Quarterly Report • Oct 20, 2015
Quarterly Report
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OEM's positive growth trend over the first two quarters of the year has continued in the third quarter too. Thanks to our strong performance and good, stable demand in most of the markets, third-quarter sales increased by 18% compared with the same quarter last year. Organic growth was 5%, excluding the impact of foreign currency and acquisitions. Incoming orders rose 14%.
EBITA rose 21% to SEK 65 million for the third quarter over the year-ago quarter. This represents an EBITA margin of 12.2%, which is well above our long-term target of at least 10%.
Growth is stable and demand is good in both Region Sweden and the Group as a whole. Sales rose 20%, 4% of which was organic, compared with the same quarter last year. The growth is being driven by OEM Automatic and OEM Electronics, the Region's major companies, which have seen a strong increase in business activity over the quarter. Other companies showing the same robust performance are Svenska Batteripoolen, Nexa Trading and Telfa.
The Finland and Baltic states Region continues to surprise positively in the Group. Sales rose 20%, 11% of which was organic growth. This is a very strong performance, particularly at a time when Finland's industries are still facing a difficult economic climate. The Battery and Vision product areas are playing a key part in this upward trajectory, along with a positive performance from the operations in the Baltic states. We have deliberately given priority to growth in sales ahead of growth in profit in the Region. However, we see that the sales growth in the third quarter is starting to have an impact on EBITA.
OEM's third region is generally delivering good growth in most of the markets. The exception is the UK, where the trend remains negative as a result of weak growth in several industrial sectors in which we have a presence. This pulls the sales growth down somewhat at a regional level, which is 14%, 5 percentage points of which are organic, compared with the same quarter last year.
ATC Tape Converting AB, which markets industrial tapes, was acquired during the quarter. The company generates annual sales of approximately SEK 18 million. So far this year, we have completed three acquisitions that have added more than SEK 150 million in annual sales to our company.
It has been "business as usual" for OEM during the third quarter without any significant events occurring. Our success stems from our constant focus on developing and improving the operations in our companies. We have a highly-efficient business model and skilled employees who are out and about doing business every day, creating value for our customers and our suppliers. The recipe for success has worked well and we believe that it will continue to work well in the future too.
Jörgen Zahlin
Managing Director and Chief Executive Officer
Incoming orders in the third quarter increased by 14% to SEK 517 million (453). Comparable entities reported a 7% increase in incoming orders.
Total incoming orders for 2015 increased by 17% to SEK 1,649 million (1,405). Comparable entities reported a 9% increase in incoming orders.
During the January-September period, incoming orders were on a par with net sales. At SEK 264 million, the order book was up by 9% over the corresponding period of the previous year.
Net sales in the third quarter increased by 18% to SEK 530 million (448). Comparable entities reported a 9% increase in net sales. Total net sales for 2015 increased by 20% to SEK 1,650 million (1,380). Comparable entities reported an 11% increase in net sales. Foreign currency exchange rate movements had a beneficial 5% effect on net sales.
OEM Automatic in Sweden, OEM Electronics, Svenska Batteripoolen, Telfa and Nexa Trading and the operations in Finland, Denmark, Norway and Slovakia reported the largest positive growth in net sales compared with last year.
There are marginal percentage changes across the regions, compared with the corresponding period of last year. Region Sweden takes a slightly larger share of the Group as a whole due to strong growth in comparable entities and a major acquisition in Sweden.
Operating profit before amortisation of acquisition-related intangible fixed assets (EBITA) in the third quarter was SEK 65 million (54), which is an increase of 21%. The EBITA margin was at 12% (12%). In total for 2015, operating profit before amortisation of acquisition-related intangible fixed assets (EBITA) was SEK 183 million (146), which is an increase of 25%. The EBITA margin was at 11% (11%).
Profit after tax increased by 27% to SEK 128 million (101).
Earnings per share were SEK 5.54 (4.36).
The return on equity was 7.5% compared with 5.8% in the year-ago quarter. The trailing-twelve-month return on equity was
28%, which exceeds the 20% target. Shareholders' equity amounted to SEK 581 million (511) with an equity/assets ratio of 48%
(45%) on 30 September 2015.
