Quarterly Report • May 3, 2012
Quarterly Report
Open in ViewerOpens in native device viewer
| 2012 | 2011 | 2011/12 | 2011 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net Sales | 1,982 | 1,816 | 9% | 8,160 | 7,994 |
| EBITA | 192 | 183 | 5% | 926 | 917 |
| EBITA margin, % | 9.7 | 10.1 | 11.3 | 11.5 | |
| Profit after financial items | 146 | 137 | 7% | 738 | 729 |
| Net profit | 110 | 101 | 9% | 549 | 540 |
| Earnings per share, SEK 1) | 2.75 | 2.53 | 9% | 13.73 | 13.50 |
| Return on operating capital, % | 25 | 23 | 25 | 26 |
1) Attributable to equity holders of the parent company
Earnings rose during the first quarter even though we have not yet begun delivering the large orders we received from the energy sector last year. Order intake during the quarter was volatile, with a strong start and weaker finish. The market is showing a divergent demand situation. While the energy sector remains strong and the Finnish market is showing continued growth, customers in general have grown more cautious and are more uncertain about the future compared with a year ago. However, several major customers anticipate a stronger second half of 2012.
Order intake during the quarter totalled SEK 2,255 million (2,068), with a favourable performance for the Flow Technology, Engineering & Equipment and Special Products business areas. Industrial Components, which supplies industrial consumables to a higher degree than the other business areas, had weaker performance. The tendency during the quarter was that the first two months were stronger than the third. Overall, the increase in order intake was 9%, of which acquisitions accounted for 3%.
Sales totalled SEK 1,982 million (1,816), an increase of 9%, of which 6% was organic. Order intake during the quarter thereby outpaced sales by 14%, which is positive for the future.
The general unease about the development of the global economy is causing many customers to be more cautious and to not order more than their short-term needs. Another sign of slower growth than previously is that among many suppliers, capacity is more in sync with needs now than in 2011, although there are still exceptions.
General engineering is the segment that is showing falling demand, which corresponds well to the picture communicated by many large engineering companies.
Flow Technology posted favourable invoicing but lower earnings, as the share of project orders with low margin was higher during the quarter than normal.
For Engineering & Equipment, which has its markets in Finland and the Baltic countries, the positive trend from last year continued.
The Group's largest business area, Special Products, had continued strong order intake from the energy sector during the quarter and will begin delivering for the high level of orders received toward the end of last year in the coming quarter.
The gross margin, at 33.9%, was marginally better than the corresponding period a year ago as well as the full year 2011. The differences between the quarters are due to changes in the product mix. The EBITA margin fell to 9.7% (10.1%), which is attributable to the product mix in Flow Technology and lower sales for Industrial Components.
Indutrade carried out two small acquisitions during the quarter – one in Switzerland and one in Sweden – and two larger ones – Dasa Control in Sweden and Geotrim in Finland. After the end of the quarter, the company Rubin Medical was acquired in Sweden. Thus during the year to date, companies with combined annual sales of nearly SEK 300 million have been acquired.
The energy sector will perform well during the year, and businesses in Flow Technology will also see stable demand. For our other business areas, it is not possible to make an accurate forecast. Several major customers have a positive outlook – above all for the latter part of the year – but I sense a high level of uncertainty. What's important for Indutrade's companies is to maintain a continued high level of cost flexibility.
Johnny Alvarsson, President and CEO
Sales growth
Order intake during the period January–March amounted to SEK 2,255 million (2,068), an increase of 9%. For comparable units, order intake rose 6%, while acquired growth was 3%. Currency movements had a marginally positive effect on order intake, by SEK 8 million.
Following a strong start to the year, in line with the close of 2011, the latter part of the first quarter was characterised by a slower pace of growth and rising uncertainty. Order intake was the highest ever during a single quarter. As a whole, all business areas except Industrial Components noted an increase in order intake for comparable units during the quarter.
The positive trend from 2011, with favourable demand from the international industrial sector, continued into the first quarter of the current year. Demand softened somewhat for components for the general engineering industry and commercial vehicles, while most other segments experienced stable or rising demand.
