Earnings Release • Feb 14, 2012
Earnings Release
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| 2011 | 2010 | 2011 | 2010 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net Sales | 2,158 | 1.764 | 22% | 7.994 | 6,745 | 19% |
| EBITA | 251 | 163 | 54% | 9'17 | 703 | 30% |
| EBITA margin, % | 11.6 | 9.2 | 11.5 | 10.4 | ||
| Profit after financial items | 207 | 124 | 67% | 729 | 553 | 32% |
| Net profit | 155 | 87 | 78% | 540 | 405 | 33% |
| Earnings per share, SEK 11 | 3.88 | 2.20 | 76% | 13.50 | 10.18 | 33% |
| Return on operating capital, % | 26 | 23 | 26 | 23 |
1)Attribu table to equity h holders of the p arent copmany. .
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The ene quarter worth E This is Indutra ergy segment r one of the Gr EUR 18 million the largest or ade company. continues to g roup's compan n for a project rder ever awar grow, and dur nies won an or in the Middle rded to an indi ring the rder East. ividual
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T h q a s a i The EBITA ma highest EBITA quarter, which and strong inv strong EBITA m absolute numb n earnings. rgin increased margin ever r h can be credit oicing. All of o margins comp bers, this also d to 11.6% (9.2 recorded for t ted to a favour our business a pared with a y o translated to 2%) and is the he fourth rable market areas posted ear ago. In o strong growt eh
2 r o G m 2011 was a rec respects. We r order intake, E Group's long-t margin in 2011 cord-breaking reached our h EBITA and ear term targets w 1. g year for the G ighest-ever le rnings per sha were achieved Group in many evel of sales, are. All of the by a wide yes
I q t w m a h ndutrade carr quarter, one in technology. Fo with combined million. Acquir are continuing have already b ried out two ac n medical tech or the year in t d annual sales red growth wa g, and thus far been carried o cquisitions du hnology and on total, we acqu s of just under as 12%. Acquis r into 2012, two out. ring the ne in flow ired companie r SEK 700 sition activities o acquisitions
A w t m a h m d n As always, the watchers are e they did during materialise in along the sam hopeful for fav meantime, like developments necessary. future is unce expressing co g most of 2011 reality. As the e track as the vourable perfo e our custome closely and a ertain. Many m ncerns about 1. Still, these f e start of 2012 e last quarter o ormance in 20 ers, we are mo re prepared to market the future, as fears did not 2 is continuing of 2011, I am 12. In the onitoring o take action i sf
J Johnny Alvars son, Presiden nt and CEO
SALES GROWTH
Order intake during the year amounted to SEK 8,315 million (6,863), an increase of 21%. For comparable units, order intake rose 12%, while acquired growth was 13%. Currency movements affected order intake negatively by 4%, or SEK -257 million.
Order intake during the fourth quarter amounted to SEK 2,137 million (1,823), an increase of 17%. For comparable units, order intake rose 9%, while acquired growth was 10%. Currency movements affected order intake negatively by 2%, or SEK -35 million.
The business climate for the Group remained favourable also during the final quarter of the year. Order intake and net sales both reached record highs for an individual quarter. All business areas except for Industrial Components experienced an increase in order intake during the quarter for comparable units. The positive trend that was noted already during the second quarter of the year, with rising demand for products in the international energy sector, strengthened further during the fourth quarter. In other respects, the close of the year was in line with earlier performance, as the improvement was broad-based and covered most of the business areas and geographic markets in which the Group is active.
Net sales for the year totalled SEK 7,994 million (6,745), an increase of 19%. For comparable units the increase was 10%, while acquired growth was 12%. The negative currency effect was 3%, corresponding to an impact on sales of SEK -248 million.
During the fourth quarter, net sales rose 22% to SEK 2,158 million (1,764). The increase for comparable units was 12%, while acquired growth was 12%. Currency movements had a negative effect on net sales by 2%, or SEK -32 million.
The strong business climate is reflected in net sales for the Group's business areas, which reported increases for comparable units ranging from 6% to 23% for the fourth quarter. For the year as a whole, all business areas reported organic growth of 5%–18%.
Operating profit before amortisation of intangible assets (EBITA) amounted to SEK 917 million (703) for the year, an increase of 30%. The operating margin before amortisation of intangible assets (the EBITA margin) was 11.5% (10.4%).
The gross margin was 34.1% (33.6%). The larger margin is attributable to the fact that parts of the Group's Swedish operations were able to benefit from the effects of the stronger Swedish krona, mainly in the beginning of the year. Active work on margin-enhancing measures and a stronger focus within certain businesses also contributed to better margins. The higher business volume also entailed a decrease in the share of fixed product costs – mainly in the Group's manufacturing companies – which also benefited the gross margin.
