Financial Statement 2014: Positive Development of Sales and Profit–Record Year for IDC
- Order intake increased by 2% to 358.7 MSEK (352.4), or 10% adjusted for the sale of the Vehicle division.
- Net sales were 365.4 MSEK (366.3). Adjusted for the divested Vehicle division, this represents an increase of 9%.
- Operating profit was 13.9 MSEK (20.0) including non-recurring costs of 12.9 MSEK (5.6). Excluding non-recurring costs, profit was 26.8 MSEK (25.6).
- Profit after tax was 8.9 MSEK (8.5).
- Earnings per share were 0.47 SEK (0.43).
- Program of measures for the IAS business area announced in the period.
Full Year 2014
- Order intake was 1,398.2 MSEK (1,401.6), or 4% adjusted for the sale of the Vehicle division.
- Net sales rose by 2% to 1,401.6 MSEK (1,376.2). Adjusted for the divested Vehicle division, this represents an increase of 6%.
- Operating profit increased to 113.6 MSEK (87.4) including a capital gain of 32.9 MSEK and nonrecurring costs of 23.7 MSEK (5.6). Excluding the capital gain and non-recurring costs, profit was 104.4 MSEK (93.0).
- Profit after tax amounted to 62.7 MSEK (44.4).
- Earnings per share were 3.24 SEK (2.32).
- The Board of Directors proposes a dividend of 1.25 SEK per share (1.25).
- Major strategic initiative in the IDC business area.
COMMENTS FROM ACTING CEO ANNA BELFRAGE
“Overall, Beijer Electronics made more positive progress in the fourth quarter. Order intake and sales increased by some 10%, adjusted for the divested Vehicle division in the US. Adjusted for non-recurring costs, operating profit also increased somewhat in the quarter. As previously reported, profit was charged with restructuring expenses. Additionally, profit was charged with non-recurring costs totaling 7 MSEK, for a terminated customer project, and a fire at a supplier.
The IDC business area continued to perform very convincingly, increasing order intake and sales by about 20%, and increasing profit by over 30%. So overall, 2014 was a record year for IDC in terms of sales and profits. Sales were nearly half a billion Swedish kronor, and operating profit was nearly 60 MSEK. A robust order book and positive underlying growth indicates continued positive progress in 2015.
The major strategic initiative within IDC, which was decided on last fall, commenced in the fourth quarter, with several new hirings. This initiative involves total investments of 188 MSEK in product development and markets over a three-year period, of which 175 MSEK in Westermo. The aim is for IDC to achieve sales approaching 800 MSEK and an operating margin of over 14% by 2017. Growing this business so quickly is a challenge, especially in terms of staff hiring. The major investments are ‘up-front,’ and are also expected to have some impact on IDC’s profitability in 2015.
To help manage this major initiative, and support Westermo’s management, Beijer Electronics has decided to appoint an executive board for Westermo. This includes Bo Elisson and Ulrika Hagdahl, who are also members of the Group Board, the President of Westermo and CEO of Beijer Electronics. After a difficult year, the IAS business area was able to report some positive signals in the fourth quarter. Order intake and sales increased in this period, adjusted for the divested Vehicle division. Progress in countries including the US, China and Turkey were especially positive, with all these markets achieving solid double-digit growth. Apart from the Nordics, Europe progressed positively. Asia—excluding China—and the Nordics saw another year of declining volumes, but this is consistent with expectations. The lower profit is a disappointment, but is due to the aforementioned non-recurring costs. Adjusted for these items, profit increased somewhat.
As a whole, IAS has not achieved expected sales volumes in recent years, which has resulted in the gradual erosion of profitability. To restore profitability over a three-year period, we announced a program of measures for IAS in October. The program includes cost-cutting measures, and in the initial phase, is expected to improve IAS’ profit by 25 MSEK in 2015. Implementation of this program commenced in the quarter, and has gone to plan. In 2015, the IDC business area will focus on delivering in accordance with its approved investments plan, while the IAS business area will prioritize measures to improve profitability. Overall, we think the group will be able to increase sales and improve operating profit in the full year 2015, even if the first half-year is subject to low profitability in IDC, and structural costs within IAS.”
INVITATION TO CONFERENCE CALL
Today a conference call will be held for press and analysts where acting President and CEO Anna Belfrage and acting CFO Joakim Nideborn present the company and comment on the report.
Time: Friday January 30, at 10.30 a.m. CET
To participate in the conference please dial:
From Sweden: +46856642661
From UK: +442034281410
To access the presentation please use this link:
The report and the presentation will be available at Beijer Electronics’ website www.beijergroup.com under Investors/Presentations. A recording of the conference call will also be available here after the event.
For more information please contact:
Acting President and CEO, Anna Belfrage, tel 46 (0)40 35 86 53, mobile 46 (0)706 35 86 53
Acting CFO, Joakim Nideborn, tel 46 (0)40 35 84 49, mobile 46 (0) 707 72 29 83
Beijer Electronics is a fast growing technology company with extensive experience of industrial automation and data communication. The company develops and markets competitive products and solutions that focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group present in 19 countries and sales of 1,402 MSEK 2013. The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.se