Interim Report Jan-Sept 2013: Brisk rise in order intake and increased sales and profit in the third quarter
• Order intake increased by 9 % to 327.8 MSEK (299.7).
• Net sales rose by 3 % to 346.1 MSEK (337.4).
• Operating profit increased by 4% to 30.0 MSEK (28.8).
• Profit after tax rose by 20% to 18.4 MSEK (15.3).
• Earnings per share were 0.96 SEK (0.77).
• Launch of a sharply expanded Beijer Electronics-branded product range in Automation
• Order intake increased to 1,049.2 MSEK (1,024.1).
• Net sales were 1,009.9 MSEK (1,026.6).
• Operating profit was 67.3 MSEK (80.8).
• Profit after tax amounted to 35.7 MSEK (36.1).
• Earnings per share were 1.88 SEK (1.77).
COMMENTS FROM FREDRIK JÖNSSON, CEO
“Beijer Electronics’ progress in the third quarter was far better, especially compared to the second quarter. Order intake was good and increased by around 9%, sales also rose and profit improved. The third quarter may signal a trend-break following a somewhat unsatisfactory profitability trend over the last twelve months. A number of factors indicate that we have now bottomed out.
Increased sales quickly have a positive profit impact. This effect is clearest on operating profit before depreciation. Operating profit after depreciation was charged with increased depreciation and amortization on product development and a new ERP system. This means that we’ve yet to re-attain our long-term operating margin target for the group as a whole.
The IDC business area easily beat its operating margin target following very strong progress in the third quarter. Order intake increased by more than 30% and sales by some 20%. At the same time, profits nearly doubled. IDC’s strong progress is a result of the goal-oriented initiative on own-brand network and communication solutions plus new markets and segments. The US is continuing to make good progress and the entry into the Chinese market a year ago is now starting to pay off.
The HMI Products business area turned the corner, making positive progress following a weak second quarter. Order intake was healthy, sales rose and profits improved on the second quarter. Positive progress in Asia contributed to higher order intake and good growth in the US contributed to increased sales. The trend for HMI Products is heading in the right direction, although a great deal remains to be done. The European picture is divided, and includes stronger and weaker markets. We are now reviewing our poor progress in Germany and are implementing an action plan to streamline our organization. We’re also continuing to work intensively on the launch of our new product range.
The Automation business area was affected by a very weak market in the first half of the third quarter. This had a negative effect on Automation’s order intake and sales in the third quarter as a whole. Despite this, Automation presented acceptable profits as a result of strict cost control. Demand started to recover from the end of August, and some recovery continued into October.
At the beginning of September, Automation initiated the group’s biggest product launch to date in the form of a significantly broader Beijer Electronics-branded product range. The new product range enables Beijer Electronics to address a larger market, with the ensuing positive sales effect going forward.
Beijer Electronics’ sales and profit made positive progress in the third quarter. Against the background of the strong order intake in the period, we think that sales and profit will improve in the second half-year compared to the first half-year.”
INVITATION TO TELEPHONE CONFERENCE
Today a conference call will be held for press and analysts where President and CEO Fredrik Jönsson and CFO Anna Belfrage present the company and comment on the report.
Time: Friday October 25, at 10.30 a.m. CET
To participate in the conference please dial:
From Sweden: +46851999361
From UK: +442031940546
To access the presentation please use this link: https://www.anywhereconference.com/?Conference=137348953&PIN=885140
The interim 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 1,367 MSEK 2012. The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.se