Net financial items amounted to SEK -93 million (-61), of which net interest expense was SEK -87 million (-60). The increase in net interest expense is attribuable to the Group's higher level of net debt and higher interest rates. Tax on profit for the year was SEK -189 million (-148), corresponding to a tax charge of 25.9% (26.8%). Profit after tax rose 33% to SEK 540 million (405). Earnings per share increased to SEK 13.50 (10.18).
For the fourth quarter, operating profit before amortisation of intangible assets (EBITA) amounted to SEK 251 million (163), an increase of 54%. The operating margin before amortisation of intangible assets (the EBITA margin) was 11.6% (9.2%).
Net financial items for the fourth quarter amounted to SEK -19 million (-18), of which net interest expense was SEK -20 million (-17). Tax on profit for the period totalled SEK -52 million (-37). Profit after tax rose 78% to SEK 155 million (87). Earnings per share were SEK 3.88 (2.20).
Favourable growth for comparable units combined with limited cost increases, a higher gross margin for the year as a whole and good performance for acquired units contributed to the earnings improvement and improved EBITA margin.
All business areas showed higher earnings for the fourth quarter as well as for the year as a whole. Both acquired and comparable companies made a positive contribution to the earnings improvement, while currency effects from translation of foreign units decreased earnings by SEK 32 million for the year and by SEK 7 million for the fourth quarter.
The return on operating capital amounted to 26% (23%), and the return on equity was 29% (24%).
Engineering & Equipment's operations involve sales of components sales as well as customisation, combinations and installations of products from various suppliers. Compared with the other business areas, sales consist to a slightly higher degree of investment goods.
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 438 | 380 | 1,627 | 1,409 |
| EBITA | 36 | 24 | 128 | 100 |
| EBITA margin, % | 8.2% | 6.3% | 7.9% | 7.1% |
Net sales for the year rose 15%, to SEK 1,627 million (1,409). The increase for comparable units was 18%. Acquisitions contributed 3%, while currency movements had a negative effect on net sales, by 6%. During the fourth quarter, net sales rose 16% for comparable units, with 2% from acquisitions and currency movements affecting sales by -3%.
Demand in the Finnish market, where the business area conducts most of its business, remained favourable also during the final quarter of the year. This favourable trend covered most segments of importance for the business area, including the export-oriented engineering industry, the mining industry, domestic and international pulp and paper projects, construction and maintenance, and infrastructure investments such as water and sewage. During the year certain investments were carried out, for example within water and sewage, which led to stronger market positions in these areas. In the Baltic region, which accounts for just under 10% of the business area's sales, activities were focused on the segments with the highest profitability potential.
EBITA for the period rose 28% to SEK 128 million (100), corresponding to an EBITA margin of 7.9% (7.1%). The investments carried out to strengthen the business area's position in interesting and profitable product areas tempered the earnings contribution of the increase in net sales.
In early January the company Dantherm Filtration Oy was acquired, with annual sales of SEK 30 million, and in August a business with annual sales of SEK 17 million was acquired from Enervent Oy.
Flow Technology offers components and systems for controlling, measuring, monitoring and regulating flows. The business area includes companies that specialise in various areas of industrial flow technology.
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 541 | 439 | 2,017 | 1,743 |
| EBITA | 57 | 29 | 229 | 155 |
| EBITA margin, % | 10.5% | 6.6% | 11.4% | 8.9% |
Net sales for the year totalled SEK 2,017 million (1,743), an increase of 16%. The increase for comparable units was 11%, while acquired growth was 8%. Currency movements had a negative effect on net sales, by 3%. During the fourth quarter, net sales rose 23% for comparable units, with 3% from acquisitions and currency movements affecting net sales by -3%.
Demand continued to develop well during the fourth quarter, albeit at a slightly lower rate of increase than during earlier quarters of the year. Most of the business area's customer segments benefited from the strong business climate, including energy and water/sewage, while activity in the pulp and paper segment increased from a weaker market situation in the preceding year. Demand from the marine sector during the year as a whole was stable.
EBITA for the period rose 48% to SEK 229 million (155), and the EBITA margin reached 11.4% (8.9%). The increase in net sales for the year was achieved with limited resource strengthening. Similarly, earnings and the margin were affected by a slight strengthening of the gross margin attributable to the stronger Swedish krona and active work on margin-enhancing measures. Completed acquisitions developed favourably and contributed to the earnings increase.
In June the company Torell Pump AB was acquired, with annual sales of SEK 40 million, and in October the company AG Johansons Metallfabrik AB was acquired, with annual sales of approximately SEK 12 million.
Industrial Components offers a wide range of technically advanced components and systems for production and maintenance, and medical technology equipment. The products consist mainly of consumables. The companies in the business area typically work in close co-operation with customers' development, production and maintenance departments. Major emphasis is put on identifying and understanding customers' production processes and needs.
