CONCENTRIC INTERIM REPORT JANUARY – MARCH 2014

First quarter of 2014: Positive trend for sales and margins has continued

• Net sales for Q1, excluding revenues attributable to Alfdex: MSEK 496 (422) [1] – up 9% year-on-year, after adjusting for currency (+3%) and LICOS (+6%)
• Operating income for Q1, including net income (after interest and tax) attributable to Alfdex: MSEK 77 (58) – operating margin of 15.5% (13.7) [1]
• Earnings after tax for Q1: MSEK 53 (37) – basic and diluted EPS of SEK 1.20 (0.84) [1]
• Group’s net debt for Q1: MSEK 342 (452) [1] – gearing ratio of 40% (72)

[1] The 2013 comparative figures for Net sales, Operating income, Earnings before tax and Net debt for the period have been adjusted for the amendments to IFRS 11, “Joint arrangements” (see Appendices 1 to 3 for the restated consolidated income statements, balance sheets and cash flow statements).

President and CEO, David Woolley, comments on interim report for Q1 2014:

“The positive sales and margin trend we highlighted in the second half of 2013 has continued into the first quarter of 2014. Sales were up 9% y-o-y, after adjusting for LICOS (+6%) and currency (+3%), while the EBIT margin increased to 15.5%. In spite of some pre-buy effects experienced prior to the launch of Euro VI engines in 2014, the demand across our European end-markets has remained strong and continues to be an important source of growth. It is also encouraging to see that our North American end-markets have started to show signs of improvement, especially in the medium and heavy trucks market.

Looking forward, the orders received in the first quarter were slightly above sales for the quarter, indicating that end-customer confidence continues to improve.

The increasing pressure to reduce fuel consumption in all forms of machinery and trucks just reinforces the importance of our ongoing customer development programmes for our variable flow pump technology. Furthermore, our longstanding expertise in hydraulic products, exemplified by the recent award of John Deere’s highest supplier rating to our Rockford hydraulics facility, will allow us to continue to occupy strong positions in niche areas where customers require more advanced, custom-made solutions. Concentric remains well positioned, both financially and operationally, to fully leverage our market opportunities.”

 
For further information, please contact:
David Woolley (President and CEO), David Bessant (CFO), or Lena Olosdotter (Corporate Communications), at Tel: +44 121 445 6545 (E-mail: info@concentricab.com)
 

Concentric AB (publ) is listed on NASDAQ OMX Stockholm, Mid Cap. The information in this report is of the type that Concentric is required to disclose under the Swedish Securities Market Act. The information was submitted for publication at 11.00am on 30 April, 2014. This report contains forward-looking information in the form of statements concerning the outlook for Concentric’s operations. This information is based on the current expectations of Concentric’s management, as well as estimates and forecasts. The actual future outcome could vary significantly compared with the information provided in this report, which is forward-looking, due to such considerations as changed conditions concerning the economy, market and competition.

Tags: