Interim report January-June 2018: Volumes still strong, and earnings improve
- Order intake rose by 21% to 371 MSEK (307).
- Net sales increased by 19% to 361 MSEK (304).
- EBIT was 18.0 MSEK (6.5).
- Profit after tax was 10.5 MSEK (0.8).
- Earnings per share were 0.36 SEK (0.02).
- Order intake rose by 23% to 769 MSEK (625).
- Net sales increased by 17% to 698 MSEK (594).
- EBIT was 36.0 MSEK (9.0).
- Profit/loss after tax was 20.1 MSEK (-3.0).
- Earnings per share were 0.70 SEK (-0.13)
COMMENTS FROM CEO PER SAMUELSSON
“In the second quarter, Beijer Electronics Group consolidated its positive trend. Order intake and sales were up sharply in the period. All the Group’s three business entities and all regions are making a contribution and are in good growth. After our adjustment process over recent years, and various marketing, sales and product development initiatives, we have created stability within our organization, which is now starting to produce tangible results.
In the current phase, we have prioritized growth to achieve our long-term targets. Growth generates results, and to date, we have delivered as planned. Sales were up by 17% in the first half-year, which is having a big impact on our earnings. This is evidence of the pay-off we gain from increased volumes. In combination with better gross margins and control of our overheads, our EBIT margin expanded from 1.5% to just over 5% in the first half-year, which is in the right direction towards a margin of at least 10%.
The Beijer Electronics business entity is providing a significant part of the Group’s recovery, which I’m delighted about, considering the major restructuring it has undergone. To date, Beijer Electronics has succeeded in coping with an altered market outlook, developed a new product range that has been well received on the market, rationalized its production and logistics, implemented a new marketing and sales organization, is addressing new segments and has won new customers. The effects are now apparent in high growth of order intake and sales, and significantly better EBIT in the first half-year and second quarter. As our largest business entity, Beijer Electronics is an important part of the Group’s long-term value creation.
The Westermo business entity continued to make strong progress, with growth of some 20% in the second quarter, and EBIT almost doubling. This progress demonstrates Westermo’s competitiveness on a high-growth market. But simultaneously, this growth is presenting the business entity with challenges, because production capacity needs to be expanded during the current global shortage of electronic components. This may temporarily impact deliveries and cause fluctuations in earnings between quarters, albeit without altering the long-term positive trend.
The Korenix business entity secured a significant order of 5 MSEK from the Taiwan Department of Transportation, for wireless communication solutions in the Smart City concept for Taipei city buses. The deal also includes Beijer Electronics HMIs. We view this deal as evidence that Korenix’s new organization and improved strategy are steps in the right direction. Korenix did achieve some growth in the second quarter, but an unfavorable product mix and continued marketing and product development initiatives meant that the entity did report a loss. But Korenix is focused on recovery in 2018, and aims to achieve profitability in 2019.
For the Group overall, we are basically following the plan we have set and our new strategy is generating tangible positive effects. I’m satisfied that all three business entities are now working actively on solutions for the burgeoning market for the Industrial Internet of Things (IIoT). Sales and earnings in the first half-year were up sharply on the corresponding period of 2017. We think that again in the second half-year, the Group can increase sales and earnings on the corresponding period of 2017”.
INVITATION TO CONFERENCE CALL
Today, a conference call will be held for press and analysts, where President and CEO Per Samuelsson and Executive VP and CFO Joakim Laurén present the company and comment on the report.
Time: Friday July 13, at 2.00 p.m. CEST
To participate in the conference please dial:
From SE: +46851999031
From UK: +442030089804
To access the presentation please use this link:
The report and the presentation will be available at Beijer Electronics Group’s website www.beijergroup.com. A recording of the conference call will also be available here after the event.
For more information please contact:
President and CEO, Per Samuelsson, tel 46 (0)40 35 86 10, mobile 46 (0)708 58 54 40
Executive VP and CFO Joakim Laurén, tel 46 (0)40 35 84 96, mobile 46 (0)703 35 84 96.
This information is such that Beijer Electronics Group AB (publ) is required to disclose in accordance with Swedish Securities Market Act (2007:528). The information was submitted for publication through the agency of the contact persons set out above at 13:00 CEST, July 13, 2018.
Beijer Electronics Group is a high-tech innovator active in smart automation and networks. The Group’s open software, hardware and IIoT solutions help customers optimize processes and create reliable secure communication, complete with leading-edge user experiences. Since its start-up in 1981, Beijer Electronics Group has evolved into a multinational group with sales 1.2 billion SEK 2017.
The company is listed on the NASDAQ OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE. www.beijergroup.com