Bulten AB reported net sales for the first quarter 2018 at SEK 853 million (€81 million), an increase of 9.6% on the same period last year. President and CEO, Tommy Andersson, heralded the results as confirmation of a new growth phase for Bulten.
Tommy Andersson commented: “The outcome of the first quarter confirmed higher net sales and order bookings of 9.6% and 8.2% respectively. The growth is an effect of an increase in previously announced contracts and a major model shift at a customer, which is now in full production.”
Operating earnings (EBIT) totalled SEK 67 million, up SEK 4 million on last year, but reflecting an operation margin of 7.8%, slightly decreased from 8.1%. Andersson explained that profitability was affected negatively by higher global market prices for steel and other metals, as well as an uneven rate of production, but was partly balanced out by positive currency effects. He added: “Bulten’s financial position remains strong and we are well equipped to meet both the higher demand for our products and the increased rate of investment. The investments lay the foundation to ensure our future growth takes place with continued high-quality and good profitability.”
“We have long-standing contracts and a strong position in our niche, and Bulten’s long-term growth opportunities are looking good, with incoming volumes from previously announced contracts worth just over SEK 500 million annually when full production is reached in 2020. Furthermore, the development toward more hybrid and electric cars works in our favour, as more fasteners will be needed for each car due to new materials and powertrains. We also deem our prospects good to win new business.”
Bulten’s order bookings were reported to stand at SEK 779 million, an increase of 8.2% on the same period in 2017. The company also confirmed that its new surface treatment line at its German unit was now up and running, with gradually increasing volumes.
At Bulten’s AGM held on 26th April, Nicklas Paulson was elected as a new member of the board. He is president of Investment AB Öresund and member of the Bilia AB board with more than twenty years’ experience in investment banking and corporate finance. Ulf Liljedahl was elected as the chairman of the board.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.
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