OEM INTERNATIONAL AB (publ) org.nr. 556184-6691, Box 1009, 573 28 Tranås +46 75-242 40 00 4
There are small percentage changes across the regions over the period and all three regions are experiencing stable growth.
OEM Automatic AB, OEM Motor AB, Telfa AB, Svenska Batteripoolen AB, Elektro Elco AB, Nexa Trading AB, OEM Electronics AB, Internordic Bearings AB, Svenska Helag AB, Flexitron AB, Agolux AB, Vanlid Transmission AB, Kübler Svenska AB, AB Ernst Hj Rydahl Bromsbandfabrik and ATC Tape Converting AB.
| SEK million | 2015 Q3 |
2014 Q3 |
2015 Q1 – Q3 |
2014 Q1 – Q3 |
2014 Full year |
Trailing 12 |
|---|---|---|---|---|---|---|
| Incoming orders | 318 | 278 | 1,043 | 881 | 1,213 | 1,375 |
| Net sales | 329 | 275 | 1,050 | 866 | 1,193 | 1,377 |
| EBITA | 49 | 41 | 146 | 115 | 155 | 185 |
| EBITA margin | 15% | 15% | 14% | 13% | 13% | 13% |
Net sales rose 21% to SEK 1,050 million (866) in the January-September 2015 period due to increasing demand on existing entities and the acquisition of AB Ernst Hj Rydahl Bromsbandfabrik. Comparable entities reported a 10% increase. Exchange rate fluctuations had a positive 5% impact on net sales. OEM Automatic, OEM Electronics, Svenska Batteripoolen, Telfa and Nexa Trading account for the largest percentage growth in net sales in Sweden.
Incoming orders were also strong and increased by 18% to SEK 1,043 million (881).
However, during the January-September 2015 period, incoming orders were 1% lower than net sales. EBITA rose 27% to SEK 146 million (115). During the first quarter of the previous year, litigation costs amounted to SEK 4.9 million. When the percentage increase for this litigation is adjusted, the accumulated EBITA increase is 21%.
OEM Automatic FI, Akkupojat Oy, OEM Electronics FI, Scannotec Oy, OEM Automatic OU, OEM Automatic UAB, OEM Automatic SIA, OEM Automatic (Shanghai) Co.Ltd.
| SEK million | 2015 Q3 |
2014 Q3 |
2015 Q1 – Q3 |
2014 Q1 – Q3 |
2014 Full year |
Trailing 12 |
|---|---|---|---|---|---|---|
| Incoming orders | 85 | 69 | 255 | 215 | 287 | 327 |
| Net sales | 82 | 69 | 253 | 212 | 284 | 325 |
| EBITA | 7 | 5 | 19 | 16 | 20 | 22 |
| EBITA margin | 9% | 7% | 7% | 8% | 7% | 7% |
Although demand has generally been slow for Finnish industries, net sales rose 20% to SEK 253 million (212) in the January-September 2015 period. The acquisition of Scannotec in June has increased net sales by 2% and the movement in exchange rates had a beneficial 4% effect on net sales, which means the region reported 14% organic growth in the January-September 2015 period. Incoming orders were also strong and increased by 18% to SEK 255 million (215).
During the January-September 2015 period, incoming orders were on a par with net sales. The Battery and Vision product areas are showing the strongest growth in Finland. Demand is good in the Baltic states where growth was 14% in the January-September 2015 period.
EBITA rose 17% to SEK 19 million (16), due primarily to increased net sales. The EBITA margin has decreased by 1%, despite the increase in sales. This is due to lower margins and ongoing market investments.
