Bulten AB has announced third quarter net sales of SEK 764 million (€77.1 million), a decrease of 10.5% on the same period last year. Order bookings amounted to SEK 830 million, a decrease of 37.2% on the same period last year.
Anders Nyström, president and CEO at Bulten, comments: “The shortage of semiconductors that has been impacting the global automotive industry since Q2 2021 was an even greater obstacle during Q3. A number of our customers’ production units have been closed or running at reduced capacity during certain periods. The negative impact of the semiconductor shortage on Bulten’s sales is estimated at 25% - 30% during the third quarter. Underlying demand in the consumer stage remains strong, but at present vehicle production cannot keep up with demand.”
Anders continues: “Reduced volumes and lower capacity utilisation in Q3 meant that we had to take necessary decelerating measures to reduce our stock, which has had a negative impact on earnings in the short term. The shortage of semiconductors, along with price rises for steel, are external macroeconomic and partly geopolitical factors that are expected to continue affecting Bulten’s sales and margins negatively for the rest of 2021. From a longer term perspective, Bulten’s growth and earning capacity is very good. The inflow of new contracts, from both new and existing customers in and outside of automotive, has never been as strong as it has to date in 2021.”
These new contracts include the signing of a strategically important agreement in China regarding the supply of fasteners to a leading provider of consumer electronics. The agreement has an estimated annual value of approximately SEK 50 million. Deliveries started in the middle of the quarter.
Bulten also strengthened an existing FSP (Full Service Provider) contract for the supply of fasteners, with a further order from a European automotive manufacturer. The order is worth approximately SEK 68 million per annum. Deliveries are estimated to start in Q4 2021, will reach full pace in 2022, and will run for three years.
Finally, Bulten was also awarded a new FSP contract by a European automotive manufacturer, which is also a new customer. The contract relates to supply of fasteners for an electric vehicle programme that is under development. The order value is approximately SEK 220 million a year at full production. Deliveries are estimated to start in the third quarter of 2022, reaching full pace by 2025.
“We can see the measures we have taken as part of our ‘Stronger 24’ strategy are producing results, both in the shape of new business and productivity, and we continue to roll the strategy out to build an even stronger Bulten,” concludes Anders.
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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