Interim Financial Report
Summary of 2019
After a strong start of the year, where the actions taken to improve profitability showed result in the second half of the year, volumes dropped as expected due to lower demand from our customers. The slowdown that started in Q3 2019 continued and had a significant impact on volumes during Q4 seems to have flattened out. The outlook for 2020 currently looks stable with even some positive signals for the first half of the year.Regarding the recent development of the Corona virus (COVID-19) we have so far not seen any significant effect on our business or our customer demand. However, this may change rapidly, and we are monitoring the situation closely.
We are now taking huge steps in the ramp up in our new passenger car projects. We will accelerate during 2020 in order to reach full capacity at the end of the year. The investments and efforts are expected to reach full year run rate effects during the first quarter 2021.
Summary of the fourth quarter of 2019
- Net Sales amounted to SEK 361,0 million (488,7)
- Adjusted operating profit before depreciation (Adjusted EBITDA) decreased to SEK 25,9 million (34,7)
- Earnings before tax (EBT) decreased to SEK -12,8 million (0,0) 1
- Profit margin before tax (EBT%) amounted to -3,5% (0,0%) 1
- Cash flow from operating activities decreased to SEK 66,6 million (122,0) 1
- Net income for the period decreased to SEK -6,3 million (9,1) 1
Summary of 2019
- Net Sales amounted to SEK 1 739,7 million (1 818,1)
- Adjusted operating profit before depreciation (Adjusted EBITDA) increased to SEK 118,2 million (110,5)
- Earnings before taxes (EBT) decreased to SEK -17,9 million (-17,6) 1
- Profit margin before tax (EBT%) amounted to -1,0% (-1,0%) 1
- Cash flow from operating activities increased to SEK 152,7 million (145,0) 1
- Net income for the period decreased to SEK -14,2 million (-6,6) 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.
Henrik Fagrenius, President & CEO
Telephone: +46 (0)72 232 41 64
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 200 employees. LEAX has operations in Köping, Falun and Falköping 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 2019 amounted to approx. 1.7 billion SEK.