FASTENER news

about US

SEARCH

Bufab first quarter sales up 13%

12-Jun-2017

Bufab Group has reported that net sales for Quarter One 2017 increased 13% on the same quarter 2016 and also that it achieved its best operating profit to date.

Net sales in Q1 2017 increased to SEK 815 million (€84.6 million), primarily due to strong organic growth from a combination of strong demand and increased market share, aided by additional working days in the quarter.
Order intake was slightly lower than net sales. Operating profit increased to SEK 90 million (2016: SEK 71 million) and operating margin rose to 11% (2016: 9.9%). Bufab continued to gain market share in its largest operating segment, International, through “winning many small new contracts with many customers in most markets”. The contracts, said Jörgen Rosengren, president and CEO at Bufab, “are a result of systematic sales work over a long period”. Growth was spread across most industries, with only the telecom and electronics segment remaining weak.
Market share in Sweden increased, credited to continued improvement in the sales organisation. Central Europe, eastern Europe and Finland performed well but Bufab noted slightly weaker performance in southern Europe and Asia.
Gross margin strengthened significantly compared with Q1 2016 but was weaker than Q4 2016. Bufab continued to benefit from cost savings in sourcing. However, increasing supplier prices were beginning to impact gross margin. Jörgen Rosengren said: “Bufab will need to compensate for the increased costs through higher customer prices, a move that has already begun.” Bufab continued to consolidate its supplier base and to improve cooperation with its best suppliers, aiming to lower sourcing prices, strengthen logistics, capital efficiency, quality and sustainability.
Acquisitions completed in recent years continued to develop well and Bufab is working to find other suitable acquisition candidates.
Jörgen Rosengren concluded that Bufab was generally satisfied with the start of the year but recognised there is “no lack of challenges moving forward”. These included defending the gross margin in a climate of rising raw material prices, without impacting growth.

 

Bufab acquires Thunderbolts Group

17-Aug-2017

Bufab Group, through its subsidiary Montrose Holdings Ltd, has acquired 100% of the shares in th..


PennEngineering® acquires Whitesell® Formed Components

15-Aug-2017

PennEngineering® has announced the acquisition of Whitesell® Formed Components – with operations..


SFS investing in Chinese operations

11-Aug-2017

SFS will invest US$35 million (€30.7 million) in China over the next two years as part of its ex..


Trifast announces excellent 2017 results

07-Aug-2017

Trifast Plc has announced preliminary results for the year ending 31st March 2017 showing underl..


Changing of the guard at Stafa

03-Aug-2017

In February 1977 George van Gool set up Stafa Group – a company specialising in fastening compon..


© Fastener + Fixing Magazine 2017. Part of the Mack Brooks Group