Interim report January-June 2012: Breakthrough on American Rail Market and Continued Positive Order Intake
• Order intake was 724.5 MSEK (731.4).
• Net sales were 689.1 MSEK (729.9).
• Operating profit was 52.0 MSEK (81.7).
• Profit after tax was 20.8 MSEK (57.4).
• Earnings per share were 1.00 SEK (2.92).
• Order intake was 371.5 MSEK (381.0).
• Net sales were 350.2 MSEK (367.9).
• Operating profit was 26.5 MSEK (40.6).
• Profit after tax was 8.0 MSEK (29.0).
• Earnings per share were 0.39 SEK (1.47).
• Breakthrough 4 MUSD order in the rail segment from Toshiba.
COMMENTS FROM FREDRIK JÖNSSON, CEO
“Beijer Electronics’ sales and profit were lower in the second quarter than in the corresponding period of the previous year. But order intake, sales and profit increased on the first quarter of 2012. Overall, order intake in the quarter was the group’s second best ever.
The severe euro crisis in the period triggered substantial uncertainty regarding ongoing economic progress and held decisions, investments and economic activity in check. This affected demand in Europe, and primarily, the group’s Automation business area.
Despite prevailing uncertainty in the market, Beijer Electronics has great confidence in the future and is continuing to invest in further marketing and sales resources. Product development is continuing at the same pace as previously, and in the first half-year the group launched a large number of new products, which overall put us in a strong technological position. The combination of lower sales volumes and higher overheads are affecting profitability for the short term, with lower operating margins.
For the long term, Beijer Electronics is sharpening its international competitiveness, with the group’s biggest single order to date of some 30 MSEK, secured by IDC in the US rail segment, providing clear evidence of this. This emphasizes our leading positioning in this segment, where we see major future market potential. After large-scale product development investments in recent years, IDC is well equipped to handle future growth.
The HMI Products business area made good progress in the second quarter, with healthy growth and sharply improved profitability compared to recent quarters. Sales in the US remained very positive, with growth of 33% and Asia saw a clear recovery with growth of 43% on the second quarter. Overall, order intake in the quarter was the group’s best ever.
The Automation business area saw lower demand in the second quarter, especially in Sweden. The market is featuring increased caution, which means investments are being delayed. In turn, this is creating a growing pent-up need once uncertainty has eased. Simultaneously, the business area extended its product range, adding more Beijer Electronics-branded products, and sharpened its competitiveness in priority segments. In May, Automation secured a number of strategic real estate automation orders including one to the Swedish Royal Library.”
INVITATION TO CONFERENCE CALL
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 July 13 at 1.30 p.m. CET
To participate in the conference please dial:
From Sweden: +46 (0)8 505 59812
From the UK: +44(0)207 108 6205
To access the presentation please use this link:
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 robust data communication. The company develops and markets competitive products and solutions with focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group with offices in 21 countries and sales of 1.4 billion SEK in 2011. Beijer Electronics is listed on the NASDAQ OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE. www.beijerelectronics.se