Interim Report January-June 2010: Significant Increase to Sales and Profits in the Second Quarter, Outlook Upgraded for the Full Year 2010

2010-08-17

First Half-year

  • Order intake up 21% to 658.1 MSEK (542.2)
  • Sales increased by 6% to 595.4 MSEK (562.4)
  • Operating profit rose to 54.6 MSEK (26.2)
  • Profit after tax was 39.9 MSEK (14.3)
  • Earnings per share were 6.13 SEK (2.16)
  • Upgraded outlook with significantly higher sales and markedly better profits in the full year 2010

Second Quarter

  • Order intake up 26% to 332.8 MSEK (263.9)
  • Sales increased by 15% to 309.7 MSEK (270.3)
  • Operating profit was 31.1 MSEK (5.1)
  • An acquisition in Asia within data communications was conducted after the end of the period

Comments from Fredrik Jönsson, CEO

“Beijer Electronics achieved robust growth in the second quarter. Order intake increased by 26%, and this is the best quarter in the company’s history. Sales volumes grew by 15%. Because of volume expansion and restructuring conducted last year, we’re seeing a strong increase in profits. Our operating margin was 10%, which is in line with the group’s profitability goal. Our internal efficiency simultaneously increased as we sharpened our focus on product development. We’re growing fastest in technologies we’ve developed ourselves, which now make up over 70% of total group sales.

As in the first quarter, the HMI Products business area was the highlight, with sharp growth in its order intake, sales and profits. The IDC business area also sustained good growth, and the Automation business area turned around in the second quarter, achieving increases in its order intake and sales, while its profits doubled. Automation’s OEM initiative has continued to pay off, and four new OEM customers were secured in the quarter.

The positive trend has created scope for aggressive initiatives, primarily in HMI Products and IDC. Market initiatives in Asia have accelerated, especially in China and Taiwan, but in South Korea and Singapore too. In addition, Beijer Electronics completed a strategic acquisition in the form of 37% of Taiwanese technology company Korenix. This acquisition offers enhanced growth potential in industrial data communications through a broader product range and greater geographical presence, primarily through established sales channels, primarily in China and the rest of Asia.

These initiatives will generate better growth and higher profits. For the full year 2010, we are already witnessing clearly higher sales and markedly better profits than in 2009.”

Phone Meeting Invitation

A phone meeting for press and analysts will be held today, August 17th, at 2:00 p.m. CET. President and CEO Fredrik Jönsson and CFO Lennart Mauritzson will present the company and comment the interim report.

To participate in the phone meeting, please call:
from Sweden: +46 (0)8 506 269 04
from the UK: +44 (0)207 108 6205

The presentation will be published on Beijer Electronics’ website, www.beijergroup.com under Investor Relations/Presentations, and can be viewed during the online webcast that you connect to here:

https://www.anywhereconference.com/?Conference=108246122&PIN=184685


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 present in 16 countries and sales of 1.1 bn SEK 2009. The company is listed on the Nasdaq OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE.
www.beijerelectronics.se