Beijer Electronics AB Interim Report January — September 2010: Continued Growth and Profits Double in the Third Quarter
- Order intake up 19% to 945.6 MSEK (792.3)
- Sales increased by 10% to 896.1 MSEK (812.7)
- Operating profit doubled to 89.4 MSEK (43.7)
- Profit after tax was 63.3 MSEK (27.5)
- Earnings per share were 9.78 SEK (4.26)
- Order intake up 13% to 287.5 MSEK (254.1)
- Sales increased by 20% to 300.7 MSEK (250.3)
- Operating profit doubled to 34.7 MSEK (17.5)
- Profit after tax was 23.4 MSEK (13.2)
Comments from Fredrik Jönsson, CEO
"The positive trend sustained in the third quarter, when Beijer Electronics posted continued good order intake growth. This high order intake has progressively fed through to higher sales growth in the year. Sales in the third quarter were up by 20%. Simultaneously, operating profit doubled, and an operating margin of over 11% was achieved. The strong profit gains are explained by higher volumes and continued good cost control. Beijer Electronics secured five major OEM accounts in the quarter.
The HMI Products business area is continuing to achieve healthy growth. Sales in the third quarter were this business area’s best to date, with an operating margin of over 16% achieved. We are seeing continued strong growth in China and the rest of Asia, gains in the US and a recovery in Germany. Access to components looks better, but still remains a worry in terms of coping with increasing demand.
The IDC business area also continued to improve with an operating margin of over 16% in the quarter. The acquisition of 37% of the Taiwanese company Korenix has already produced positive results. IDC is also making an aggressive initiative on the US market, starting up a sales unit in the US in the third quarter. To some extent, the component shortage limited invoicing in the period.
The Automation business area achieved a trend-break in the quarter. Sales were up 9% and operating profit improved significantly year on year. Sweden is progressing positively and Finland took a sharp upturn. Weak progress in the marine sector continued to affect Norway, but this business has good profitability. But sales in Denmark remained at low levels.
In the first three quarters, the group’s profit after tax was just over 63 MSEK, nearly 60% higher than the profit for the full year 2009. Accordingly, the outlook for the full year 2010, with significantly higher sales and markedly better profits compared to 2009, is reiterated."
Conference Call Invitation
Today at 2.00 p.m. CET a conference call for analysts and journalists will be held. President and CEO, Fredrik Jönsson, and CFO, Lennart Mauritzson, presents the company and comments the report.
To participate in the conference, please dial:
from Sweden: +46 (0)8 506 269 04
from the UK: +44 (0)207 108 6205
During the conference call a presentation will be held. To access the presentation, please use this link:
The presentation will be published on the Beijer Electronics web site, www.beijerelectronics.se, under Investor Relations/Presentations, where a recording of the conference call also will be posted after the event.
For more information, please contact:
President and CEO, Fredrik Jönsson,
tel +46 (0)40 35 86 10, mobile +46 (0)705 17 16 26
CFO, Lennart Mauritzson,
tel +46 (0)40 35 86 53, mobile +46 (0)705 52 05 57
Corporate Communications, Katarina Erichs Emilson,
tel +46 (0)40 35 84 96, mobile +46 (0)703 35 84 96
Beijer Electronics is a fast growing technology company with extensive experience of industrial automation and robust data communication, developing and marketing competitive products and solutions with focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group present in 16 countries and sales of 1.1 bn SEK 2009. The company is listed on the Nasdaq OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE.