customers and on technology development. The relocation of our production units in Taiwan and the USA has gone according to plan, and we still see potential in synergies with our acquired company PSM, which has now been fully integrated in the Bulten organization. Bulten continues to gain market share and we see good opportunities to strengthen our position further in 2021.”

Anders Nyström, President and CEO

 

Investors, analysts and media are invited to participate in the  teleconference on February 11 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-q4-2020. 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: +46850558368
UK: +443333009269
US: +18335268384

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, at 13:30 CET on 11 February 2021.

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 1,600 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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