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 427 | 398 | 1,580 | 1,455 |
| EBITA | 47 | 35 | 183 | 140 |
| EBITA margin, % | 11.0% | 8.8% | 11.6% | 9.6% |
Net sales for the year rose 9%, to SEK 1,580 million (1,455). The increase for comparable units was 10%. Acquisitions contributed 1%, while currency movements had a negative effect of 2%. During the fourth quarter, net sales rose 6% for comparable units, with 2% from acquisitions and currency movements -1%.
Demand for products for the general engineering industry, the mining and steel industries, and commercial vehicles on the whole was at high, stable level during the fourth quarter. Some softness was noted in demand for certain components in those sectors, at the same time that demand for capital goods remained strong. The market situation for businesses focused on medical technology was stable and benefited during the year from new product launches.
EBITA for the period rose 31% to SEK 183 million (140), corresponding to an EBITA margin of 11.6% (9.6%). The EBITA margin was favourably affected by the increase in net sales, which was achieved with a limited increase in costs. Some positive impact from the stronger Swedish krona was noted during the year.
In October the company AD MediCal AB was acquired, with annual sales of approximately SEK 30 million.
Special Products offers specially manufactured niche products, design solutions, aftermarket service and assembly, and special processing. The business area includes companies that conduct a considerable amount of own manufacturing. It is also the Indutrade business area with the highest share of proprietary products.
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 767 | 554 | 2,806 | 2,164 |
| EBITA | 118 | 78 | 421 | 342 |
| EBITA margin, % | 15.4% | 14.1% | 15.0% | 15.8% |
Net sales for the year rose 30% to SEK 2,806 million (2,164), of which sales for comparable units rose 5%. Acquired growth for the year was 28%, while currency movements reduced net sales by 3%. During the fourth quarter, net sales rose 8% for comparable units, with 31% from acquisitions and currency movements affecting sales by -1%.
During the fourth quarter the business area experienced a strong market situation in the international energy market, where demand exceeded deliveries during the quarter as well as for the year as a whole. Demand in other business segments was stable overall during the final quarter of the year. Certain differences were noted geographically, with Benelux softening somewhat compared with the earlier trend at mid-year, while demand in Germany, Sweden and Switzerland remained favourable.
EBITA rose 23% to SEK 421 million (342), and the EBITA margin was 15.0% (15.8%). Apart from the contribution from acquisitions, the earnings improvement is attributable to the increase in net sales for comparable units that was generated with limited increases in resources. The lower EBITA margin for the full year is mainly attributable to the fact that newly acquired units on the whole had lower margins than the business area's previous, average level.
During the year Indutrade acquired the Abima Group, with companies in Switzerland, Austria and Germany; Mijnsbergen b.v. and ATB Automation n.v.-s.a., with operations in the Netherlands and Belgium; Abelko Innovation AB, in Sweden; and Alcatraz Interlocks BV and MW-Instruments BV in the Netherlands. Annual sales of the acquired companies amount to approximately SEK 560 million.
Shareholders' equity amounted to SEK 2,064 million (1,744), and the equity ratio was 38% (36%). Cash and cash equivalents amounted to SEK 264 million (219). In addition to this, the Group had unutilised credit promises of SEK 710 million (900). Interest-bearing net debt amounted to SEK 1,488 million (1,390). The net debt/equity ratio was 72% (80%) at the year-end.
Cash flow from operating activities was SEK 709 million (656). The increase is attributable to the higher level of earnings. Cash flow after net capital expenditures in property, plant and equipment (excluding company acquisitions) was SEK 570 million (545).
The Group's net capital expenditures (excluding company acquisitions) amounted to SEK 139 million (111). Depreciation of property, plant and equipment amounted to SEK 102 million (98). Investments in company acquisitions amounted to SEK 467 million (684), of which earn-out payments pertaining to previous years' acquisitions amounted to SEK 117 million (88).
The number of employees was 3,807 at year-end (3,444), of whom 303 were added through acquisitions.
The Group has acquired the following companies, which were consolidated for the first time in 2011.
| Month acquired |
Acquisitions | Business area | Net sales/SEK m* | No. of employees* |
|---|---|---|---|---|
| January | Dantherm Filtration Oy (name changed to Tecalemit Filtration Oy) |
Engineering & Equipment | 30 | 10 |
| Abima (name changed to Indutrade Switzerland AG) |
Special Products | 400 | 170 | |
| Mijnsbergen b.v. and ATB Automation n.v.-s.a. |
Special Products | 60 | 23 | |
| February | Abelko Innovation AB | Special Products | 60 | 44 |
| April | Alcatraz Interlocks BV | Special Products | 20 | 5 |
| June | Torell Pump AB | Flow Technology | 40 | 9 |
| July | Hamberger Armaturen AG | Special Products | 10 | 2 |
| August | Enervent (assets) | Engineering & Equipment | 17 | 14 |
| September | MW-Instruments BV | Special Products | 10 | 5 |
| October | AD MediCal AB | Industrial Components | 30 | 12 |
| AG Johansons Metallfabrik AB | Flow Technology | 12 | 9 | |
| 689 | 303 |
*Estimated annual sales and number of employees at the time of acquisition.
