Industry News

Bufab Group reported six months interim results, showing year to date sales rose by 11%, with organic growth at 6%. Second quarter order intake increased 13% and was higher than net sales.

Six months sales rose 11% to SEK 1,638 million with organic growth at 6%. Operating profit rose to SEK 167 million, compared with SEK 153 million same period 2016. Operating margin was 10.2 percent (2016H1: 10.3).

Quarter 2 sales increased by 8% to SEK 823 million, with organic growth at 3%. Order intake increased 13% and was higher than net sales. Operating profit for the quarter declined to SEK 77 million (82) and the operating margin to 9.4 percent (10.8). Bufab says second quarter performance was influenced by calendar effects and raw material prices. The deterioration in gross margin during the quarter was primarily due to rising purchase prices.

President and CEO Jörgen Rosengren said Bufab's International segment had achieved increased market share in most markets, with growth in the UK and continental Europe, but a softer performance in Norway, Finland and Asia. Bufab continued to increase market share in Sweden but Rosengren noted the deterioration in gross margin and said offsetting rising purchase prices was “our main challenge in the short term”. Bufab would continue to focus on raising prices to customers - although to date increases had not been sufficient to offset cost increases.

Following the successful acquisition of Thunderbolts in the UK, Rosengren said Bufab would continue to seek more value-generating acquisitions.

He concluded, “Because of the unusually strong order intake in the quarter, we remain optimistic ahead of 2017 as a whole”.

[SEK 100 ≈ EUR10.46 at interbank]