Net sales for the quarter totalled SEK 1,982 million (1,816), an increase of 9%. For comparable units the increase was 6%, while acquired growth was 3%. Currency movements were marginally favourable and affected sales by SEK 7 million.
For Industrial Components, like-for-like net sales decreased slightly, while they rose for the other business areas by 7%–9%.
Operating profit before amortisation of intangible assets (EBITA) amounted to SEK 192 million (183) for the period, an increase of 5%. The operating margin before amortisation of intangible assets (the EBITA margin) was 9.7% (10.1%).
The gross margin was essentially unchanged, at 33.9% (34.0%).
The lower EBITA margin is attributable to a product mix with lower margin in the Flow Technology business area, lower sales in the Industrial Components business area, as well as strengthening of resources and higher costs for comparable units, resulting in a higher percentage of overheads.
Earnings and the EBITA margin rose for Engineering & Equipment and Special Products, while the opposite applied for Flow Technology and Industrial Components. Both acquired and comparable companies made a positive contribution to the earnings increase, and the EBITA margin for acquired companies was on a par with the Group average. Currency effects from translation of foreign units had no impact on profit for the period.
Net financial items amounted to SEK -21 million (-23), of which net interest expense was SEK -19 million (-21). Tax on profit for the period was SEK -36 million (-36), corresponding to a tax charge of 24.7% (26.3%). A small, one-time effect of a reduced tax rate in Finland lowered the tax charge during the quarter by 0.5 percentage point. Profit after tax rose 9% to SEK 110 million (101). Earnings per share increased to SEK 2.75 (2.53).
The return on operating capital was 25% (23%), and the return on equity was 28% (25%).
Engineering & Equipment's operations involve sales of components 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.
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 380 | 339 | 1,601 | 1,560 |
| EBITA | 27 | 19 | 129 | 121 |
| EBITA margin, % | 7.1 | 5.6 | 8.1 | 7.8 |
Net sales rose 12% during the quarter, to SEK 380 million (339). The increase for comparable units was 9%. Acquisitions contributed 3%, while currency movements had no effect on net sales.
At the end of 2011, demand in the Finnish market, where the business area conducts most of its business, remained favourable during the first quarter, but with a slightly slower pace of growth. Activity in the water/wastewater segment, which usually experiences a seasonal increase after the winter, got off to a late start this year. Demand from the engineering and chemical industries was stable, while activity in the pulp & paper and construction industries was dampened somewhat.
EBITA for the period rose 42% to SEK 27 million (19), corresponding to an EBITA margin of 7.1% (5.6%). In early March the company Geotrim Oy was acquired, with annual sales of SEK 100 million.
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.
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 479 | 423 | 1,986 | 1,930 |
| EBITA | 38 | 42 | 217 | 221 |
| EBITA margin, % | 7.9 | 9.9 | 10.9 | 11.5 |
Net sales totalled SEK 479 million (423) during the quarter, an increase of 13%. The increase for comparable units was 9%, while acquired growth was 4%. Currency movements had no effect on net sales.
Demand developed well during the start of the year, albeit with a slightly slower pace of growth towards the end of the quarter. Among the more important customer segments, energy and water/wastewater were stable, while business in the marine segment was slow due to a decrease in newbuilding activity, although with favourable order intake from the aftermarket. Offshore activity did well primarily in Norway, while the chemicals segment was stable, including international projects.
EBITA for the period decreased by 9% to SEK 38 million (42), and the EBITA margin was 7.9% (9.9%). The lower EBITA margin is attributable in part to a lower gross margin resulting from a high share of projects during the period with low gross margins and in part to a strengthening of resources in some parts of the business area.
In January the company Rostfria VA-system i Storfors AB was acquired, with annual sales of SEK 15 million.
1 Comparative figures for the business areas in 2011 have been changed as a result of the transfer of companies between the various business areas. For further details, see separate press release issued on 27 April 2012.
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 customer's production processes and needs.