Further information about company acquisitions can be found on page 14 of this interim report.
Two acquisitions were carried out in January 2012.
The Flow Technology business area acquired Rostfria VA-system i Storfors AB, with annual sales of approximately SEK 15 million. The company supplies pump stations and pipe systems to water treatment plants.
Dasa Control Systems AB, with annual sales of SEK 50 million, was acquired by the Special Products business area. Dasa Control Systems supplies internally developed, advanced control and communication systems for heavy vehicles.
In other respects, no important events for the Group have occurred after the close of the financial year.
The main functions of Indutrade AB are to take responsibility for business development, acquisitions, financing, business control and analysis. The Parent Company's sales, which consist exclusively of intercompany invoicing of services, amounted to SEK 4 million (4) for the year. The Parent Company's capital expenditures in financial assets, consisting mainly of company acquisitions, amounted to SEK 324 million (351). The Parent Company's capital expenditures in intangible non-current assets and in property, plant and equipment totalled SEK 0 million (0). The number of employees on 31 December was 10 (10).
The Indutrade Group conducts business in 25 countries in four world regions, through some 160 companies. This spread, together with a large number of customers in various industries and a large number of suppliers, mitigates the business and financial risks. Apart from the risks and uncertainties described in Indutrade's 2010 Annual Report, no significant risks or uncertainties are judged to have emerged or been eliminated. Since the Parent Company is responsible for the Group's financing, it is exposed to financing risk.
The Parent Company's other activities are not exposed to risks other than indirectly via subsidiaries. For a more detailed report on risks that affect the Group and Parent Company, please see the 2010 Annual Report.
No transactions took place during the year between Indutrade and related parties that have significantly affected the Company's financial position or result of operations.
Indutrade reports in accordance with International Financial Reporting Standards (IFRS). This year-end report has been prepared in accordance with IAS 34 and RFR 1. The Parent Company applies RFR 2. The same accounting principles and calculation methods are used in this report as those used in Indutrade's 2010 Annual Report.
There are no new IFRSs or IFRIC interpretations that have been adopted by the EU that will be applicable for Indutrade or that will have any material impact on the Group's result of operations or financial position in 2012.
The Board of Directors proposes a dividend of SEK 6.75 per share (5.10), for a total dividend payout of SEK 270 million. The proposed dividend is in line with Indutrade's dividend policy to distribute a minimum of 50% of profit after tax over time.
The 2011 Annual Report will be published in early April 2012. It will be available on Indutrade's website from the date of publication.
The interim report for the period 1 January–31 March 2012 will be released on 3 May 2012.
The Annual General Meeting will be held in Stockholm on 3 May 2012.
The interim report for the period 1 January–30 June 2012 will be released on 24 July 2012.
The interim report for the period 1 January–30 September 2012 will be released on 5 November 2012.
Stockholm, 14 February 2012
Indutrade AB (publ)
Johnny Alvarsson President and CEO
We have reviewed this report for the period 1 January to 31 December 2011 for Indutrade AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm, 14 February 2012
PricewaterhouseCoopers AB
Lennart Danielsson Authorised Public Accountant Auditor in charge
The information provided herein is such that Indutrade AB (publ) is obligated to publish pursuant to the Securities Market Act, the Financial Instruments Trading Act, and/or in accordance with the Issuers Rules and Regulations for the Nasdaq OMX Stockholm. Submitted for publication at 9.30 a.m. on 14 February 2012.
For further information, please contact: Johnny Alvarsson, President and CEO, Tel: +46 70 589 17 95.
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net Sales | 2,158 | 1,764 | 7,994 | 6,745 |
| Cost of goods sold | -1,427 | -1,160 | -5,268 | -4,480 |
| Gross profit | 731 | 604 | 2,726 | 2,265 |
| Development costs | -24 | -13 | -74 | -48 |
| Selling costs | -389 | -339 | -1,430 | -1,224 |
| Administrative expenses | -99 | -110 | -398 | -376 |
| Other operating income and expenses | 7 | 0 | -2 | -3 |
| Operating profit | 226 | 142 | 822 | 614 |
| Net financial items | -19 | -18 | -93 | -61 |
| Profit after financial items | 207 | 124 | 729 | 553 |
| Income Tax | -52 | -37 | -189 | -148 |
| Net profit for the period | 155 | 87 | 540 | 405 |
| Net profit, attributable to: | ||||
| Equity holders of the parent company | 155 | 88 | 540 | 407 |
| Non-controlling interests | 0 | -1 | 0 | -2 |
| 155 | 87 | 540 | 405 | |
| Earnings per share for the period, attributable | ||||
| to equity holders of the parent company 1) | 3.88 | 2.20 | 13.50 | 10.18 |
| EBITA | 251 | 163 | 917 | 703 |
| Operating profit includes: | ||||
| Amortisation of intangible assets | -27 | -21 | -104 | -89 |
| Depreciation of property, plant and equipment | -25 | -24 | -102 | -98 |
1) Earnings for the period divided by 40,000,000 shares. There is no dilutive effect.
