Bulten AB net sales for the third quarter 2017 reached SEK 630 million (approximately €65 million), an increase of 5% over the same period 2016. Net sales for the nine months to September 2017 reached SEK 2.116 billion (2016: SEK 2.002 billion), an increase of 5.7% on the same period last year.
For the nine months year to date, operating earnings (EBIT) were SEK 155 million (2016: SEK 148 million), corresponding to an operating margin of 7.3% (2016: 7.4%). Earnings after tax were SEK 112 million (2016: SEK 109 million). Order bookings amounted to SEK 2.176 billion, an increase of 10.3% on the same period last year.
CEO Tommy Andersson commented: “Bulten had a successful third quarter with the signing of two new significant contracts. One of the contracts is one of Bulten’s largest FSP contracts ever and the other is a breakthrough in an important strategic market –
both are expected to be of great importance to future growth. During the quarter we saw strong order bookings, up 14.7% and
a net sales up 5%, both on the same period last year.”
He added that growth and profitability were hampered by slightly lower volumes due to customers’ model changes and profitability had also been negatively impacted by higher global market prices for steel and other metals, as well as currency effects. Underlying profitability is good considering this was
the third quarter, which has fewer production days.”
To meet increased demand Bulten decided to invest approximately SEK 177 million in an additional plant in Poland for production and distribution of fasteners. It has also decided to invest around SEK 45 million in a new heat treatment line in Hallstahammar to “provide the company and the unit with increased capacity and flexibility”.
Speaking about the implications of development of electric cars, Tommy Andersson noted: “Fasteners must be adapted for the new materials and designs being developed for electric cars and we are at the leading edge when it comes to supplying vehicle manufacturers with the latest technology. Our reference contracts show that the value for fasteners in electric vehicles today is clearly higher than in vehicles based on conventional technology.”
Bulten also reported that it was preparing to change its CEO by 2019 as Tommy Andersson has informed the board of his intention to retire.
Will joined Fastener + Fixing Magazine in 2007 and over the last 10 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.