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 366 | 371 | 1,483 | 1,488 |
| EBITA | 35 | 44 | 158 | 167 |
| EBITA margin, % | 9.6 | 11.9 | 10.7 | 11.2 |
Net sales decreased by 1% during the quarter, to SEK 366 million (371). The decrease for comparable units was 3%. Acquisitions contributed 2%, while currency movements had no effect on net sales.
Like the trend towards the end of 2011, a slight softening was noted in demand for certain components for the engineering industry and commercial vehicles at the same time that demand for investment goods remained favourable. Demand levelled out somewhat towards the end of the quarter.
EBITA for the period decreased by 20% to SEK 35 million (44), corresponding to an EBITA margin of 9.6% (11.9%). The drop in earnings and margin is attributable to slightly lower sales combined with higher costs.
In April the company Rubin Medical AB was acquired, with annual sales of approximately SEK 100 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.
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 773 | 691 | 3,134 | 3,052 |
| EBITA | 104 | 92 | 464 | 452 |
| EBITA margin, % | 13.5 | 13.3 | 14.8 | 14.8 |
Net sales rose 12% during the quarter, to SEK 773 million (691), of which sales for comparable units rose 7%. Acquired growth was 4%, while currency movements affected net sales by 1%.
The business area experienced continued strong demand at the start of the year from the international energy market. A large share of deliveries of orders received at the end of 2011 and start of 2012 in this segment will be made in the coming quarter. In measurement technology, demand from the wind power segment was also favourable during the period. Aside from the energy sector, the engineering industry is the business area's most important customer segment, where demand on the whole is somewhat dampened.
EBITA increased by 13% to SEK 104 million (92), and the EBITA margin was 13.5% (13.3%).
In January, the company Dasa Control System AB was acquired, with annual sales of approximately SEK 50 million, and in March the Swiss company Eco Analytics AG was acquired, with annual sales of SEK 22 million.
Shareholders' equity amounted to SEK 2,155 million (1,816), and the equity ratio was 37% (33%).
Cash and cash equivalents amounted to SEK 245 million (319). In addition to this, the Group had unutilised credit promises of SEK 1,007 million (769). Interest-bearing net debt amounted to SEK 1,594 million (1,712). The net debt/equity ratio at the end of the period was 74% (94%).
Cash flow from operating activities was SEK 73 million (97). Cash flow after net capital expenditures in property, plant and equipment (excluding company acquisitions) was SEK 38 million (57).
The Group's net capital expenditures (excluding company acquisitions) amounted to SEK 35 million (40). Depreciation of property, plant and equipment amounted to SEK 26 million (24). Investments in company acquisitions amounted to SEK 136 million (386), of which earn-out payments pertaining to previous years' acquisitions amounted to SEK 30 million (107).
The number of employees was 3,860 at the end of the period (3,807 at start of year). Seventy employees were added through acquisitions.
The Group has acquired the following companies, which are consolidated for the first time in 2012.
| Acquisitions | Business area | SEK m* | No. of employees* |
|---|---|---|---|
| Rostfria VA-system i Storfors AB | Flow Technology | 15 | 5 |
| Dasa Control System AB | Special Products | 50 | 27 |
| Geotrim Oy | Engineering & Equipment | 100 | 30 |
| Eco Analytics AG | Special Products | 22 | 8 |
| 187 | 70 | ||
| Net sales/ |
*Estimated annual sales and number of employees at the time of acquisition.
Further information about company acquisitions can be found on page 13 in this interim report.
In April the Industrial Components business area acquired all of the shares in Rubin Medical AB, with annual sales of approximately SEK 100 million. Rubin Medical supplies medical technology products with a focus on diabetes therapy in Scandinavia. The main products are insulin pumps, infusion sets and other devices. The company also has a unique service concept featuring 24-hour customer support.
In other respects, no important events for the Group have occurred after the end of the reporting period.
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 0 million (0) during the period. The Parent Company's investments in financial assets, consisting mainly of company acquisitions, amounted to SEK 34 million (309). 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 March was 10 (9).
