Bulten Q3 profits improve despite sales fall
21 November 2016
Bulten reported Quarter 3 2016 sales of SEK 601 million down 2.7% on the same quarter 2015 (SEK 618 million). EBIT was SEK 39 million (Q3 2015: SEK 36 million) corresponding to an operating margin of 6.5% (2015: 5.8%). Earnings after tax were SEK 30 million (Q3 2015: SEK 22 million).
Net sales for the nine months year to date were SEK 2 billion (2015nine months: SEK 2.027 billion) down 1.2% year-on-year. EBIT wasSEK 148 million (2015:
SEK 118 million) corresponding to an operating margin of 7.4% (2015: 5.8%). Nine months earnings after tax wereSEK 109 million (2015: SEK 87 million).
Nine month order bookingstotalled SEK 1.973 billion, down 1.4% on the same period 2015.
President and CEO Tommy Andersson commented: “Bulten is reporting strong results with an operating margin of 6.5% despite a fall in volumes.The rate of
sales was slightly weak, mainly at the start of the quarter, but recovered during September. The results were due to completed optimisation and good
flexibility in the business.”
“Volume development and order bookings deteriorated slightly due to model shifts by our customers, lower export volumes to China and heavy vehicle production,
and some effects of ‘Brexit’. We still expect 2016 to be a year of growth in-line with expectations for European vehicle production with the exception
of export volumes, which are expected to be weaker than last year.”
“Bulten’s prospects for gaining further market share is very good from the second half of 2017, based on signed contracts and also on ongoing discussions
with customers. During the quarter there was a breakthrough for our business in Russia when we signed an agreement with a significant vehicle manufacturer.”
“We have taken further steps to becoming the industry’s most cost-efficient producer of fasteners while safeguarding profitable growth through investment
in a new surface treatment facility at our plant in Germany. This investment will provide added value and improved competitiveness through greater
flexibilityand control over our process.”
Currency exchange: At interbank rates 100 SEK = €10.3
