Interim Report January - June 2009
- Net sales were SEK 562.4 m (650.1).
- Operating profit before non-recurring expenses was SEK 33.7 m (57.2), profits were then charged with non-recurring expenses of SEK 7.5 m.
- Profit after tax amounted to SEK 14.3 m (35.8).
- Earnings per share after tax were SEK 2.16 (5.26).
- Rationalization package implemented, to give savings of SEK 50 m in the year.
- New collaboration agreement with Mitsubishi Electric for Germany.
- Sustained sharp focus on product development and launch of a new generation of Industrial routing switch in IDC.
Comments from Fredrik Jönsson, CEO
“Clearly, the global economic crisis and events in the first half-year 2009 have affected our business. Order intake in the second quarter was comparable with the first quarter. Second-quarter sales were seven per cent down on the first quarter, however significantly lower than the second quarter of the previous year.
Late in the period, we saw a stabilization on the market. Most positive was the IDC business area increasing its order intake, with growth of 32 per cent in the second quarter. Despite lower sales and profits, I remain fairly satisfied with our results and the numbers for the first half-year, considering the substantial volume losses. We have compensated for these volume losses through the early implementation of a cost rationalization package, which cut our costs by SEK 24 m in the half-year, with SEK 15 m of this in the second quarter.
The rationalization package implemented in the second quarter resulted in SEK 7.5 m being charged to profits in the period. We will reduce our overheads by at least SEK 50 m in the year. Our judgment is that the company is not merely correctly adapted to current volumes, but also to achieve good profitability going forward.
The group’s three business areas have all worked hard on savings and rationalization. The Automation business area has secured new customers in its priority segments of water treatment and real estate automation. HMI Products is noting a tendency towards increased sales in the second half-year, and has signed an important collaboration agreement with Mitsubishi Electric inGermany, whereby Beijer Electronics will start selling Mitsubishi Electrics’ industrial automation product range on the German market. Thereby, Beijer Electronics will have the same broad offering on the German market as we already do on the Nordic markets, which should result in growing volumes. IDC achieved all-time high order intake in the second quarter, and the outlook for forthcoming quarters is clearly positive. IDC increased its order intake by eight per cent in the first half-year, and improved operating profit by 30 per cent.
Overall, we have acted quickly and effectively in terms of modifying our cost base to lower demand from the market, and we judge that we are well positioned to benefit from a market turnaround. We have retained our sharp focus on product development in HMI and IDC. We have also rationalized our sales organization to better exploit the opportunities on the market. We are convinced that the group will emerge stronger from the economic crisis with higher long-term profitability.”