Interim Report January-March 2014: Increased Sales and Improved Operating Profit
- Net sales rose by 6% to 346.1 MSEK (327.7).
- Operating profit increased by 6% to 26.2 MSEK (24.7).
- Profit after tax amounted to 15.1 MSEK (16.8).
- Earnings per share were SEK 0.80 (0.82).
- New reporting structure means that Automation and HMI Products are merged into the Industrial Automation Solutions (IAS) business area.
COMMENTS FROM FREDRIK JÖNSSON, CEO
“The first quarter of 2014 confirmed the cautiously positive trend in the second half of 2013, with increased sales and improved operating profit in the quarter. Order intake remained unchanged in the period, for reasons including non-recurring effects. At the same time, progress shows that the recovery is slow and that uncertainty remains on some markets and in certain segments.
Group sales also varied across different markets. While the US made very brisk progress, sales in the Nordics declined. The rest of Europe and Asia returned positive growth overall.
The IDC business area continued to make convincing progress in terms of order intake, sales and operating profit. IDC continues its global success in the rail segment, receiving major orders from China, Poland and Finland. Network Solutions won several large orders on key European markets.
While Train and Network Solutions are continuing to make extensive investments in product development, Beijer Electronics has also established a Wireless development center in Taiwan to meet growing demand for wireless communication solutions.
As previously announced, Beijer Electronics started presenting its reporting in two business areas, Industrial Automation Solutions (IAS) and Industrial Data Communication (IDC), from Q1, 2014 onwards. IDC comprises Westermo and Korenix, which focus on the market for industrial data communication. IAS comprises the former business areas HMI Products and Automation, and address the industrial automation market.
The IAS business area made mixed progress in the first quarter. Sales increased and order intake fell, while operating profit was somewhat lower. The US and China made positive progress. The Nordics and the rest of Europe were more hesitant as a result of factors including planned inventory reductions by some of its major customers.
On the whole, we consider that the underlying market is gradually stabilizing. If the trend continues, there are grounds for a degree of optimism for the full year 2014.”
INVITATION TO CONFERENCE CALL
Today, April 23, 2014, a conference call will be held for press and analysts where President and CEO Fredrik Jönsson present the company and comment on the report.
Time: Wednesday April 23, at 2.30 p.m. CET
To participate in the conference please dial:
From Sweden: +46 850598261
From UK: +44 2076602080
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:
President and CEO, Fredrik Jönsson, tel 46 (0)40 35 86 10, mobile 46 (0)705 17 16 26
CFO, Anna Belfrage, tel 46 (0)40 35 86 53, mobile 46 (0)706 35 86 53
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 22 countries and sales of 1,376 MSEK 2013. The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.se