Bulten’s Q4 report 2017

2018-02-08Press release

New phase of growth begins with increased sales and continued strong order bookings.

FOURTH QUARTER

  • Net sales reached SEK 740 million (674), an increase of 9.8% on the same period last year.
  • Operating earnings (EBIT) were SEK 55 million (52), which corresponds to an operating margin of 7.5% (7.7).
  • Earnings after tax were SEK 47 million (37).
  • Order bookings amounted to SEK 839 million (744), an increase of 12.8% on the same period last year.
  • Cash flow from operating activities was SEK 2 million (122).
  • Earnings per share were SEK 2.26 (1.82).
  • Bulten has taken a decision to make an investment in a new heat treatment plant in Hallstahammar worth around SEK 45 million.
  • Bulten is preparing for a change in CEO by 2019 at the latest due to the retirement of the current CEO.

JANUARY – DECEMBER

  • Net sales reached SEK 2,856 million (2,676), an increase of 6.7% on the same period last year.
  • Operating earnings (EBIT) were SEK 210 million (200), which corresponds to an operating margin of 7.4% (7.5).
  • Earnings after tax were SEK 159 million (146).
  • Order bookings amounted to SEK 3,015 million (2,717), an increase of 11.0% on the same period last year.
  • Cash flow from operating activities was SEK 58 million (351).
  • Earnings per share were SEK 7.98 (7.27).
  • Net debt was SEK 49 million (net cash of 30) and the equity/assets ratio at the end of the period was 66.8% (68.9).
  • The Board of Bulten AB proposes to the AGM that the dividend be SEK 3.75 per share (SEK 4.50 in 2016, of which SEK 3.50 was an ordinary dividend and SEK 1.00 an extra dividend).

CEO’S COMMENTS

“Bulten has entered a new phase of growth, with increases during the quarter in net sales of 9.8% and in continued strong order bookings of 12.8%, both compared with the same period last year. The growth stems from successive increases in volumes following model changes as well as from the start of deliveries that are part of the previously announced contract worth EUR 20 million annually. Generally good demand for cars in Europe also had a positive effect.

Bulten’s operating margin was 7.5% during the quarter, helped partly by currency effects but also negatively influenced by higher global market prices for steel and other metals. Consequently, we exceeded our target for operating margin and strengthened our profitability on both the quarterly and annual basis, while also improving earnings per share.

Bulten’s financial position remains strong. To meet increased demand for our products and the rise in volumes connected to signed contracts, we decided during 2017 to invest in new capacity. The planned supplementary plant for production and distribution of fasteners in Poland is expected to be completed in 2019 and will become one of Europe’s leading fastener facilities.

With previously signed contracts that are worth around half a billion Swedish kronor at the full production rate expected in 2020, the planned investment in capacity and the strong financial position, Bulten is prepared for this new phase of growth. We also judge that we have continued good prospects for winning new business.”

Tommy Andersson, President and CEO

Investors, analysts and media are invited to participate in the teleconference on February 8 at 15:30 CET. The report will be presented by Tommy Andersson, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q4-2017. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

SE: +46856642664

UK: +442030089809

US: +18558315945

For further information, please contact:

Tommy Andersson, President and CEO
Tel: + 46 31-734 59 00

Kamilla Oresvärd, Senior Vice President Corporate Communications
Tel: +46 70-520 59 17, e-mail: kamilla.oresvard@bulten.com

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the Senior Vice President Corporate Communications set out above, at 13:30 CET on February 8, 2018.

Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,300 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com

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