OEM Automatic Klitsö A/S, OEM Automatic AS, OEM Automatic Ltd, OEM Automatic Sp z o. o., OEM Electronics PL, OEM Automatic spol. s r.o., OEM Automatic s.r.o., OEM Automatic Kft.
| SEK million | 2015 Q3 |
2014 Q3 |
2015 Q1 – Q3 |
2014 Q1 – Q3 |
2014 Full year |
Trailing 12 |
|---|---|---|---|---|---|---|
| Incoming orders | 114 | 106 | 351 | 308 | 416 | 459 |
| Net sales | 118 | 104 | 347 | 302 | 411 | 455 |
| EBITA | 11 | 10 | 30 | 25 | 32 | 37 |
| EBITA margin | 9% | 10% | 9% | 8% | 8% | 8% |
Net sales rose 15% to SEK 347 million (302) in the January-September 2015 period due to higher demand, particularly in Slovakia, Denmark, Norway, the Czech Republic and Poland. The acquisition has increased net sales by 7% and the movement in exchange rates had a beneficial 5% effect on net sales, which means the region reported 3% organic growth in the January-September 2015 period. Incoming orders increased by 14% to SEK 351 million (308). During the January-September 2015 period, incoming orders were 1% higher than net sales.
EBITA rose 19% to SEK 30 million (25), due primarily to increased sales.
Operating cash flow was SEK 121 million (87) in the January-September period. The total cash flow for the January-September period was SEK -10 million (-116). It was impacted by SEK -49 million (- 33) from investing activities, SEK -98 million (-92) from dividends and SEK 0 million (-231) from redemption of shares.
The Group's investments in property, plant and equipment totalled SEK 47 million (60). Property, machinery and equipment accounted for SEK 22 million (12), and intangible assets for SEK 25 million (48), of which SEK 24 million (47) are related to business combinations.
Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 70 million (59). Cash and cash equivalents, together with committed undrawn credit facilities, amounted to SEK 303 million (268) on 30 September 2015.
Amortisation of intangible assets totalling SEK 19 million (17) has been charged to the income statement. The carrying amount in the Statement of Financial Position on 30 September 2015 was SEK 181 million (178).
On 30 September 2015, the equity/assets ratio was 48% (45%).
The Group's average number of employees for the period was 706 (650). At the end of the period, the number of employees was 721 (656). 54 of them have come from acquired companies.
The company has not repurchased any shares during the period. The company's total shareholding was 61,847 shares on 30 September 2015, which is equivalent to 0.3% of the aggregate number of shares. The Annual General Meeting is authorised to repurchase up to 10% of the shares, which is the equivalent of 2,316,930 shares.
On 26 January 2015, the entire shareholding in AB Ernst Hj Rydahl Bromsbandfabrik, known as Rydahls, was acquired. The company has its head office in Karlstad and sales offices in five other locations in Sweden and is one of Scandinavia's leading suppliers of brake and friction components. The acquisition opens a whole new market segment for OEM. The company's sales in 2014 amounted to SEK 117 million. The company has 44 employees and became part of Region Sweden on 1 January 2015.
On 12 June 2015, the entire shareholding in Scannotec Oy in Finland was acquired. The company has its head office in the Finnish city of Espoo and is a supplier of technical products and systems for
guidance, information, surveillance and safety that are used in public transport and industrial facilities. The acquisition opens a whole new market segment for OEM. It reports annual sales of approximately EUR 1.5 million. The company has 6 employees and became part of Region Finland, the Baltic states and China on 1 June 2015.
On 27 August 2015, the entire shareholding in ATC Tape Converting AB was acquired. The company converts and markets industrial tapes, which complement the Group's existing product range. Its head office is located in Järfälla. It reports annual sales of approximately SEK 18 million and has 5 employees.
The company became part of Region Sweden on 1 September 2015.
The total consideration for the businesses acquired was SEK 37.1 million, plus contingent considerations estimated at SEK 12.5 million, based on how the businesses develop in the 2015 - 2017 period. Following the acquisitions, OEM's consolidated net sales have increased by SEK 93 million and operating profit by SEK 3.9 million in 2015.
