Bufab Group released its interim report for the first half of 2015 showing net sales were up by 12% to SEK 1.27 billion (approximately 134 million euros). Adjusted for currency effects net sales rose 4%.
Operating profit was SEK 107 million (2014 H1: SEK 93 million). Commenting on the result Jörgen Rosengren, president and CEO of Bufab, said: “Operating profit in the quarter did not quite reach the high-levels of the preceding year, largely as a result of unfavourable exchange rates for Bufab that negatively impacted the gross margin. However, it was gratifying that the action that we took in the form of price increases to customers, lower purchase prices, and cost savings, started to generate clear results.”
Bufab reported Q2 order intake was 15% higher than the same period in 2014 but was down quarter-on-quarter. Partially a normal seasonal effect Bufab said this was also indicative that underlying demand had not made any lasting improvements.
Swedish sales fell on the already noted switch of a major customer to in-house production and migration of business out of the country. Overall the Group showed organic growth primarily due to new business from existing customers.
Noting that the integration of Flos B.V was progressing according to plan and the acquisition made a solid contribution to earnings in the quarter, Jörgen Rosengren added: “The work on identifying additional suitable acquisition projects is continuing.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
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