Bulten Group has reported net sales amounted to SEK 1.33 billion (€1.3 billion) for the third quarter of 2024, a decrease of 3.3% on the same period the previous year. Adjusted operating earnings totalled SEK 91 million (€7.8 million), equating to an adjusted operating margin of 6.8%.
Christina Hallin, interim president and CEO, highlights: “The reported operating earnings for the third quarter are an improvement on the corresponding quarter of 2023 and on the previous quarter this year. This is a clear sign that our efforts over the past year to stabilise and streamline production, combined with a focus on reducing our costs, are paying off. The operating margin has improved during Q3, which is generally a weaker quarter as there are fewer days of production. The margin has been positively impacted by non recurring items, including insurance compensation relating to machinery in Poland. Our long-term ambition to have an operating margin of 8% remains, although this will be difficult to achieve for 2024 as a whole.”
She continues: “There has been a slight decline in demand for fasteners from vehicle manufacturers in all markets during the quarter. The falling demand is largely due to a decrease in vehicle sales, but also to the fact that some of our larger customers are shifting platforms, thus affecting their Q3 2024 net sales production volumes in the short term.”
“In addition, there are other disruptions in OEM supply chains, which impact on our sales volumes. Although the market is not growing at the same rate as before, we now have an operation that is more stable and flexible, which is able to handle large fluctuations. The fall in demand gives us the opportunity to review our customer base and focus on customers and segments where we see better margins. It also enables us to review our customer contracts and phase out any unprofitable ones, something we have been doing during the quarter. We have also begun to reduce working hours in a couple of factories and we are working on a number of minor structural issues, including a review of some of our joint ventures. We cannot rule out additional structural changes moving forward, if they are necessary to further improve profitability levels,” concludes Christina.
Having spent a decade in the fastener industry experiencing every facet – from steel mills, fastener manufacturers, wholesalers, distributors, as well as machinery builders and plating + coating companies, Claire has developed an in-depth knowledge of all things fasteners.
Alongside visiting numerous companies, exhibitions and conferences around the world, Claire has also interviewed high profile figures – focusing on key topics impacting the sector and making sure readers stay up to date with the latest developments within the industry.
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