| Fair | |||
|---|---|---|---|
| Companies | value | ||
| ' carrying | adjustme | Group | |
| The acquired companies' net assets at the time of acquisition | amounts | nt | fair value |
| Intangible fixed assets | - | 13.5 | 13.5 |
| Other fixed assets | 2.8 | - | 2.8 |
| Other non-current receivables | 0.1 | - | 0.1 |
| Inventories | 32.8 | - | 32.8 |
| Other current assets | 22.2 | - | 22.8 |
| Cash and cash equivalents | 5.4 | - | 5.4 |
| Deferred tax liabilities | -1.7 | -2.9 | -4.6 |
| Other liabilities | -33.4 | - | -33.4 |
| Net identifiable assets/liabilities | 29.9 | 8.9 | 38.8 |
| Consolidated goodwill | - | 10.8 | 10.8 |
| Consideration, including contingent consideration | 49.6 |
As a result of the acquisitions, other intangible assets have increased by SEK 13.5 million. The amount relates to customer relationships that will be amortised over a five-year period. Consolidated goodwill is not tax deductible.
OEM considers the acquisition analyses as preliminary while uncertainty exists about the outcome of warranties in the acquisition agreements relating to inventories and receivables.
OEM normally uses an acquisition structure with a base consideration and contingent consideration. Contingent consideration is initially measured at the present value of the probable earn-out amount, which is SEK 12.5 million for the acquisitions this year. The period for contingent consideration is three (3) years at most and the earn-out is capped at SEK 14.3 million. Both the base consideration and the contingent consideration are settled in cash.
Acquisition-related transaction expenses for the period amount to SEK 0.3 million.
Developments in previously implemented acquisitions have resulted in a remeasurement of continent consideration liability which decreased by SEK 1.0 million. This had a beneficial SEK 1.0 million effect on the operating profit in the January-September period. Continuing contingent consideration liabilities relating to acquisitions implemented in previous years amounted to SEK 11.1 million on 30 September 2015.
This condensed consolidated interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and in compliance with relevant provisions from the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in compliance with the Swedish Annual Accounts Act Chapter 9, Interim Report and the Securities Market Act. The Group and the Parent Company have applied the same accounting policies and basis of preparation as in the latest annual report. No International Financial Reporting Standards (IFRS) or International Financial Reporting Interpretations Committee (IFRIC) interpretations adopted in 2015 have had a significant effect on the reported results or financial position of the Group.
Disclosure of fair values for financial instruments that are not measured at fair value in the balance sheet is not required because the carrying amount is considered a reasonable approximation of fair value because the instruments are short-term in nature.
The OEM Group is exposed to both business-related risks and financial risks through its activities. Business-related risks include competition and operational risks, and financial risks include liquidity risk, interest rate risk and currency risk. The financial operations of the OEM Group and management of financial risks are mainly handled by the Parent Company. Frameworks for risk management procedures and risk mitigation are in place. These frameworks are characterised by a low risk level. The basis is the structured and efficient management of the financial risks that arise in the business. For a complete report on the risks affecting the Group, please refer to pages 30 to 31 and pages 75 to 77 of the 2014 Annual Report.
Other than the risks and uncertainties described in the Annual Report for 2014, no significant risks or uncertainties have been identified or removed.
At the beginning of April 2014, Lund District Court delivered judgement on a lawsuit in which the subsidiary Internordic Bearings AB (IBS) has been involved, regarding mutual creditor claims with a client and the client's insurance company for a breach of contract claim.
The judgement means that IBS has lost the case against the client. However, the client's insurance company has not been successful in its action against IBS, and the suit has been dismissed by the Court.
The judgement means that IBS must pay the client a net amount of SEK 4.9 million, including litigation costs, interest and net of the insurance payments that IBS receives via its own insurance company. The amount is included in the company's and the Group's income statement for the first quarter of 2014.
The client and its insurance company have appealed against the judgement to the Court of Appeal. IBS has also decided to appeal against the judgement. The Court has granted leave to appeal in all cases and negotiations will take place on 15 to 17 February 2016.
No related party transactions have been entered into that materially affected the financial position or the performance of the Group and Parent Company during the period, except for inter-company dividend payments and dividends to shareholders of the Parent Company.
Net sales were SEK 21 million (20) and profit after financial items was SEK 14 million (7). Net sales relate entirely to inter-company transactions. The foregoing risks and uncertainties specified for the Group also apply indirectly to the Parent Company.
