LEAX Interim Financial Report Q2 2022
Steady Performance during Uncertain Times
The second quarter in summary
• Net Sales increased to SEK 539.8 million (466.2)
• Operating profit decreased to SEK 24.8 million (25.7)
• Earnings before tax (EBT) increased to SEK 21.7 million (16.7)
• Net income for the period increased to SEK 22.9 million (17.0)
• Cash flow from operating activities amounted to SEK 36.3 million (27.3)
The first half of the year in summary
• Net Sales increased to SEK 976.6 million (937.4)
• Operating profit decreased to SEK 19.0 million (50.8)
• Earnings before tax (EBT) decreased to SEK 13.3 million (32.6)
• Net income for the period decreased to SEK 15.6 million (28.8)
• Cash flow from operating activities amounted to SEK 68.7 million (57.9)
Comments from the Group President and CEO, Tony Nicol;
The sales increase in the quarter was mainly driven by strong demand in electrification in Passenger cars and within General industry markets.
Sales to our largest customer end market, Commercial Vehicles, was slightly up relative to this period last year as some issues continue to persist within our customers’ supply chains. Whilst the situation with global component shortages has slightly improved, ongoing disruptions are still causing disturbances, inefficient capacity utilisation and driving higher costs in our production facilities.
Our second quarter operating profit was negatively impacted by this inefficiency, and also by costs related to raise new equity and activity related to execution of our group strategy. Our underlying operating profitability remains positive apart from this and the increasing global inflationary pressures. Business activity remains near an all-time high and requests for cooperation from existing and new customers were at very strong levels throughout the quarter. Our strategic shift into new customer end markets and higher engineering content as well as our continued excellent operational performance for our existing customers has directly contributed to this increase in activity.
There remains an ongoing pandemic, a global staffing crisis in the air travel industry, the tragic situation in the Ukraine, global energy and food crises and high inflation.
These are unprecedented times, but we are pleased with our performance within the period considering the challenges we have faced.
Even within an environment of global uncertainty our quarter was highlighted by the equity investment that AMF has made in LEAX. We are proud and encouraged that AMF has joined our team and supports our vision.
Contact
Tony Nicol, Group President and CEO
Telephone: +44 (0)755 728 67 67
E-mail: tony.nicol@leax.com
About LEAX
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 Group is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger car industry, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group had a turnover of SEK 1.7 billion in 2021.