Interim Financial Report

January – September 2019

As expected, the third quarter of 2019 has been impacted by lower revenues due to vacation period at our customers. The positive trend on profitability is continuing in our underlaying business. As expected, this quarter has been impacted with extra cost for the start of production for the large projects..

The outlook for the fourth quarter looks weaker than previous quarters. We see a slowdown from very high volumes and are taking measures to adapt our capacity and cost structure. The ramp up of the large projects will mitigate the slowdown and LEAX Group has now developed world class manufacturing technologies in order to meet the demand of silent gears to electrified vehicles. We are well positioned for the transition to more electrified vehicles.

Summary of the third quarter of 2019

  • Net Sales amounted to SEK 377,4 million (393,9)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) decreased to SEK 11,8 million (19,7)
  • Earnings before tax (EBT) decreased to SEK -26,4 million (-16,7) 1
  • Profit margin before tax (EBT%) amounted to -7,0% (-4,2%) 1
  • Cash flow from operating activities increased to SEK 32,3 million (-8,7) 1
  • Net income for the period decreased to SEK -26,0 million (-10,7) 1

Summary of the first nine month of 2019

  • Net Sales amounted to SEK 1 378,6 million (1 329,4)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) increased to SEK 92,3 million (75,8)
  • Earnings before taxes (EBT) increased to SEK -5,1 million (-17,6) 1
  • Profit margin before tax (EBT%) amounted to -0,4% (-1,3%) 1
  • Cash flow from operating activities increased to SEK 86,1 million (23,0) 1
  • Net income for the period increased to SEK -8,0 million (-15,7) 1

1 2019 has been affected by IFRS 16 Leases, while 2018 is unchanged and not restated. Please see Note 3 IFRS 16 Leases for further information regarding IFRS 16.

The information was submitted for publication, through the agency of the contact person set out above, on November 7, 2019 at 09:00 CEST.

Contact details:
Henrik Fagrenius, President & CEO
Telephone: +46 (0) 221 346 89

E-mail: henrik.fagrenius@leax.com

About LEAX:
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1,300 employees. LEAX has operations in Köping, Falun, Falköping and Tidaholm in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The company is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger cars, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The group’s sales for 2018 amounted to approx. 1.8 billion SEK.