The Indutrade Group conducts business in 23 countries in four world regions, through some 160 companies. This diversification, 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 2011 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 2011 Annual Report.
No transactions took place during the period 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 interim 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 2011 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.
Stockholm, 3 May 2012
Indutrade AB (publ)
Johnny Alvarsson President and CEO
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 2 p.m. on 3 May 2012.
For further information, please contact: Johnny Alvarsson, President and CEO, tel: +46 70 589 17 95.
The report will be commented upon as follows:
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net Sales | 1,982 | 1,816 | 8,160 | 7,994 |
| Cost of goods sold | -1,311 | -1,198 | -5,381 | -5,268 |
| Gross profit | 671 | 618 | 2,779 | 2,726 |
| Development costs | -24 | -15 | -83 | -74 |
| Selling costs | -374 | -341 | -1,463 | -1,430 |
| Administrative expenses | -107 | -102 | -403 | -398 |
| Other operating income and expenses | 1 | 0 | -1 | -2 |
| Operating profit | 167 | 160 | 829 | 822 |
| Net financial items | -21 | -23 | -91 | -93 |
| Profit after financial items | 146 | 137 | 738 | 729 |
| Income Tax | -36 | -36 | -189 | -189 |
| Net profit for the period | 110 | 101 | 549 | 540 |
| Net profit, attributable to: | ||||
| Equity holders of the parent company | 110 | 101 | 549 | 540 |
| Non-controlling interests | 0 | 0 | 0 | 0 |
| 110 | 101 | 549 | 540 | |
| Earnings per share for the period, attributable | ||||
| to equity holders of the parent company 1) | 2.75 | 2.53 | 13.73 | 13.50 |
| EBITA | 192 | 183 | 926 | 917 |
| Operating profit includes: | ||||
| Amortisation of intangible assets | -27 | -25 | -106 | -104 |
| Depreciation of property, plant and equipment | -26 | -24 | -104 | -102 |
1) Earnings for the period divided by 40,000,000 shares. There is no dilutive effect.
| Net profit for the period | 110 | 101 | 549 | 540 |
|---|---|---|---|---|
| Other comprehensive income | ||||
| Fair value adjustments of hedge instruments | 12 | 6 | -27 | -33 |
| Tax attributable to fair value adjustments | -3 | -1 | 7 | 9 |
| Actuarial gains/losses | - | - | 15 | 15 |
| Tax on actuarial gains/losses | - | - | -5 | -5 |
| Exchange rate differences | -28 | -34 | 4 | -2 |
| Other comprehensive income for the period, net of tax |
-19 | -29 | -6 | -16 |
| Total comprehensive income for the period | 91 | 72 | 543 | 524 |
| Net profit, attributable to: | ||||
| Equity holders of the parent company | 91 | 72 | 543 | 524 |
| Non-controlling interests | 0 | 0 | 0 | 0 |
| 91 | 72 | 543 | 524 |
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| Net sales, SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Engineering & Equipment | 380 | 339 | 1,601 | 1,560 |
| Flow Technology | 479 | 423 | 1,986 | 1,930 |
| Industrial Components | 366 | 371 | 1,483 | 1,488 |
| Special Products | 773 | 691 | 3,134 | 3,052 |
| Parent company and Group items | -16 | -8 | -44 | -36 |
| 1,982 | 1,816 | 8,160 | 7,994 | |
| 2012 | 2011 | 2011/12 | 2011 | |
| EBITA, SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Engineering & Equipment | 27 | 19 | 129 | 121 |
| Flow Technology | 38 | 42 | 217 | 221 |
| Industrial Components | 35 | 44 | 158 | 167 |
| Special Products | 104 | 92 | 464 | 452 |
| Parent company and Group items | -12 | -14 | -42 | -44 |
| 192 | 183 | 926 | 917 | |
