Interim Report January-June 2014: Continued Sales Growth and Improved Profitability in the Second Quarter

Second Quarter

• Order intake of 353.7 MSEK (363.8).
• Net sales up by 6% to 355.4 MSEK (336.0).
• Operating profit increased to 55.7 MSEK (12.6) including a 32.9 MSEK capital gain. Excluding the capital gain, operating profit was 22.8 MSEK.
• Profit after tax was 30.3 MSEK (0.7).
• Earnings per share were 1.57 SEK (0.11) including the capital gain.
• Disposal of vehicle operation in the US in the quarter.

First Half-year

• Order intake of 708.4 MSEK (721.7).
• Net sales up by 6% to 701.5 MSEK (663.8).
• Operating profit increased to 81.9 MSEK (37.3) including a 32.9 MSEK capital gain.
• Profit after tax was 45.4 MSEK (17.5).
• Earnings per share were 2.36 SEK (0.93) including the capital gain.

COMMENTS FROM FREDRIK JÖNSSON, CEO

“Beijer Electronics achieved continued sales increases and improved operating profit in the second quarter 2014. The cautiously positive trend was confirmed, and we’ve now improved our earnings for four consecutive quarters. Good cost control means that increased volumes feed through to our earnings. The recovery remains slow, and some uncertainty persists on many markets. Order intake in the second quarter was down somewhat, mainly due to the effects of the disposal of our vehicle operation in the US.

The IDC business area achieved new successes with continued brisk progress on all markets. IDC secured another major order in the Train segment from a new customer. Sales were up by 25% in the second quarter, while earnings more than doubled. IDC continued to expand its product portfolio in Westermo Edge Network Solutions. These products support an array of new industrial applications, and consolidate Westermo’s technological leadership. Product development and marketing initiatives have been upscaled to address a strong underlying market.

The IAS business area achieved some recovery in the second quarter. Operating profit was up somewhat, while sales and order intake decreased. The Nordic markets remain slow. Asia continues to recover, while the outlook in the rest of Europe varied. Sales increased somewhat in the US.

In the second quarter, the US operations of IAS were affected by the successful disposal of our vehicle operation, with annualized sales of some 70 MSEK. With a liquidity injection of nearly 50 MSEK, and a capital gain of over 30 MSEK, we strengthened our Balance Sheet and freed up resources for more initiatives in our core businesses—industrial operator terminals and industrial data communication.

The product range IAS launched last fall is achieving brisk growth, albeit from low levels. A new rugged operator terminal for demanding working environments was launched in the second quarter, and has attracted substantial market interest.”

INVITATION TO CONFERENCE CALL

Today a conference call will be held for press and analysts where President and CEO Fredrik Jönsson and CFO Anna Belfrage present the company and comment on the report.

Time:  Friday July 11, at 10.30 a.m. CET

To participate in the conference please dial:

From Sweden: +46 851999030
From UK: +44 2076602080

To access the presentation please use this link:
https://www.anywhereconference.com/?Conference=137352559&PIN=682230

The report and the presentation will be available at Beijer Electronics’ website www.beijergroup.com under Investors/Presentations. A recording of the conference call will also be available here after the event.

Welcome!

For more information please contact:
President and CEO, Fredrik Jönsson, tel 46 (0)40 35 86 10, mobile 46 (0)705 17 16 26
CFO, Anna Belfrage, tel 46 (0)40 35 86 53, mobile 46 (0)706 35 86 53

Beijer Electronics is a fast growing technology company with extensive experience of industrial automation and data communication. The company develops and markets competitive products and solutions that focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group present in 22 countries and sales of 1,376 MSEK 2013. The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.se

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