| Net profit for the period | 155 | 87 | 540 | 405 |
|---|---|---|---|---|
| Other comprehensive income | ||||
| Fair value adjustments of hedge instruments | -7 | 18 | -33 | 18 |
| Tax attributable to fair value adjustments | 2 | -4 | 9 | -4 |
| Actuarial gains/losses | 15 | -35 | 15 | -35 |
| Tax on actuarial gains/losses | -5 | 9 | -5 | 9 |
| Exchange rate differences | -38 | 4 | -2 | -125 |
| Other comprehensive income for the period, | -33 | -8 | -16 | -137 |
| net of tax | ||||
| Total comprehensive income for the period | 122 | 79 | 524 | 268 |
| Net profit, attributable to: | ||||
| Equity holders of the parent company | 122 | 80 | 524 | 270 |
| Non-controlling interests | 0 | -1 | 0 | -2 |
| 2011 | 2010 | 2011 | 2010 | |||||
|---|---|---|---|---|---|---|---|---|
| Net sales, SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | ||||
| Engineering & Equipment | 438 | 380 | 1,627 | 1,409 | ||||
| Flow Technology | 541 | 439 | 2,017 | 1,743 | ||||
| Industrial Components | 427 | 398 | 1,580 | 1,455 | ||||
| Special Products | 767 | 554 | 2,806 | 2,164 | ||||
| Parent company and Group items | -15 | -7 | -36 | -26 | ||||
| 2,158 | 1,764 | 7,994 | 6,745 | |||||
| 2011 | 2010 | 2011 | 2010 | |||||
| EBITA, SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | ||||
| Engineering & Equipment | 36 | 24 | 128 | 100 | ||||
| Flow Technology | 57 | 29 | 229 | 155 | ||||
| Industrial Components | 47 | 35 | 183 | 140 | ||||
| Special Products | 118 | 78 | 421 | 342 | ||||
| Parent company and Group items | -7 | -3 | -44 | -34 | ||||
| 251 | 163 | 917 | 703 | |||||
| 2011 | 2010 | 2011 | 2010 | |||||
| EBITA margin, % | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | ||||
| Engineering & Equipment | 8.2 | 6.3 | 7.9 | 7.1 | ||||
| Flow Technology | 10.5 | 6.6 | 11.4 | 8.9 | ||||
| Industrial Components | 11.0 | 8.8 | 11.6 | 9.6 | ||||
| Special Products | 15.4 | 14.1 | 15.0 | 15.8 | ||||
| 11.6 | 9.2 | 11.5 | 10.4 | |||||
| 2011 | 2010 | |||||||
| Net sales, SEK million | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec Jul-Sep Apr-Jun | Jan-Mar | ||
| Engineering & Equipment | 438 | 427 | 410 | 352 | 380 | 351 | 373 | 305 |
| Flow Technology | 541 | 531 | 499 | 446 | 439 | 475 | 446 | 383 |
| Industrial Components | 427 | 370 | 390 | 393 | 398 | 344 | 373 | 340 |
| Special Products | 767 | 684 | 722 | 633 | 554 | 568 | 537 | 505 |
| Parent company and Group items | -15 2,158 |
-7 2,005 |
-6 2,015 |
-8 1,816 |
-7 1,764 |
-6 1,732 |
-7 1,722 |
-6 1,527 |
| EBITA, SEK million | Oct-Dec | Jul-Sep | 2011 Apr-Jun |
Jan-Mar | Oct-Dec Jul-Sep Apr-Jun | 2010 | Jan-Mar | |
| Engineering & Equipment | 36 | 41 | 32 | 19 | 24 | 32 | 30 | 14 |
| Flow Technology Industrial Components |
57 47 |
72 42 |
57 46 |
43 48 |
29 35 |
44 40 |
52 37 |
30 28 |
| Special Products | 118 | 100 | 116 | 87 | 78 | 98 | 84 | 82 |
| Parent company and Group items | -7 | -10 | -13 | -14 | -3 | -9 | -12 | -10 |
| 251 | 245 | 238 | 183 | 163 | 205 | 191 | 144 | |
| 2011 | 2010 | |||||||
| EBITA-margin, % | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec Jul-Sep Apr-Jun | Jan-Mar | ||
| Engineering & Equipment | 8.2 | 9.6 | 7.8 | 5.4 | 6.3 | 9.1 | 8.0 | 4.6 |
| Flow Technology | 10.5 | 13.6 | 11.4 | 9.6 | 6.6 | 9.3 | 11.7 | 7.8 |
Special Products 15.4 14.6 16.1 13.7 14.1 17.3 15.6 16.2 11.6 12.2 11.8 10.1 9.2 11.8 11.1 9.4
| 2011 | 2010 | |
|---|---|---|
| SEK million | 31 Dec | 31 Dec |
| Goodwill | 822 | 712 |
| Other intangible assets | 888 | 761 |
| Property, plant and equipment | 706 | 657 |
| Financial assets | 45 | 50 |
| Inventories | 1,328 | 1,183 |