| 2012 | 2011 | 2011/12 | 2011 | |
| EBITA margin, % | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Engineering & Equipment | 7.1 | 5.6 | 8.1 | 7.8 |
| Flow Technology | 7.9 | 9.9 | 10.9 | 11.5 |
| Industrial Components | 9.6 | 11.9 | 10.7 | 11.2 |
| Special Products | 13.5 | 13.3 | 14.8 | 14.8 |
| 9.7 | 10.1 | 11.3 | 11.5 |
| 2012 | 2011 | ||||
|---|---|---|---|---|---|
| Net sales, SEK million | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Engineering & Equipment | 380 | 424 | 409 | 388 | 339 |
| Flow Technology | 479 | 515 | 513 | 479 | 423 |
| Industrial Components | 366 | 401 | 350 | 366 | 371 |
| Special Products | 773 | 833 | 740 | 788 | 691 |
| Parent company and Group items | -16 | -15 | -7 | -6 | -8 |
| 1,982 | 2,158 | 2,005 | 2,015 | 1,816 | |
| 2012 | 2011 | ||||
| EBITA, SEK million | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Engineering & Equipment | 27 | 34 | 39 | 29 | 19 |
| Flow Technology | 38 | 52 | 71 | 56 | 42 |
| Industrial Components | 35 | 43 | 38 | 42 | 44 |
| Special Products | 104 | 129 | 107 | 124 | 92 |
| Parent company and Group items | -12 | -7 | -10 | -13 | -14 |
| 192 | 251 | 245 | 238 | 183 | |
| 2012 | 2011 | ||||
| EBITA margin, % | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Engineering & Equipment | 7.1 | 8.0 | 9.5 | 7.5 | 5.6 |
| Flow Technology | 7.9 | 10.1 | 13.8 | 11.7 | 9.9 |
| Industrial Components | 9.6 | 10.7 | 10.9 | 11.5 | 11.9 |
| Special Products | 13.5 | 15.5 | 14.5 | 15.7 | 13.3 |
| 9.7 | 11.6 | 12.2 | 11.8 | 10.1 |
| 2012 | 2011 | 2011 | |
|---|---|---|---|
| SEK million | 31 Mar | 31 Mar | 31 Dec |
| Goodwill | 870 | 752 | 822 |
| Other intangible assets | 918 | 880 | 888 |
| Property, plant and equipment | 723 | 680 | 706 |
| Financial assets | 51 | 51 | 45 |
| Inventories | 1,413 | 1,253 | 1,328 |
| Accounts receivable, trade | 1,323 | 1,233 | 1,263 |
| Other receivables | 218 | 259 | 149 |
| Cash and cash equivalents | 245 | 319 | 264 |
| Total assets | 5,761 | 5,427 | 5,465 |
| Equity | 2,155 | 1,816 | 2,064 |
| Long-term borrowings and pension liabilites | 1,045 | 1,272 | 745 |
| Other non-current liabilities | 367 | 364 | 347 |
| Short-term borrowings | 794 | 759 | 1,007 |
| Accounts payable, trade | 618 | 572 | 556 |
| Other current liabilities | 782 | 644 | 746 |
| Total equity and liabilities | 5,761 | 5,427 | 5,465 |
| Attributable to equity holders of the parent company | 2012 | 2011 | 2011 |
|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Jan-Dec |
| Opening equity | 2,062 | 1,742 | 1,742 |
| Total comprehensive income for the period | 91 | 72 | 524 |
| Dividend | 1) - |
- | -2042) |
| Closing equity | 2,153 | 1,814 | 2,062 |
| 1) The proposed dividend per share 2011 is SEK 6.75 2) Dividend per share 2010 was SEK 5.10 |
|||
| Equity, attributable to: | |||
| Equity holders of the parent company | 2,153 | 1,814 | 2,062 |
| Non-controlling interests | 2 | 2 | 2 |
| 2,155 | 1,816 | 2,064 |
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Cash flow from operating activities | ||||
| before change in working capital | 154 | 123 | 795 | 764 |
| Change in working capital | -81 | -26 | -110 | -55 |
| Cash flow from operating activities | 73 | 97 | 685 | 709 |
| Net capital expenditures in non-current assets | -35 | -40 | -134 | -139 |
| Company acquisitions and divestments | -136 | -386 | -217 | -467 |
| Change in other financial assets | -1 | 14 | -2 | 13 |
| Cash flow from investing activities | -172 | -412 | -353 | -593 |
| Net borrowings | 85 | 418 | -199 | 134 |
| Dividend paid out | - | - | -204 | -204 |
