Bulten’s Q1 report 2015
Continued strong growth and improved earnings
– operating margin affected by currency revaluation
- Net sales reached SEK 713 million (581), up 22.7% on the same period last year.
- Operating earnings (EBIT) were SEK 36 million (33), which corresponds to an operating margin of 5.1% (5.7).
- Earnings after tax were SEK 29 million (23).
- Orders received amounted to SEK 660 million (632), up 4.4% on the same period last year.
- Cash flow from operating activities was SEK 49 million (-26).
- Earnings per share were SEK 1.44 (1.09).
- Net cash was SEK 95 million (-250) and the equity/assets ratio at the end of the period was 67.7% (51.9).
“Once more Bulten is reporting a period of strong sales growth, good orders received and high capacity utilisation. Growth was mainly driven by two extensive FSP contracts that went into production in Q1, 2014 and in the middle of Q2, 2014, and the supplementary order we received in the autumn. A general improvement in demand for light vehicles in Europe also had a positive effect on the Group’s net sales. During the quarter we signed several new, smaller contracts. Some of them concern the operation in Russia, a joint venture between Bulten and GAZ, and we therefore continue to broaden our customer base beyond the original GAZ business.
Bulten’s unit in Russia was also appointed by The Adam Smith Institute as Best Market Newcomer in 2014 on the Russian market for auto components in 2014, which is very pleasing and has generated a lot of positive exposure and publicity for Bulten within the Russian automotive industry. The prize was awarded at The Adam Smith Forum in Moscow in March 2015.
Earnings have improved, but our operating margin of 5.1% was however negatively affected by exchange rates when translating working capital at closing day rates, which does not mean a long-term impact on our profitability or competitiveness. Excluding currency effects of around SEK 13 million, our operating margin was 6.9%. Following the Group’s strong growth, we will continue to optimise flows to improve profitability during 2015.
Car sales in Europe (EU and EFTA) rose by 8.6% during the quarter according to ACEA’s statistics. We will continue to invest in logistics and existing production to meet good demand for our products and our FSP concept. We also see good potential to further increase our market shares and strengthen our market position.”
Tommy Andersson, President and CEO
Investors, analysts and media are invited to participate in the teleconference on April 29 at 14:30 CET when the report will be presented by Bulten’s President and CEO Tommy Andersson and the company’s EVP and CFO Helena Wennerström.
To participate, please call 5 minutes before the opening of the conference call to Sweden +46 8 5055 6453, UK +44 2030 092 455, US +1 855 228 3719. Code: 215394#.
Copies of the presentation will be available at www.bulten.com at approximately 30 minutes before start. The full report is attached to this press release.
A replay of the telephone conference is available until May 13, 2015 on the phone numbers Sweden +46 8-5055 6444, UK +44 2033 645 943, USA +1 866 286 6997. Code: 363242#.
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: email@example.com
Bulten discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13:30 CET on April 29, 2015.
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 specialist, customized fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. Bulten AB (publ):s share is listed on Nasdaq Stockholm. Read more at www.bulten.com.