There are no significant events to report after the close of the reporting period.
The Nomination Committee for the Annual General Meeting on 26 April 2016 is composed of: Lars-Åke Rydh (chair) Hans Franzén Jerker Löfgren, Orvaus AB Agne Svenberg Bengt Stillström, AB Traction The Nomination Committee can be contacted through Lars-Åke Rydh, tel. +46 (0)705-924570 or via e-mail [email protected]
The Financial Statement, Full Year 2015, will be published on 18 February 2016
Tranås, Sweden, 20 October 2015
Jörgen Zahlin Managing Director and Chief Executive Officer
For further information, please contact the Managing Director, Jörgen Zahlin, on +46 (0)75-242 40 22 or the Finance Director, Jan Cnattingius, on +46 (0)75-242 40 03.
The information in this report is of such a nature that its disclosure by OEM International AB (publ.) is required under the Swedish Securities Market Act. The information was released to the media for publication on 20 October 2015 at 2.00 pm.
OEM International AB (publ) CRN 556184-6691
We have carried out a review of the condensed financial statement for the interim period (interim report) for OEM International AB (publ) as at 30 September 2015 and the nine-month period closing that date. The Board of Directors and the Managing Director 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 International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical procedures to financial data and taking other review measures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing practices and consequently does 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, and, for the Parent Company, in accordance with the Swedish Annual Accounts Act.
Tranås, Sweden, 20 October 2015
KPMG AB
Kjell Bidenäs Chartered Accountant
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | ||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Sweden, external income | 1 050 | 866 | 329 | 359 | 362 | 326 | 275 | 1 377 | 1 193 |
| Sweden, income from other segments | 66 | 64 | 19 | 24 | 23 | 20 | 20 | 87 | 84 |
| Finland, the Baltic States and China, external income | 253 | 212 | 82 | 86 | 85 | 72 | 69 | 325 | 284 |
| Finland, the Baltic States and China, income from other segments3 | 2 | 1 | 1 | 1 | 1 | 1 | 4 3 |
||
| Denmark, Norway, the United Kingdom and | |||||||||
| Central Eastern Europe, external income | 347 | 302 | 118 | 112 | 116 | 109 | 104 | 455 | 411 |
| Denmark, Norway, the United Kingdom and | |||||||||
| Central Eastern Europe, income from other segments | 1 | 1 | 0 | 1 | 0 | 0 | 0 | 1 1 |
|
| Other operating segments/elimination | -70 | -66 | -20 | -26 | -24 | -21 | -21 | -91 | -88 |
| 1 650 | 1 380 | 530 | 557 | 563 | 507 | 448 | 2 158 | 1 887 |
| Jan- sept |
Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | |||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Sweden | 137 | 106 | 46 | 42 | 49 | 37 | 38 | 174 | 143 |
| Finland, the Baltic States och China | 18 | 15 | 7 | 5 | 6 | 3 | 5 | 21 | 18 |
| Denmark, Norway, the United Kingdom and | |||||||||
| Central Eastern Europe | 25 | 22 | 9 | 7 | 9 | 5 | 9 | 30 | 27 |
| Group functions | -12 | -10 | -3 | -4 | -6 | 1 | -3 | -12 | -10 |
| 167 | 133 | 59 | 50 | 58 | 46 | 49 | 213 | 179 |
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | ||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Operating profit | 167 | 133 | 59 | 50 | 58 | 46 | 49 | 213 | 179 |