| Cash flow from financing activities | 85 | 418 | -403 | -70 |
| Cash flow for the period | -14 | 103 | -71 | 46 |
| Cash and cash equivalents at start of period | 264 | 219 | 319 | 219 |
| Exchange rate differences | -5 | -3 | -3 | -1 |
| Cash and cash equivalents at end of period | 245 | 319 | 245 | 264 |
| 2012 | 2011 | 2011 | 2010 | 2009 | |
|---|---|---|---|---|---|
| Moving 12 mos | 31 Mar | 31 Dec | 31 Mar | 31 Dec | 31 Dec |
| Net sales, SEK million | 8,160 | 7,994 | 7,034 | 6,745 | 6,271 |
| Sales growth, % | 16 | 19 | 16 | 8 | -8 |
| EBITA, SEK million | 926 | 917 | 742 | 703 | 594 |
| EBITA margin, % | 11.3 | 11.5 | 10.5 | 10.4 | 9.5 |
| Operating capital, SEK million | 3,749 | 3,552 | 3,528 | 3,134 | 2,584 |
| Return on operating capital, % | 25 | 26 | 23 | 23 | 22 |
| Return on equity, % | 28 | 29 | 25 | 24 | 21 |
| Interest-bearing net debt, SEK million | 1,594 | 1,488 | 1,712 | 1,390 | 940 |
| Net debt/equity ratio, % | 74 | 72 | 94 | 80 | 57 |
| Net debt/EBITDA, times | 1.5 | 1.4 | 2.0 | 1.7 | 1.4 |
| Equity ratio, % | 37 | 38 | 33 | 36 | 41 |
| Average number of employees | 3,802 | 3,778 | 3,438 | 3,420 | 3,122 |
| Number of employees at the end of the period | 3,860 | 3,807 | 3,717 | 3,444 | 3,040 |
| Attributable to equity holders of the parent company | |||||
| Key ratios per share 1) | |||||
| Earnings per share, SEK | 13.73 | 13.50 | 10.55 | 10.18 | 8.53 |
| Equity per share, SEK | 53.83 | 51.55 | 45.35 | 43.55 | 41.10 |
| Cash flow from operating activities per share, SEK | 17.13 | 17.73 | 17.40 | 16.40 | 13.95 |
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 have been acquired in Rostfria VA-system i Storfors AB and Dasa Control Systems AB (Sweden), Eco Analytics AG (Switzerland), and in Geotrim Oy (Finland).
Geotrim Oy, in Helsinki, Finland, supplies instruments, systems and software for geospatial solutions in qualified, satellite-based positioning. The company provides own networks with coverage throughout Finland. Geotrim Oy has annual sales of approximately SEK 100 million and is consolidated in the Group as from 1 March 2012.
Rostria VA-system i Storfors AB, with annual sales of approximately SEK 15 million, is consolidated in the Group as from 1 January 2012. The company supplies pump stations and pipe systems to water treatment plants.
Dasa Control System AB, with annual sales of approximately SEK 50 million, supplies proprietary advanced control and communication systems for heavy vehicles. The company is consolidated in the Group as from 1 January 2012. Eco Analytics AG, with annual sales of approximately SEK 22 million, is active in gas and water analysis and offers a comprehensive production programme of gas meters for toxic or explosive gases. Eco Analytics AG is consolidated in the Group as from 1 March 2012.
| Purchase price, incl. contingent earn-out payment totalling SEK 18 million | 187 | ||
|---|---|---|---|
| Acquired assets | Book value |
Fair value adjustment |
Fair value |
| Goodwill | - | 52 | 52 |
| Agencies, trademarks, customer relations, licences, etc. | 1 | 52 | 53 |
| Property, plant and equipment | 14 | 8 | 22 |
| Financial assets | 0 | - | 0 |
| Inventories | 35 | - | 35 |
| Other current assets | 25 | - | 25 |
| Cash and cash equivalents | 63 | - | 63 |
| Deferred tax liability | 0 | -15 | -15 |
| Interest-bearing loans and pension liabilities | - | - | 0 |
| Other operating liabilities | -48 | - | -48 |
| 90 | 97 | 187 |
Agencies, customer relationships, licences, etc. are amortised over a 10-year period.