| Accounts receivable, trade | 1,263 | 1,047 |
| Other receivables | 149 | 164 |
| Cash and cash equivalents | 264 | 219 |
| Total assets | 5,465 | 4,793 |
| Equity | 2,064 | 1,744 |
| Long-term borrowings and pension liabilites | 745 | 893 |
| Other non-current liabilities | 347 | 277 |
| Short-term borrowings | 1,007 | 716 |
| Accounts payable, trade | 556 | 493 |
| Other current liabilities | 746 | 670 |
| Total equity and liabilities | 5,465 | 4,793 |
| Attributable to equity holders of the parent company SEK million |
2011 Jan-Dec |
2010 jan-dec |
|---|---|---|
| Opening equity | 1,742 | 1,644 |
| Total comprehensive income for the period | 524 | 270 |
| Dividend | -2041) | -1721) |
| Closing equity | 2,062 | 1,742 |
| 1) Dividend per share for 2010 is SEK 5.10 (4.30). | ||
| Equity, attributable to: | ||
| Equity holders of the parent company | 2,062 | 1,742 |
| Non-controlling interests | 2 | 2 |
| 2,064 | 1,744 |
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Cash flow from operating activities | ||||
| before change in working capital | 223 | 131 | 764 | 616 |
| Change in working capital | 58 | 133 | -55 | 40 |
| Cash flow from operating activities | 281 | 264 | 709 | 656 |
| Net capital expenditures in non-current assets | -27 | -40 | -139 | -111 |
| Company acquisitions and divestments | -18 | -35 | -467 | -684 |
| Change in other financial assets | -1 | 0 | 13 | 0 |
| Cash flow from investing activities | -46 | -75 | -593 | -795 |
| Net borrowings | -211 | -210 | 134 | 321 |
| Dividend paid out | - | - | -204 | -172 |
| Cash flow from financing activities | -211 | -210 | -70 | 149 |
| Cash flow for the period | 24 | -21 | 46 | 10 |
| Cash and cash equivalents at start of period | 245 | 242 | 219 | 229 |
| Exchange rate differences | -5 | -2 | -1 | -20 |
| Cash and cash equivalents at end of period | 264 | 219 | 264 | 219 |
| 2011 | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
| Net sales, SEK million | 7,994 | 6,745 | 6,271 | 6,778 |
| Sales growth, % | 19 | 8 | -8 | 20 |
| EBITA, SEK million | 917 | 703 | 594 | 820 |
| EBITA margin, % | 11.5 | 10.4 | 9.5 | 12.1 |
| Operating capital, SEK million | 3,552 | 3,134 | 2,584 | 2,569 |
| Return on operating capital, % | 26 | 23 | 22 | 37 |
| Return on equity, % | 29 | 24 | 21 | 38 |
| Interest-bearing net debt, SEK million | 1,488 | 1,390 | 940 | 972 |
| Net debt/equity ratio, % | 72 | 80 | 57 | 61 |
| Net debt/EBITDA, times | 1.4 | 1.7 | 1.4 | 1.1 |
| Equity ratio, % | 38 | 36 | 41 | 36 |
| Average number of employees | 3,778 | 3,420 | 3,122 | 2,728 |
| Number of employees at the end of the period | 3,807 | 3,444 | 3,040 | 3,269 |
| Attributable to equity holders of the parent company Key ratios per share 1) |
||||
| Earnings per share, SEK | 13.50 | 10.18 | 8.53 | 12.75 |
| Equity per share, SEK | 51.55 | 43.55 | 41.10 | 39.93 |
| Cash flow from operating activities per share, SEK | 17.73 | 16.40 | 13.95 | 12.25 |
1)Based on 40,000,000 shares which corresponds to the number of shares outstanding during all periods in the table. There is no dilutive effect.
All of the shares were acquired in the Abima Group's parent company, Aschera AG (name changed to Indutrade Switzerland); Hamberger Armaturen AG, Switzerland; Dantherm Filtration Oy (name changed to Tecalemit Filtration Oy), Finland; ATB Automation n.v.-s.a., Belgium; Mijnsbergen b.v., Alcatraz Interlocks BV and MW Instruments BV, the Netherlands; and Abelko Innovation AB, Torell Pump AB, AD MediCal AB and AG Johansons Metallfabrik AB, Sweden. In addition, the air treatment business of Enervent Oy, Finland, was acquired.