| Net financial items | -3 | -2 | -1 | -2 | -1 | -1 | -1 | -4 | -3 |
| Pre-tax profit/(loss) | 164 | 130 | 58 | 49 | 57 | 46 | 48 | 209 | 176 |
CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME (SEK MILLION)
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | ||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Net sales | 1 650 | 1 380 | 530 | 557 | 563 | 507 | 448 | 2 158 | 1 887 |
| Other operating income | 1 | 1 | 1 | - | 0 | 0 | 1 1 |
1 | |
| Operating costs *** | -1 449 | -1 216 | -460 | -496 | -494 | -451 | -389 | -1 900 | -1 667 |
| Depreciation of fixed assets | -35 | -33 | -12 | -11 | -12 | -11 | -11 | -46 | -43 |
| Operating profit | 167 | 133 | 59 | 50 | 58 | 46 | 49 | 213 | 179 |
| Net financial income/expense | -3 | -2 | -1 | -2 | -1 | -1 | -1 | -4 | -3 |
| Pre-tax profit/(loss) | 164 | 130 | 58 | 49 | 57 | 46 | 48 | 209 | 176 |
| Tax | -36 | -29 | -12 | -11 | -13 | -10 | -10 | -45 | -39 |
| Profit/loss for the period | 128 | 101 | 46 | 38 | 44 | 36 | 38 | 164 | 137 |
| Other comprehensive income | |||||||||
| Profit/loss for the period | 128 | 101 | 46 | 38 | 44 | 36 | 38 | 164 | 137 |
| Items that have been transferred or may | |||||||||
| recycled to net income | |||||||||
| Exchange differences for the period on | |||||||||
| translation of overseas operations | 0 | 8 | 2 | -1 | -1 | 6 | 1 | 6 14 |
|
| Items that can not be recycled to | |||||||||
| net profit | |||||||||
| Revaluation of defined | |||||||||
| benefit pension plans | 0 | 1 | 0 | 0 | 0 | -1 | 0 | -1 | 0 |
| Other comprehensive income for the period | 0 | 9 | 2 | -1 | -1 | 5 | 1 | 5 14 |
|
| Comprehensive income for the period | 128 | 110 | 48 | 37 | 43 | 41 | 39 | 169 | 151 |
| Earnings per outstanding share, SEK* | 5,54 | 4,36 | 1,98 | 1,66 | 1,90 | 1,56 | 1,65 | 7,10 | 5,92 |
| Earnings per total shares, SEK* | 5,53 | 4,35 | 1,98 | 1,65 | 1,90 | 1,55 | 1,65 | 7,08 | 5,90 |
| EBITA** | 183 | 146 | 65 | 56 | 63 | 50 | 54 | 233 | 196 |
* Attributable to shareholders of the parent company. There are no dilution effects.
** Definition of EBITA; Operating profit before amortisation of acquisition-related intangible fixed assets.
*** Costs of SEK 4.9 million relating to a lawsuit judgement have been charged to operating expenses in the January to March 2014 period.
| 2015-09-30 | 2014-09-30 | 2014-12-31 | |
|---|---|---|---|
| Fixed assets | |||
| Goodwill | 98 | 85 | 88 |
| Other intangible assets | 82 | 93 | 87 |
| Total intangible assets | 181 | 178 | 175 |
| Property, plant and equipment | 205 | 201 | 204 |
| Total property, plant and equipment | 205 | 201 | 204 |
| Financial assets | 0 | 1 | 0 |
| Total financial assets | 0 | 1 | 0 |
| Total fixed assets | 387 | 379 | 380 |
| Deferred tax assets | 3 | 2 | 2 |
| Current assets | |||
| Inventories | 378 | 318 | 337 |
| Current receivables | 388 | 376 | 325 |
| Cash and cash equivalents | 70 | 59 | 80 |
| Total current assets | 836 | 753 | 742 |
| Total assets | 1 225 | 1 134 | 1 123 |
| Equity | 581 | 511 | 552 |
| Non-current interest-bearing liabilities | 34 | 25 | 32 |
| Provisions for pensions | 2 | 3 | 3 |
| Other provisions | - | - | |
| Non-current non-interest-bearing liabilities | 16 | 10 | 12 |
| Deferred tax liabilities | 71 | 69 | 70 |
| Total non-current liabilities | 123 | 106 | 117 |
| Current interest-bearing liabilities | 241 | 252 | 215 |
