Interim Report January 1 – September 30, 2009
- Net sales were 812.7 MSEK (957.1)
- Operating profit was 43.7 MSEK (89.4), charged with non-recurring expenses of 7.5 MSEK in the second quarter
- Profit after tax amounted to 27.5 MSEK (53.0)
- Earnings per share after tax were 4.26 SEK (7.91)
- Cash flow in the period was strong
- Cost-cutting is ahead of plan and the goal for the rationalization package this year has been upgraded to 70 MSEK from the 50 MSEK previously communicated
- Order intake in the period stabilized
- Clear improvement of operating margin in the third quarter (7%) compared to the second quarter (4.7%)
Comments from CEO Fredrik Jönsson
"As previously communicated, Beijer Electronics launched a rationalization package to cut costs by 50 MSEK in 2009, to compensate for lower volumes. Our cost reductions are ahead of plan and for the full year 2009, savings will be 70 MSEK.
In the third quarter, we noted how demand stabilized at a lower level. While the summer was weak, there was an improvement in the latter half of the third quarter. Despite lower volumes, and thanks to the early implementation of our cost-cutting package, Beijer Electronics posted what, in the circumstances, is reasonable profitability in the quarter. The lower profit is fully explained by these lower volumes.
We also put a sharp focus on our Balance Sheet to reduce inventories and accounts receivable. This resulted in strong cash flow.
First and foremost, our focus in 2009 has been to optimize our cost base and enhance processes and routines so we can work more effectively. In addition, we have created a more effective sales structure by reorganizing our sales resources. I’m pleased that we can see a substantial improvement in Asia as a result of a better business climate and sharper sales focus.
By downscaling our costs early, we can now focus on forward-looking activities on the market. Product development remains our top priority and a number of new products will be launched in late-2009 and early-2010. A global product development organization was created in HMI Products in the quarter to rationalize and further utilize the synergies from previous acquisitions.
General demand for electronic components has risen, which risks leading to a component shortage on the global market.
Because of its size on the Nordic market, the Automation business area has been hit hardest by this deep recession. We are now seeing a tendency towards stabilization as several of our large customers are starting to upscale volumes.
The HMI Products business area consolidated its position and posted improved order intake over the past five months. With restructuring completed, the business area is well positioned when demand turns upwards.
The IDC business area has continued to perform convincingly with healthy sales growth and profit performance. The business area has substantial future potential and its focus is on developing global sales channels.
Overall, Beijer Electronics is well positioned with its organization and cost base that can cope with larger volumes in a more positive market. I’m convinced that the group will emerge stronger from the economic crisis with higher long-term profitability."