Tecalemit Filtration Oy, with annual sales of approximately SEK 30 million, is consolidated in the Group as from 1 January 2011. The company specialises in air filtration and provides customised solutions and components to customers in the forestry, paper, metal and recycling industries, among others. In August, a business that manufactures automated air treatment systems, with annual sales of approximately SEK 17 million, was acquired from Enervent Oy in Finland.
Torell Pump AB, with annual sales of approximately SEK 40 million, is consolidated in the Group as from 1 June 2011. The company sells pumps, compressors and equipment for purification of municipal and industrial wastewater, process water and sewage. AG Johansons Metallfabrik AB, with annual sales of approximately SEK 12 million, is consolidated in the Group as from 1 October 2011. The company manufactures and markets valves and high-alloy stainless steel pipe components.
AD MediCal AB, with annual sales of approximately SEK 30 million, is consolidated in the Group as from 1 October 2011. The company provides products, service and maintenance of advanced medical technology equipment.
The Swiss industrial group Abima, with annual sales of approximately SEK 400 million, is active in control and regulation of flows, insulation against cold, heat and sound, rust/corrosion prevention and fire safety. Mijnsbergen b.v. and ATB Automation n.v.-s.a., with combined annual sales of approximately SEK 60 million, deliver customised solutions with a broad range of products in power transmission and motion control. These companies are consolidated in the Indutrade Group as from 1 January 2011.
Abelko Innovation AB, with annual sales of approximately SEK 60 million, is consolidated in the Group as from 1 February 2011. The company offers specially adapted solutions for energy measurement, remote control, building automation, energy optimisation and operational monitoring.
Alcatraz Interlocks BV, with annual sales of approximately SEK 20 million, is consolidated in the Group as from 1 April 2011. The company designs and manufactures interlocking systems that secure critical installations. Its applications are used in the oil, gas, chemical and offshore industries, among others.
Hamberger Armaturen AG, with annual sales of approximately SEK 10 million, is consolidated in the Group as from 1 July 2011. The company is active in pumps and valves, among other areas.
MW-Instruments BV, with annual sales of approximately SEK 10 million, is consolidated in the Group as from 1 September 2011. The company is active in instrument service.
Acquired assets in Indutrade Switzerland AG, Tecalemit Filtration Oy, Mijnsbergen b.v., ATB Automation n.v.-s.a., Abelko Innovation AB, Alcatraz Interlock BV, Torell Pump AB, Hamberger Armaturen AG, MW-Instruments BV, AD MediCal AB, AG Johansons Metallfabrik AB and an air treatment business.
| SEK million | |||
|---|---|---|---|
| Purchase price, incl. contingent earn-out payment totalling SEK 100 million | 482 | ||
| Acquired assets | Book value |
Fair value adjustment |
Fair value |
| Goodwill | - | 98 | 98 |
| Agencies, trademarks, customer relations, licences, etc. | 6 | 209 | 215 |
| Property, plant and equipment | 25 | - | 25 |
| Financial assets | 15 | - | 15 |
| Inventories | 78 | - | 78 |
| Other current assets | 176 | - | 176 |
| Cash and cash equivalents | 32 | - | 32 |
| Deferred tax liability | -1 | -50 | -51 |
| Interest-bearing loans and pension liabilities | -3 | -7 | -10 |
| Other operating liabilities | -96 | - | -96 |
| 232 | 250 | 482 |
Agencies, customer relationships, licences, etc. are amortised over a 10-year period, while trademarks are assumed to have a perpetual lifetime. Trademarks are included in the amount of SEK 34 million.
Indutrade normally uses an acquisition structure entailing a base level of consideration plus a contingent earn-out payment. Initially, earn-out payments are valued at the present value of the likely outcome, which for the acquisitions made during the year amounted to SEK 100 million. The earn-out payments fall due for payment within one to four years and can amount to a maximum of SEK 111 million. If the conditions are not met for the maximum earn-out payment, the outcome may be SEK 0.