| Current non-interest-bearing liabilities | 279 | 265 | 239 |
| Total current liabilities | 520 | 517 | 455 |
| Total equity and liabilities | 1 225 | 1 134 | 1 123 |
| 2015-09-30 | 2014-09-30 | 2014-12-31 | |
|---|---|---|---|
| At beginning of year | 552 | 725 | 725 |
| Comprehensive income for the period | |||
| Profit/loss for the period | 128 | 101 | 137 |
| Other comprehensive income for the period | 0 | 9 | 14 |
| Comprehensive income for the period | 128 | 110 | 151 |
| Dividends paid | -98 | -92 | -92 |
| Redemption of shares | - | -231 | -231 |
| At the end of the period | 581 | 511 | 552 |
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | ||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Operating cash flows | |||||||||
| before movements in working capital | 157 | 123 | 58 | 42 | 57 | 59 | 45 | 216 | 182 |
| Movements in working capital | -37 | -36 | -31 | 12 | -17 | 5 | -35 | -31 | -31 |
| Operating cash flows | 121 | 87 | 27 | 54 | 40 | 64 | 10 | 185 | 151 |
| Cash flow from investing activities | |||||||||
| Acquisition of subsidiaries | |||||||||
| net effet on cash and cash equivalents | -34 | -32 | -13 | -5 | -16 | -4 | -5 | -39 | -36 |
| Acquisition of intangible fixed assets | -1 | -1 | 0 | -1 | 0 | 0 | 0 -1 |
-1 | |
| Acquisition of property, plant and equipment | -17 | -12 | -5 | -6 | -5 | -7 | -5 | -24 | -19 |
| Sales of property, plant and equipment | 3 | 13 | 1 | 1 | 1 | 1 | 12 | 5 14 |
|
| Investing cash flows | -49 | -33 | -17 | -11 | -20 | -10 | 1 -59 |
-43 | |
| Financing cash flows | |||||||||
| - Change in financial liabilities | 16 | 153 | 4 | 12 | 0 | -32 | -1 | -16 | 121 |
| - Dividends paid | -98 | -92 | - | -98 | - | - | - -98 |
-92 | |
| - Redemption of shares | - | -231 | - | - | - | - | - | - -231 | |
| Financing cash flow | -82 | -171 | 4 | -86 | 0 | -32 | -1 | -114 | -203 |
| Cash flow for the period | -10 | -116 | 14 | -43 | 19 | 21 | 10 | 12 | -94 |
| Cash and cash equivalents at the beginning of the period | 80 | 173 | 57 | 99 | 80 | 59 | 49 | 59 | 173 |
| Exchange rate difference | -1 | 2 | -2 | 1 | 0 | 0 | 1 -1 |
2 | |
| Cash and cash equivalents at the end of the | |||||||||
| period | 70 | 59 | 70 | 57 | 99 | 80 | 59 | 70 | 80 |
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | ||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Return on equity, % | 22,6 | 16,3 | 7,5 | 7,4 | 7,7 | 5,1 | 5,8 | 27,7 | 21,4 |
| Return on capital employed, % ** | 22,1 | 18,1 | 7,3 | 7,2 | 7,6 | 6,0 | 6,4 | 28,1 | 24,1 |
| Return on total capital % *** | 15,6 | 13,1 | 5,3 | 4,9 | 5,4 | 4,7 | 4,5 | 20,3 | 17,8 |
| Equity/assets ratio, % | 47,5 | 45,1 | 49,1 | ||||||
| Earnings per outstanding share, SEK | 5,54 | 4,36 | 1,98 | 1,66 | 1,90 | 1,56 | 1,65 | 7,10 | 5,92 |
| Earnings per total shares, SEK | 5,53 | 4,36 | 1,98 | 1,65 | 1,90 | 1,55 | 1,65 | 7,08 | 5,90 |
| Equity per total shares, SEK | 25,10 | 22,05 | 23,82 | ||||||
| Average number of outstanding shares (thousands) | 23 107 | 23 107 | 23 107 | 23 107 | 23 107 | 23 107 | 23 107 | 23 107 | 23 107 |
| Average total shares (thousands) | 23 169 | 23 169 | 23 169 | 23 169 | 23 169 | 23 169 | 23 169 | 23 169 | 23 169 |
| Operating margin, % | 10,1 | 9,6 | 11,2 | 9,0 | 10,2 | 9,1 | 10,9 | 9,6 | 9,5 |
| EBITA-margin, % * | 11,1 | 10,6 | 12,2 | 10,0 | 11,1 | 9,9 | 11,9 | 10,8 | 10,4 |
* Definition of EBITA margin; EBITA divided by net sales.
