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Indutrade AB: Interim report 1 January-31 March 2014

1 JANUARY - 31 MARCH 2014

· Order intake rose 7% to SEK 2,349 million (2,198). For comparable
units, order intake decreased by 1%.

· Net sales rose 10% to SEK 2,250 million (2,051). The increase for
comparable units was 1%.

· Operating profit before amortisation of intangible non-current
assets attributable to acquisitions (EBITA) rose 17% to SEK 224
million (191), corresponding to an EBITA margin of 10.0% (9.3%).

· Profit after tax rose 18% to SEK 126 million (107).
· Earnings per share were SEK 3.15 (2.68).
· Cash flow from operating activities amounted to SEK 90 million
(31). During the last 12-month period, cash flow per share was SEK
22.95 (11.93).

CEO's message
The cautious optimism we saw after the fourth quarter of 2013 remains.
The trend of market segments and countries beginning to show growth
during the second half of 2013 continued into the first quarter of
2014. However, order intake in the energy segment was considerably
lower than in the same period in 2013, and the Finnish market had
continued weak performance. As a result, despite favourable
development in most markets, organic growth at the Group level did
not materialise.

Other companies and markets experienced positive development in order
intake. For Switzerland, which had very strong growth in 2013, order
intake has improved further into 2014. It is gratifying to note that
all of the acquisitions made during the last 12 months have made a
contribution to the Group's earnings improvement. The acquisitions
have been spread across a number of countries, including Ireland, the
UK, the Netherlands, Switzerland and Sweden. The acquisitions have
strengthened product areas in which we are already established, while
we also took a step into a new one - the construction sector in the
UK with Verplas, which we acquired in November 2013. This is an
example of a customer segment that will remain intact and not be
affected by the relocation of industries abroad.

Another similar example is the company Svenska Geotech AB, which we
acquired during the first quarter of this year. Its customers work
with civil engineering projects in the Nordic countries. We will
continue to acquire companies with customers in the manufacturing
industry, but as before we will weigh in the risk of the companies'
customers relocating to low-cost countries.

First quarter
Order intake during the quarter exceeded net sales by 4% and was 7%
higher than in the corresponding period in 2013. Three of the five
business areas had higher order intake for comparable units than the
corresponding period a year ago. The business areas that had lower
order intake during the quarter were Engineering & Equipment, which
is active in the Finnish market, and Special Products, which relies
heavily on the energy sector.

In the Nordic countries, development was weak particularly in Finland,
where Engineering & Equipment has most of its business, while Denmark
and Norway were stable. Sweden experienced positive development, with
growth in most segments. Outside the Nordic countries, our operations
in Switzerland, the UK and Ireland continue to show strong growth.
Benelux and Germany are also experiencing positive development.

Net sales during the past quarter grew 10%. Excluding completed
acquisitions and translation effects, the sales increase would have
been 1%.

Flow Technology had higher order intake during the period that was in
line with the latter part of 2013. The increase is spread over most
segments in the business area. Earnings for the period improved
slightly despite lower sales than the same period a year ago.

Order intake for Fluids & Mechanical Solutions grew organically by
13%, in line with the preceding quarter. Higher sales contributed to
a slight earnings improvement.

Industrial Components continues its strong performance. Order intake
grew 12% during the quarter. Growth was both organic and
acquisition-driven. Most companies showed growth, particularly in the
med-tech, mechanical components and chemical products for the
engineering industry segments. In short, we are seeing a positive
trend in Sweden's engineering industry. The earnings improvement for
the quarter was 23%, owing to larger volumes for comparable units and
favourable performance for newly acquired businesses.

Special Products had lower order intake for comparable units than the
corresponding period a year ago. This is attributable entirely to the
energy segment. Order intake, which is project-steered, was very
favourable a year ago. Despite the low level of order intake, the
order backlog is level with the same period a year ago. Most other
businesses in the business area posted higher order intake. Invoicing
rose by 24% and earnings by 29%, with a large share of growth derived
from acquisitions.

The Group's gross margin remains stable at 34.0% (33.8%), which is
level with the full year 2013. Over time, the Group has maintained a
very stable gross margin.

The EBITA margin was 10.0% for the quarter (9.3%), which is in line
with the Group's target of a minimum 10% EBITA margin over a business

Two acquisitions were carried out during the quarter: AP Tobler AG in
Switzerland, which specialises in surface treatment of equipment for
the pharmaceutical industry, and Svenska Geotech AB in Sweden, which
supplies products for the civil engineering industry.

New market anxiety has arisen recently from the Ukraine crisis. How it
plays out remains to be seen. Thus far the positive market trend
seems to be continuing despite the crisis. Fundamentally the
conditions exist for a continuation of this trend.

Johnny Alvarsson, President and CEO

The report will be commented upon as follows:

· through a conference call/webcast today at 3 p.m. at the following
Partciplants call SE +46 8 505 564 78, UK +44 203 1940 550 or US + 1
8552 692 606.

· Via a videotaped version at the following link:
For further information, please contact: Johnny Alvarsson, President
and CEO: 46 70 589 17 95

About Indutrade
Indutrade markets and sells components, systems and services with a
high-tech content within selected niches. Indutrade's business is
distinguished by

- high-tech products for recurring needs
- growth through a structured and tried-and tested acquisition

- a decentralised organisation characterised by an entrepreneurial

The Group is organised into five business areas: Engineering &
Equipment, Flow Technology, Fluids & Mechanical Solutions, Industrial
Components and Special Products. Indutrade's sales totalled SEK 8,831
million in 2013, generating operating income of SEK 990 million
before depreciation of intangible assets. Indutrade is listed on the
Nasdaq OMX Stockholm.


Författare Hugin

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