Interim report third quarter1 January – 30 September 2016

2016-10-25 10.00

Third quarter 2016

  • Order intake rose 6% to SEK 3,082 million (2,901). For comparable units, order intake decreased by 2%.

  • Net sales rose 5% to SEK 3,176 million (3,036). For comparable units, net sales decreased by 3%.

  • Operating profit before amortisation of intangible non-current assets attributable to acquisitions (EBITA) decreased by 3% to SEK 377 million (387), corresponding to an EBITA margin of 11.9% (12.7%).

  • Net profit decreased by 1% to SEK 239 million (242), corresponding to earnings per share of SEK 1.99 (2.02).

  • Bo Annvik was appointed as new President and CEO, and will take office not later than the Annual General Meeting on 26 April 2017.

CEO's message

In a market characterised by tepid global growth and weak development of industrial production, demand continues to vary between product segments, countries and companies. In this challenging market situation, Indutrade has grown during the year both through acquisitions and organically.

Third quarter

Following a succession of quarters with strong growth figures, growth was slightly weaker during the third quarter of 2016.

During the quarter we completed an investment in a new manufacturing plant for valves in the energy segment. Our operation in the Netherlands is our largest unit in the energy sector and has expanded considerably in recent years. The new plant creates conditions for continued development of our valve programme. The market for valves used in power generation in the energy segment remains strong, and our order book is at a favourable level. During the third quarter of 2015 a number of very large project orders were completed and delivered. No corresponding deliveries were made during the third quarter of this year, which is reflected in both invoicing and earnings. In addition, order intake, which varies widely between months and quarters, was lower than in the corresponding period a year ago.

The month-on-month variation in order intake and invoicing was unusually large during the third quarter, where a very weak month of July was not fully compensated by the subsequent improvement that took place in August and September. We believe one reason for this variation and the weak results for July can be traced to the uncertainty created by Brexit, and the UK as a market also showed weak performance during the quarter.

Finland has been a market without growth for many years, but we are now seeing signs of higher demand. Aside from Ireland, with strong growth, our operations in Denmark also continue to develop very positively, both organically and through acquisitions.

For most product segments, demand was largely unchanged compared with the immediately preceding quarter.

To adapt the organisation to the weak market situation in the marine segment, restructuring is being conducted of the businesses that are directly affected.


Achieving growth through acquisitions is a central part of the Indutrade model, and the pace of acquisition is high. During the year a total of ten acquisitions have been carried out, of which four during the third quarter. Annual sales for these ten acquired companies together amount to a billion kronor. The following companies were acquired during the third quarter: KA Olsson & Gems (Sweden), which is a technology sales company; Vacuum Engineering (UK), which makes equipment for leak detection; Crysberg (Denmark), which develops and makes electronic control systems, mainly for irrigation systems; and Alphr Technology (UK), which makes equipment for automated assembly and control of products in production lines.

Activity remains high in the acquisition market, and we see that Indutrade’s business model is attracting many business owners who are considering selling their business.


Indutrade’s business model remains firm, and we believe that through continued acquisitions of well managed and profitable companies – together with unrelenting work on developing existing companies – we have good prospects for profitable growth also in a market characterised by weak international development.

Johnny Alvarsson, President and CEO

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