EBITA = Operating profit before amortisation of acquisition-related intangible fixed assets.
**EBITA plus finance income as a percentage of average capital employed.
***EBITA plus finance income as a percentage of average total capital.
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 Trailing | Full year | ||
| 2015 | 2014 | 2015 | 2015 | 2015 | 2014 | 2014 | 12 mth | 2014 | |
| Net sales | 21 | 20 | 7 | 7 | 7 | 19 | 7 39 |
39 | |
| Operating costs | -33 | -32 | -10 | -12 | -10 | -10 | -10 | -43 | -42 |
| Depreciation | -5 | -5 | -2 | -2 | -2 | -2 | -2 | -7 | -7 |
| Operating profit | -17 | -17 | -5 | -7 | -5 | 7 | -5 | -10 | -10 |
| Income from investments | |||||||||
| in Group companies | 31 | 24 | - | 31 | - | 20 | - 51 |
14 | |
| Net financial income/expense | 0 | 0 | 0 | 0 | 0 | -1 | 0 -1 |
-1 | |
| Profit/loss after | |||||||||
| financial items | 14 | 7 | -5 | 25 | -5 | 26 | -5 | 40 | 3 |
| Year-end appropriations | - | - | - | - | - | 129 | - | 129 | 129 |
| Pre-tax profit/(loss) | 14 | 7 | -5 | 25 | -5 | 126 | 15 | 140 | 132 |
| Tax | 4 | 3 | 1 | 1 | 1 | -30 | 1 -26 |
-27 | |
| Profit/loss for the period | 18 | 10 | -4 | 26 | -4 | 96 | 16 | 114 | 106 |
Comprehensive income for the period corresponds with the profit/loss for the period.
| Assets | 2015-09-30 | 2014-09-30 | 2014-12-31 |
|---|---|---|---|
| Intangible fixed assets | 18 | 21 | 20 |
| Property, plant and equipment | 18 | 19 | 19 |
| Financial assets | 392 | 374 | 371 |
| Total fixed assets | 428 | 415 | 410 |
| Current receivables | 167 | 163 | 257 |
| Cash on hand and demand deposits | 0 | 0 | 0 |
| Total current assets | 167 | 163 | 257 |
| Total assets | 595 | 578 | 667 |
| Equity and liabilities | |||
| Equity | 101 | 86 | 182 |
| Untaxed reserves | 191 | 177 | 191 |
| Deferred tax liabilities | 2 | 2 | 2 |
| Non-current non-interest-bearing liabilities | 6 | 10 | 10 |
| Total non-current liabilities | 6 | 10 | 10 |
| Current interest-bearing liabilities | 130 | 136 | 110 |
| Current non-interest-bearing liabilities | 164 | 168 | 171 |
| Total current liabilities | 294 | 304 | 282 |
| Total equity and liabilities | 595 | 578 | 667 |
| Pledged assets | 7,5 | 7,5 | 7,5 |
| Contingent liabilities | 213 | 216 | 221 |
For 40 years, OEM's idea has been to serve as a link that creates value between customers and manufacturers of industrial components and systems. Over the years, the company has grown from a small, familyowned business in Tranås in southern Sweden into an international technology trading group operating in 14 countries in northern Europe, Central Eastern Europe, the UK and China. OEM has partnerships with more than 300 leading and specialist manufacturers and is responsible for their sales in selected markets. Its range comprises more than 25,000 products in the areas of electrical components, flow components, motors and transmissions, ball bearings and seals, appliance components and lighting. The Group has a customer base of more than 20,000 businesses, primarily in the manufacturing sector. The company's high level of expertise enables it to help customers increase purchasing efficiency and choose the right components.
www.oem.se
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