Financial Statement 2010: Continued High Sales Growth Brings Record Full-year Profits and Increased Dividend

2011-02-10

 

Full Year 2010

  • Order intake up 17% to 1,273.6 MSEK (1,088.3)
  • Sales increased by 13% to 1,232.3 MSEK (1,088.5)
  • Operating profit rose by 95% to 124.3 MSEK (63.8)
  • Profit after tax up to 89.5 MSEK (40.2)
  • Earnings per share were 14.04 SEK (6.22)
  • Proposed dividend of 6.00 SEK (4.00) per share
  • The Board of Directors proposes split 3:1

Fourth Quarter

  • Order intake up 12% to 328.0 MSEK (292.1)
  • Sales increased by 22% to 336.2 MSEK (275.7)
  • Operating profit rose by 74% to 35.0 MSEK (20.1)
  • Profit after tax up to 26.2 MSEK (12.7)
  • Earnings per share were 4.26 SEK (1.96)
  • Two key strategic acquisitions in Taiwan and the US

Comments from Fredrik Jönsson, CEO
“A summary of 2010 would show an unusually eventful year. The recovery after the deep recession of 2009 was fast, especially in profit terms. With continued strength in the fourth quarter, Beijer Electronics was able to post full-year profits for 2010 that exceeded the previous record profits of 2008. Higher volumes and good cost control explain the high profit increase. We have also invested aggressively for the future, allocating increased resources to product development and launched new products, while simultaneously building up our marketing and sales organization. We also completed two major acquisitions in the US and Taiwan that enhance the group’s global presence.

The HMI Products business area was the year’s sensation. Its robust positive trend continued in the fourth quarter, and HMI Products passed a milestone of sales of over half a billion kronor for the full year, while its profits and operating margins set new records. With the acquisition of QSI Corporation of the US late in the year, HMI Products now has a solid platform for continued expansion in North and South America.

The Automation business area, which is late-cyclical, had a difficult year with poor market progress, especially in Denmark and Norway, where volumes contracted. Sweden and Finland achieved some growth. But the Norwegian and Swedish businesses are maintaining good profitability, although overall, the business area’s growth and profitability are inadequate. An action-plan to increase growth and lift profitability was launched late in the year.

The IDC business area made stable progress in the year with good order intake and sales growth. IDC also achieved the business area’s long-term goal of a 12% operating margin, and this despite significant initiatives and investments in product development that resulted in several new product launches. In this context, IDC has built up its sales organization, including a new sales unit in the US. Late in the year, we also succeeded in increasing our participating interest in Korenix to 92%. Korenix is a strategic acquisition, where we see high potential in product and geographical terms in the partnership between Korenix and Westermo, which together, now comprise the IDC business area.

The positive trend has continued in early-2011, with most commentators expecting sustained favorable growth in the global economy through the year. If macroeconomic forecasts are realized, Beijer Electronics expects to be able to achieve continued good growth and higher profits for the full year 2011.”


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 comment 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:

https://www.anywhereconference.com/?Conference=108252200PIN=443742

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 with offices in 16 countries. The company is listed on the Nasdaq OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE.
www.beijerelectronics.se