Bulten first half sales grow 6% 07 November 2017

Bulten AB has announced sales for the second quarter of 2017 at SEK 708 million, an increase of 3% on same quarter 2016. First half 2017 sales reached SEK 1.49 billion, a 6% year-on-year increase.

First half 2017 EBIT was SEK 120 million (2016: SEK 109 million), corresponding to an operating margin of 8% (2016: 7.8%). Earnings after tax were SEK 90 million (2016: SEK 79 million). Bulten said its order book had increased to SEK 1.49 billion, up 8.3% on the same period in 2016. The half year report noted that Ram-Bul LLC, Bulten’s joint venture in the United States, had signed a US$5.5 million deal with a US automotive customer. Bulten has also signed a new full service provision contract worth around €30 million with an existing automotive customer.

Commenting on the results, Tommy Andersson, Bulten president and CEO, said: “It is very pleasing that after the end of the quarter Bulten signed both a new extensive FSP contract and a strategically important contract in the US. During Q2, net sales increased by 3%. The growth during the quarter has been affected by fewer production days compared with the corresponding quarter last year and by somewhat lower volumes due to model changes. The development indicates strong underlying demand in the automotive industry combined with Bulten’s strong position in this market, which is confirmed by a strong order intake during the quarter. Earnings and profitability continued to have a positive development and the return on capital employed rose to 15%. Bulten’s financial position is strong and during the quarter all our financial targets were reached and we are therefore well equipped for a phase of growth and investments in production and logistics.”

“In May, we received further evidence of our customers’ appreciation when our joint venture, BBB Services Ltd, was awarded Ford Motor Company’s prestigious Special Recognition World Excellence Award.”

“The development of electric vehicles requires that fasteners be adapted for new material choices and design solutions and Bulten is at the forefront of providing vehicle manufacturers with the latest technology. During the quarter, deliveries to pre-series to the next generation of electrical vehicles have started.”

(SEK 100 approximately = GB£9.25 or €10.4 at interbank) 

 

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