Bulten AB has announced a record quarter to end 2020, with net sales of SEK 1.08 billion (€107.45 million), an increase of 37.6% on the same period last year. Order bookings amounted to SEK 1.188 billion, an increase of 41.1% on the same period in 2019.
Annual net sales amounted to SEK 3.195 billion, an increase of 3.3% on the same period in 2019. SEK 369 million is attributable to the acquisition of PSM International Holdings Ltd, which Bulten acquired all shares for in February 2020. Bulten also acquired a minority holding in TensionCam Systems AB at a purchase sum of SEK 6 million.
Anders Nyström, president and CEO at Bulten, comments: “The improvement we saw at the end of the third quarter has continued during the fourth quarter with a recovery in the market, phasing-in of new contracts according to plan, and good development in the acquired company, PSM. During the quarter, Bulten’s net sales increased by 37.6% and order bookings by as much as 41.1%.”
Anders continues: “Strong demand, higher capacity utilisation and a positive outcome from the streamlining initiatives begun in 2019, and accelerated during the pandemic, have led to positive effects on earnings. Operating earnings totalled SEK 92 million, equating to an operating margin of 8.5%. Adjusted for non-recurring items of SEK 7 million, operating earnings for Q4 totalled SEK 85 million, equating to an operating margin of 7.8%. Thanks to focused initiatives, we had a positive cash flow from operating activities of SEK 176 million, of which change in working capital totalled SEK 55 million. Even disregarding acquisition effects this is a record quarter in Bulten’s history, both as regards sales and profit – something we are very proud of.”
Whilst Bulten had experienced a record Q4, Anders still saw several challenges in the immediate future. “Covid-19 has continued to create uncertainty in the world. A lack of microprocessors has also caused disruptions to our customers’ production, which is expected to continue during the first half of 2021. We have maintained our flexibility and have good opportunities to adapt the operation to the situation. We are also continuing the infection control measures introduced at our plants to assure health and safety.”
He concludes: “Despite a very turbulent 2020, we have succeeded well in our efforts to complete our ‘Stronger 24’ strategy plan, which we introduced at the beginning of 2020. The executive management team has been expanded and is partly new, and this means among others a stronger focus on sales to new customers and on technology development. The relocation of our production units in Taiwan and the USA has gone according to plan, and we still see potential in synergies with our acquired company PSM, which has now been fully integrated in the Bulten organisation. Bulten continues to gain market share and we see good opportunities to strengthen our position further in 2021.”
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