Interim Report January-March 2011: Continued High Growth and Strong Profit Gains in a Positive Market with Acquisitions Delivering as Planned
- Net sales up by 27% to 362.0 MSEK (285.7)
- Operating profit increased by 75% to 41.1 MSEK (23.5)
and operating margin was 11.4% (8.2)
- Profit after tax up by 78% to 28.4 MSEK (16.0)
- Earnings per share were 4.40 SEK (2.51)
- Acquisition of outstanding minority share in Korenix
Comments from Fredrik Jönsson, CEO
"Beijer Electronics made sustained strong progress in the first quarter. The group returned its single best quarter to date in terms of sales and profit. Adjusted for exchange rate fluctuations, sales grew by 33% in the quarter. Our latest acquisitions, Korenix and QSI, exceeded expectations and returned very rapid growth and good profitability, while integration has proceeded according to plan.
We also have the proof that Beijer Electronics is stronger and attained higher earnings capacity than even the boom year 2008, in like-for-like terms. The deep financial recession in 2009 meant that we made extensive and largely permanent reductions in expenses at the same time as focusing on fast-growing areas with higher margins. On the basis of somewhat higher sales volumes, operating profit was up just over 50% in the first quarter this year compared to the same period of 2008.
The HMI Products business area continued its convincing performance with growth approaching 40% and profit gains almost double that. QSI made significant contributions, primarily in terms of sales, but also profit. HMI Products also set a new record in terms of profit margins, which were an excellent 16.1%.
The Automation business area turned operations in the right direction following last year’s slow progress. The action plan launched towards the end of last year has taken effect. Mainly, things have started to brighten up in Denmark and Finland, with sharply higher sales and improved profit. This implied that Automation overall more than doubled profit in the quarter and almost achieved its long-term margin target.
The IDC business area experienced a weaker European market in the quarter even if the situation improved towards the end of the period. IDC also suffered from more challenging comparative figures with two big orders in the first quarter 2010. The acquisition of Korenix made a positive sales and profit contribution, and overall, IDC experienced growth of just over 25%. Profit was up somewhat while also being charged with heavy market investment in the US and Asia."
Conference Call Invitation
Today at 2.30 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:
The presentation will be published on the Beijer Electronics web site, www.beijerelectronics.se, under Investor Relations/Presentations. A recording of the conference call will also be posted on the web site 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. 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 16 countries. Beijer Electronics is listed on the NASDAQ OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE. www.beijerelectronics.se