Bulten sees further acquisitions as key to its strategy for profitable growth
The Board of Directors of Bulten AB (publ) has decided to retain the financial targets set at the beginning of 2020 up to 2024. To achieve these targets, acquired growth primarily in North America, along with continued increased market share in and outside of the automotive sector will be important parts of the strategy.
“We have a clear ambition to grow both organically and through acquisitions. With the addition of PSM International in 2020, we have established a strong platform for growth in Asia. The goal now is to continue our growth journey, for example by focusing on acquisitions in North America. With further acquisitions, a continued focus on increasing our market share within and outside of the automotive industry, and also through our strong sustainability offering, our target remains to achieve sales of SEK 5 billion by 2024,” says Anders Nyström, President and CEO.
Bulten’s financial targets for the period up to 2024:
- Sales of SEK 5 billion in 2024
- This equates to a compound annual growth rate (CAGR) of 10%, both organic and through acquisitions.
- Operating margin (EBIT) > 8%
- Return on capital employed (ROCE) > 15%
The above financial targets were announced in February 2020. Since then Bulten, like other companies and industries, has been adversely affected by COVID-19 and its consequences. Despite the prevailing situation, the company has managed to increase its sales and take market share.
Priority focus area:
- Increased profitability
- Offer existing and new customers added value through a consolidated Full Service Provider concept – FSPs – with a clear sustainability offering, in which Bulten helps to reduce the environmental footprint of its customers’ supply chain.
- Complete the company’s new surface treatment plant in Poland to increase the productivity, as well as to reduce capital tied up and the environmental footprint.
- Continued profitable growth in the automotive industry
- Take advantage of megatrends in the automotive industry, and increase Bulten’s presence among new players in that industry.
- Expand sales to suppliers in the automotive industry.
- Growth in industries outside the automotive sector
- The aim is for industries outside of the automotive sector, such as consumer electronics, agricultural machinery and energy production, to represent approximately one-fifth of Bulten’s sales in 2025.
- Further acquisitions primarily in North America
- The aim is for North America to represent approximately one-fifth of Bulten’s sales in 2025.
- Reduce greenhouse gas emissions
- Reduce Bulten’s own greenhouse gas emissions (scope 1 & 2) with 30% up to 2030 and with 2019 as base year.
- Reduce greenhouse gas emissions in the supply chain* with 30% per ton of sold product up to 2030 and with 2019 as base year.
*Raw material (steel wire and other metal raw materials), externally threaded traded products, plating service, purchased transports incoming material and purchased transport internal. All of these are included in Bulten’s so-called scope 3.
Bulten’s digital Capital Markets Day 2022
At Bulten’s digital Capital Markets Day 2022, which will be held today, an update will be given on the company’s strategy for sustainable growth, financial development and focus areas. Presentations will be held by Anders Nyström, President and CEO, Markus Baum, Chief Commercial Officer, Emmy Pavlovic, SVP Technology and Innovation, Fredrik Bäckström, Chief Operating Officer, Claes Lindroth, SVP Purchasing and Quality, and Anna Åkerblad, CFO.
Date: Tuesday, February 22, 2022
Time: 13:30-16:00 (CET)
Follow the webcast live via the link: https://tv.streamfabriken.com/bulten-cmd-2022
The presentations will be held in English. It will be possible to submit questions in writing via the webcast. A recording from the event will be available afterwards at www.bulten.com.
For additional information, please contact:
Ulrika Hultgren, SVP Corporate Communications and IR
Phone: +46 727 47 17 58
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 contact person set out above, at 09:00 CET on 22 February 2022.
Bulten Group is a leading global manufacturer and supplier of fasteners to the automotive industry, as well as other customer groups such as consumer electronics and home appliances. The offering extends from a wide range of standard products to specially adapted fasteners. With Bulten’s Full Service Provider concept, customers can entrust all their fastener needs to the company, including development, sourcing, logistics and service. Bulten was founded in 1873, has approximately 1,700 employees in 16 countries and is headquartered in Gothenburg, Sweden. Net sales in 2021 totaled SEK 3,730 million. Since 2020, PSM International has been a part of Bulten. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at ww.bulten.com.