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Interim report 1 January-30 September 2011

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1 JANUARY – 30 SEPTEMBER 2011

  • Net sales rose 17% during the period to SEK 5,836 million (4,981). The increase for comparable units was 9%.
  • Operating profit before amortisation of intangible assets attributable to acquisitions (EBITA) rose 23% to SEK 666 million (540), and the EBITA margin was 11.4% (10.8%).
  • Profit after tax rose 21% to SEK 385 million (318).
  • Earnings per share for the period were SEK 9.63 (7.98). Earnings per share for the last twelve-month period were SEK 11.83.

THIRD QUARTER 2011

  • Net sales rose 16% during the third quarter to SEK 2,005 million (1,732). The increase for comparable units was 11%.
  • Operating profit before amortisation of intangible assets attributable to acquisitions (EBITA) rose 20% to SEK 245 million (205), and the EBITA margin was 12.2% (11.8%).
  • Profit after tax rose 24% to SEK 145 million (117).
  • Earnings per share for the period were SEK  3.63 (2.95).

CEO’s message 

General
The turbulence in the financial world has not had an impact on Indutrade's market thus far. However, we have been careful to recruit new employees in the companies that we believe may experience lower activity in the coming year. The paradox at the moment is that despite all of the signs that industry is headed for a downturn, many manufacturers of the products that Indutrade supplies are experiencing a shortage of capacity.

Third quarter
During the last quarter, the Group's invoicing exceeded SEK 2 billion for the second quarter in a row. Order intake for the quarter also exceeded SEK 2 billion. Organic growth of order intake was 15%, with total growth of 25%.

The economic downturn that many indicators point to has not yet evidenced itself in the Group's order intake figures. However, volumes for heavy vehicles and the general engineering industry are levelling out. 

On the contrary, one segment that is growing is energy, which gradually will be reflected in net sales. Many new power plants are being planned and built around the world, especially in markets outside Europe, including the USA, the Middle East, South America and Asia. Indutrade has a number of companies that supply components to this industry. All types of power generation are represented among our customers, including gas plants, wind farms, solar power plants, waste combustion power plants and nuclear power plants.

Margin
The gross margin rose during the quarter to 33.4% (32.5%). This is a measure of our companies' ability to maintain a relevant price level. The EBITA margin increased to 12.2% (11.8%), which can be credited to better coverage of fixed costs through higher volumes. 

The Flow Technology business area posted its best quarterly performance ever during the quarter with an EBITA margin of 13.6% (9.3%). Few major projects, improved earnings in the marine segment and systematic work on improving the margin were contributing factors. 

The Special Products business area had an EBITA margin of 14.6% (17.3%). The lower margin compared with the same period in 2010 is mainly attributable to lower invoicing in the energy sector.      

Acquisitions
During the quarter, Indutrade made a few, small complementary acquisitions in Switzerland, Finland and the Netherlands. After the end of the period, two companies were acquired in Sweden. One of these companies, AD MediCal, strengthens Indutrade's position in medical technology.

Outlook
The future is once again unusually uncertain – the last time we were in this situation was autumn 2008. Throughout our 33 years at Indutrade we have shown that we have a good ability to parry sharp fluctuations in the economy. 

Johnny Alvarsson, President and CEO

This report will be commented upon as follows:

         For further information, please contact:
         Johnny Alvarsson, President and CEO, phone +46 70 589 17 95.

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