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2019-10-24 13:30:00

Bulten AB: Bulten's Q3 report 2019

Positive development of order intake, earnings impacted by items affecting comparability and lower production rate.


THIRD QUARTER
  • Net sales amounted to SEK 718 (722) million, a decrease of -0.6% on the same period last year.
  • Operating earnings (EBIT) totaled SEK -8 (38) million, equating to an operating margin of -1.0% (5.2).
  • Operating earnings (EBIT) adjusted for relocation costs in China and restructuring in Germany totaled SEK 19 (38) million,
  • equating to an adjusted operating margin of 2.8% (5.2).
  • Earnings after tax amounted to SEK -14 (25) million.
  • Order bookings amounted to SEK 776 (723) million, an increase of 7.3% on the same period last year.
  • Cash flow from operating activities totaled SEK 114 (-15) million.
  • Earnings per share were SEK -0.75 (1.26).
JANUARY - SEPTEMEBER
  • Net sales amounted to SEK 2,309 (2,385) million, a decrease of -3.2% on the same period last year.
  • Operating earnings (EBIT) totaled SEK 71 (162) million, equating to an operating margin of 3.1% (6.8).
  • Operating earnings (EBIT) adjusted for relocation costs in China and restructuring in Germany totaled SEK 105 (162) million,
  • equating to an adjusted operating margin of 4.6% (6.8).
  • Earnings after tax amounted to SEK 44 (113) million.
  • Order bookings totaled SEK 2,261 (2,357) million, a decrease of -4.1% on the same period last year.
  • Cash flow from operating activities totaled SEK 109 (65) million.
  • Earnings per share were SEK 2.08 (5.69).
  • Net debt amounted to SEK 596 (164) million. Net debt (excluding financial leasing) totaled SEK 328 (128) million.
  • The equity/assets ratio was 54.8% (65.1) at the end of the period. The equity/assets ratio (excluding financial leasing) totaled
  • SEK 59.9% (65.1).
  • Flagging of own shareholding of 5% of the total number of shares in the company.
  • Bulten announced that Q3 earnings were adversely affected by restructuring in Germany by approximately SEK 20 million, and a lower production rate by approximately SEK 20 million.

CEO'S COMMENTS

"The decline in the automotive markets continued during the third quarter, and the weaker demand was reflected in Bulten's volumes. The marginal reduction in net sales of 0.6% and the higher order intake indicate that deliveries of the already contracted business have now begun. Market development and balancing of inventory levels have resulted in a continued low production rate. The under-absorption had a negative impact on earnings of approximately SEK 18 million during the quarter. Customers' volume reductions at short notice have countered the impact of inventory reduction measures to some extent.      

Order bookings increased by 7.3% during the quarter. However, the uncertainty about the economic situation and the outcome of Brexit make the development in the coming months difficult to predict. This could also affect the production rate for the fourth quarter, and ongoing adaptations are being made in both purchasing and production.

Restructuring in the company's unit in Bergkamen, Germany began during the quarter, and negotiations are ongoing. Costs for this burdened
Q3 earnings by SEK 20 million. The restructuring is expected to bring annual savings of approximately SEK 25 million from the 2020 calendar year.

The relocation of operations in China, from Beijing to Tianjin, is proceeding according to plan and will be completed during the fourth quarter. Relocating production impacted operating earnings for the third quarter with a cost of SEK 7 million. The investment will create further growth opportunities for Bulten.

Bulten has previously announced new contracts worth just over half a billion SEK a year at full production in 2021. Ramp up of the new contracts is taking longer than previously announced, but is expected gradually to compensate for the general market downturn over coming quarters."

Anders Nyström, President and CEO

 

Investors, analysts and media are invited to participate in the teleconference on October 24 at 15:30 CET. The report will be presented by Anders Nyström, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q3-2019. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

SE: +46856642695
UK: +443333009031
US: +18335268382

Copies of the presentation will be available at www.bulten.com/ir approximately 30 minutes before start.

For further information, please contact:

Anders Nyström, President and CEO
Tel: + 46 31-734 59 00

Kamilla Oresvärd, Senior Vice President Corporate Communications
Tel: +46 70-520 59 17, e-mail: kamilla.oresvard@bulten.com

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 13:30 CET on October 24, 2019.

Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company's product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com.




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