1 JANUARY – 31 MARCH 2010 (COMPARED WITH SAME PERIOD A YEAR AGO)
• Net sales fell 12% during the period to SEK 1,527 million (1,731). For comparable units net sales fell 14%.
• Operating profit before amortisation of intangible assets (EBITA) decreased by 11% to SEK 144 million (161) and the EBITA margin was 9.4% (9.3%).
• Profit after tax decreased by 9% to SEK 86 million (95%).
• Earnings per share were SEK 2.15 (2.38).
Better market situation and many acquisitions
Order intake during the first quarter was 10% higher than invoicing, which means that Indutrade is now in a growth phase that will gradually become apparent in invoicing. The total increase in order intake during the quarter is attributable to completed acquisitions. The order intake for comparable units improved gradually during the first quarter, resulting in an increase in order intake in March for the first time since September 2008.
In the geographic markets in which Indutrade works, Sweden is the country that is showing the strongest growth. Of the customer segments, in general it is the engineering industry including commercial vehicles that is showing strong growth. These segments were hit first and hardest by the economic downturn and are now showing the strongest growth.
Invoicing during the quarter was lower than in the same period in 2009 as a result of low order intake in earlier quarters. The order book increased during the quarter.
The Group is once again showing its strength through a very stable gross margin, which improved during the quarter. The EBITA margin for the quarter was 9.4%, which is slightly higher than for the same period in 2009.
During the quarter, Indutrade acquired a total of six businesses with annual sales of nearly SEK 470 million and an EBITA margin exceeding the Group’s tarets. Together with the acquisitions made in autumn 2009, Indutrade’s invoicing will increase by approximately SEK 700 million. The acquisitions made during the quarter strengthen our position in the product segments fasteners (Techno Skruv AB), valves (Corona Control AB), medical equipment (AxMediTec Sp.Z.o.o), filters (Lekang Group) and safety profiles (Stålprofil AB).
Despite the high pace of acquisitions during the first quarter, the ambition is to make additional acquisitions in the coming quarters.
In view of the trend of higher order intake for existing businesses and favourable acquisitions opportunities, I have a positive view of our performance in 2010.
Johnny Alvarsson, President and CEO
This report will be commented upon at a web conference today at 2 p.m. which can be followed at the following link: https://www.anywhereconference.com/?Conference=108242538&PIN=375728.
Participants please call +44 207 750 9950 (UK), +46 8 506 269 30 (SE) or +1 8666 765 870 (US).
Alternatively the report will be commented upon in a film version on Indutrade's website: http://www.indutrade.se