Gränges' Year-end Report January-December 2014
Improved earnings and stable volume in fourth quarter
Fourth quarter 2014
• Sales volume reached 37.7 ktonnes (37.6).
• Net sales totalled SEK 1,217 million (1,065), an increase of 14.3%.
• Adjusted operating profit amounted to SEK 103 million (84), corresponding to an adjusted operating margin of 8.4% (7.9).
• Operating profit amounted to SEK 97 million (230). Operating profit for the corresponding quarter last year included insurance compensation of SEK 136 million.
• Profit for the period was SEK 89 million (162). Earnings per share amounted to SEK 1.19 (2.17).
• Sales volume reached 160.0 ktonnes (158.6), an increase of 0.9% compared to the previous year.
• Net sales totalled SEK 4,748 million (4,642), an increase of 2.3%.
• Adjusted operating profit amounted to SEK 463 million (371), corresponding to an adjusted operating margin of 9.7% (8.0).
• Operating profit amounted to SEK 422 million (456).
• Profit for the period was SEK 319 million (309). Earnings per share amounted to SEK 4.27 (4.14).
• Gränges has a sound financial position. At 31 December 2014, the equity/assets ratio amounted to 47.9% and net debt corresponded to 1.2 times adjusted EBITDA (on a rolling 12-month basis).
• The Board of Directors proposes a dividend of SEK 1.50 per share.
Comments from Gränges CEO Johan Menckel:
“Gränges performed well during the fourth quarter with a sales volume in line with the previous year and improved earnings. Adjusted operating profit rose to SEK 103 million, corresponding to an adjusted operating margin of 8.4%. Continous improvements and more efficient production, in combination with favourable foreign exchange rates contributed positively and offset higher central costs as a result of that we now are listed and an impairment loss on assets in Finspång.”
“The global vehicle production weakened at the end of 2014. We expect this trend to continue during the first half of 2015. Somewhat improved growth figures are expected during the second half of the year.”
“Overall, we still feel comfortable ahead of 2015. We have a leading global position and a clear growth strategy where Asia and North America are prioritised geographical areas. Our aim is to secure and further strengthen our position with continued good profitability”, says CEO Johan Menckel.
Webcasted telephone conference
On Wednesday, 4 February 2015 at 10.00 CET, CEO Johan Menckel and CFO Oskar Hellström will present Gränges’ year-end report for January-December 2014 via a webcasted telephone conference. The webcast can be accessed on Gränges website www.granges.com/investors. To take part in the telephone conference, please call +46 851999030 (Sweden), +44 2076602077 (United Kingdom) or +1 8552692607 (USA).
The information in this year-end report is such that Gränges must disclose pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on Wednesday, 4 February 2015 at 07.30 CET.
Gränges is a leading global supplier of rolled products for the brazed aluminium heat exchanger industry. The Group develops, produces and markets advanced materials that enhance both production economy during the customer manufacturing process as well as the performance of the final products, the brazed heat exchangers. Gränges has its headquarters in Stockholm, Sweden, and operates in three geographical regions: Europe, Asia and the Americas. The company has production, research and development facilities in Finspång, Sweden, and Shanghai, China, with total annual capacity of approximately 210,000 metric tonnes. Gränges was founded in 1896 and the company started its present operations in 1972 when it started to develop material for brazed heat exchangers. Gränges has some 950 employees and net sales in 2014 totalled approximately SEK 4 748 million. For more information about Gränges, you are welcome to visit www.granges.com.