Transaction costs for the acquisitions carried out during the year amounted to SEK 2 million and are included in "Other income and expenses" in the income statement. No revaluation of conditional earn-out payments has been made.
| Cash flow impact | |
|---|---|
| Purchase price, incl. contingent earn-out payment | 482 |
| Contingent earn-out payments not paid out | -100 |
| Cash and cash equivalents in acquired companies | -32 |
| Contingent earn-out payments pertaining to previous years' acquitions | 117 |
| Total cash flow impact | 467 |
| SEK million | Net sales | EBITA | |||
|---|---|---|---|---|---|
| Business area | Oct-Dec | Jan-Dec | Oct-Dec | Jan-Dec | |
| Engineering & Equipment | 7 | 46 | 0 | 2 | |
| Flow Technology | 16 | 133 | 5 | 19 | |
| Industrial Components | 8 | 8 | 0 | 0 | |
| Special Products | 175 | 611 | 26 | 68 | |
| Effect on Group | 206 | 798 | 31 | 89 | |
| Acquisitions carried out in 2010 | 0 | 143 | 0 | 17 | |
| Acquisitions carried out in 2011 | 206 | 655 | 31 | 72 | |
| Effect on Group | 206 | 798 | 31 | 89 |
If all of the acquired units had been consolidated as from 1 January 2011, net sales for the year would have amounted to SEK 8,058 million and EBITA would have amounted to SEK 924 million.
Two acquisitions were carried out in January 2012.
Rostfria VA-system i Storfors AB, with annual sales of approximately SEK 15 million, supplies pump stations and pipe systems to water treatment plants. The company is part of the Flow Technology business area.
Dasa Control Systems AB, with annual sales of approximately SEK 50 million, supplies internally developed, advanced control and communication systems for heavy vehicles. The company is part of the Special Products business area.
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 4 | 4 | 4 | 4 |
| Gross profit | 4 | 4 | 4 | 4 |
| Administrative expenses | -10 | -13 | -47 | -44 |
| Other income and expenses | 0 | 1 | 0 | -1 |
| Operating profit | -6 | -8 | -43 | -41 |
| Financial income/expenses | -9 | -8 | -39 | -14 |
| Profit from participation in Group companies | 501 | 267 | 767 | 628 |
| Profit after financial items | 486 | 251 | 685 | 573 |
| Appropriations | -106 | -53 | -106 | -53 |
| Income Tax | -99 | -54 | -82 | -45 |
| Net profit for the period | 281 | 144 | 497 | 475 |
| Depreciation of property, plant | ||||
| and equipment | -1 | -1 | -1 | -1 |
| 2011 | 2010 | |
|---|---|---|
| SEK million | 31 Dec | 31 Dec |
| Intangible assets | 1 | 2 |
| Property, plant and equipment | 1 | 1 |
| Financial assets | 2,002 | 1,678 |
| Current receivables | 1,323 | 1,083 |
| Cash and cash equivalent | 7 | 5 |
| Total assets | 3,334 | 2,769 |
| Equity | 1,477 | 1,184 |
| Untaxed reserves | 160 | 54 |
| Non-current liabilities | 472 | 475 |
| Non-current provisions | 59 | 8 |
| Current provisions | 29 | 121 |
| Current interest-bearing liabilities | 1,068 | 866 |
| Current noninterest-bearing liabilities | 69 | 61 |
| Total equity and liabilities | 3,334 | 2,769 |
| Earnings per share | Net profit for the period devided by the average number of shares outstanding. |
|---|---|
| EBITA | Operating profit before amortisation of intangible assets arising in connection with company acquisitions (Earnings Before Interest, Tax and Amortisation). |
| EBITA margin | EBITA as a percentage of net sales for the period. |
| EBITDA | Operating profit before depreciation and amortisation (Earnings Before Interest, Tax, Depreciation and Amortisation). |
| Equity per share | Equity divided by the number of shares outstanding. |
| Equity ratio | Shareholders' equity as a percentage of total assets. |
| Gross margin | Gross profit divided by net sales. |
| Intangible non-current assets | Goodwill, agencies, customer relationships, trademarks, software, licenses and other intangible non-current assets. |
| Interest-bearing net debt | Borrowings including Pension liability, less cash and cash equivalents. |
| Net capital expenditures | Purchases less sales of intangible assets, and of property, plant and equipment, excluding those included in acquisitions and divestments of subsidiaries and operations. |
| Net debt/equity ratio | Interest-bearing net debt devided by shareholders' equity. |
| Operating capital | Interest-bearing net debt and shareholders' equity. |
| Property, plant and equipment | Buildings, land, machinery and equipment. |
| Return on equity | Net profit for the period devided by average equity per quarter. |
| Return on operating capital | EBITA as a percentage of average operating capital per quarter. |
Indutrade markets and sells components, systems and services with a high-tech content to industrial customers in selected niches. The Group creates value for its customers by structuring the value chain and increasing the efficiency of its customers' use of technological components and systems. For the Group's suppliers, value is created through the offering of an efficient sales organisation with high technical expertise and well developed customer relations.
Indutrade's business is distinguished by the following factors, among others:
The Group is structured into four business areas: Engineering & Equipment, Flow Technology, Industrial Components and Special Products.
The Group's financial targets (per year across a business cycle) are to grow by 10%, to attain a minimum EBITA margin of 10% and a return on operating capital exceeding 25%.
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