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 to date amounted to SEK 18 million. The earn-out payments fall due for payment within 1–2 years and can amount to a maximum of SEK 20 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 period amounted to SEK 2 million and are included in "Other income and expenses" in the income statement. Contingent earn-out payments for previous years' acquisitions have been revaluated by less than SEK 1 million. The revenue is reported in "Other income and expenses" in the income statement.
| Purchase price, incl. contingent earn-out payment | 187 |
|---|---|
| Contingent earn-out payments not paid out | -18 |
| Cash and cash equivalents in acquired companies | -63 |
| Contingent earn-out payments pertaining to previous years' acquitions | 30 |
| Total cash flow impact | 136 |
| SEK million | Net sales | EBITA |
|---|---|---|
| Business area | Jan-Mar | Jan-Mar |
| Engineering & Equipment | 12 | 1 |
| Flow Technology | 16 | 2 |
| Industrial Components | 5 | 0 |
| Special Products | 25 | 3 |
| Effect on Group | 58 | 6 |
| Acquisitions carried out in 2011 | 30 | 3 |
| Acquisitions carried out in 2012 | 28 | 3 |
| Effect on Group | 58 | 6 |
If all of the acquired units had been consolidated as from 1 January 2012, net sales for the period would have amounted to SEK 1,999 million and EBITA would have amounted to SEK 195 million.
In April the Industrial Components business area acquired all of the shares in Rubin Medical AB, with annual sales of approximately SEK 100 million. Rubin Medical supplies medical technology products with a focus on diabetes therapy in Scandinavia. The main products are insulin pumps, infusion sets and other devices. A preliminary purchase price allocation will be presented in the interim report for the second quarter of 2012.
| 2012 | 2011 | 2011/12 | 2011 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 0 | - | 4 | 4 |
| Gross profit | 0 | - | 4 | 4 |
| Administrative expenses | -13 | -12 | -48 | -47 |
| Other income and expenses | 0 | 0 | 0 | 0 |
| Operating profit | -13 | -12 | -44 | -43 |
| Financial income/expenses | -7 | -9 | -37 | -39 |
| Profit from participation in Group companies | - | - | 767 | 767 |
| Profit after financial items | -20 | -21 | 686 | 685 |
| Appropriations | - | - | -106 | -106 |
| Income Tax | 5 | 5 | -82 | -82 |
| Net profit for the period | -15 | -16 | 498 | 497 |
| Depreciation of property, plant and equipment | 0 | 0 | -1 | -1 |
| 2012 | 2011 | 2011 | |
|---|---|---|---|
| SEK million | 31 Mar | 31 Mar | 31 Dec |
| Intangible assets | 1 | 2 | 1 |
| Property, plant and equipment | 1 | 1 | 1 |
| Financial assets | 2,065 | 1,987 | 2,031 |
| Current receivables | 1,555 | 1,117 | 1,294 |
| Cash and cash equivalent | 0 | 14 | 7 |
| Total assets | 3,622 | 3,121 | 3,334 |
| Equity | 1,462 | 1,168 | 1,477 |
| Untaxed reserves | 160 | 54 | 160 |
| Non-current liabilities | 776 | 851 | 475 |
| Non-current provisions | 62 | 52 | 59 |
| Current provisions | 7 | 17 | 26 |
| Current interest-bearing liabilities | 1,072 | 918 | 1,068 |
| Current noninterest-bearing liabilities | 83 | 61 | 69 |
| Total equity and liabilities | 3,622 | 3,121 | 3,334 |
| 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%.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.