Organic growth on weaker market, good cash flow but lower operating margin
FIRST QUARTER Net sales reached SEK 807 million 796, up 1.4% on the same period last year. Earnings EBIT were SEK 40 million 54, which gave an operating margin of 5.0% 6.7. Disturbancies in production in the beginning of the quarter combined with extra costs for the start-up of new customer projects had a negative impact on earnings. The profit after tax for the quarter was SEK 30 million 23. Order bookings amounted to SEK 865 million 838, up 3.1% on the same period last year. Cash flow from operating activities was SEK 50 million 40. Earnings per share were SEK 1.42 1.98.
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER Term sheet signed with Russian company GAZ Group whereby FinnvedenBulten intends to invest approximately EUR 6.6 million and receive an ownership share of 63% in a new joint venture company that will supply fasteners to the automotive industry in Russia.“FinnvedenBulten reported increased order bookings and sales in a weaker Western European market. Adjusted for exchange rate differences, FinnvedenBulten’s organic growth was 1.5% compared with the strong performance in the first quarter of 2011. The Group has a strong financial position with a low net-debt-to-equity ratio and good cash flow from current operations. Initially, the quarter was unfortunately affected by disturbances and imbalance in production, but the production situation improved significantly in March. (…)
