Bulten wins new Russian automotive contract
14 October 2016
Bulten AB, through its joint venture in Russia, has signed another contract to supply fasteners to a major Russian vehicle manufacturer.
The annual order value is approximately €700,000 and deliveries will continue over a number of years, starting during the second quarter 2017 and ramping
up to full volumes during 2018. Deliveries will continue over a number of years relating to the life span of the vehicle, which is normally between
5 to 10 years, with a gradual slowdown as the contract nears its end.
“With this contract, we have made a significant breakthrough in the Russian market and further strengthened our position as a manufacturer of high-quality
fasteners. We see good opportunities to continue to grow the business and increase our market share,” said Tommy Andersson, president and CEO of
Bulten.
Separately Bulten had reported its second quarter 2016 sales had slipped by 1.4% year-on-year to SEK 686 million. Operating earnings (EBIT), however,
improved to SEK 54 million from SEK 45 million for Q2 2015. Operating margin was 7.8%. Earnings after tax was SEK 39 million (2015 Q2: SEK 35 million).
Bulten said that its order books had decreased 2.4% compared with 2015 Q2.
Six month sales were SEK 1,402 million, down 0.5% on H1 2015. EBIT was SEK 109 million for the half year compared with SEK 82 million in H1 2015.
Tommy Andersson commented: "Sales development in our different markets has been somewhat uneven during the quarter. Deliveries to carmakers with European
exposure remained good and were above the level of market growth. Deliveries to China and to heavy vehicle manufacturers were at a lower rate.
In total therefore, net sales were marginally lower than the previous year."
Andersson expected 2016 to prove a year of growth in-line with European vehicle production expectations.
(100 SEK is approximately €10.56 at interbank rates).
