G & L Beijer AB Six-Month Report

Transcription

1 G & L Beijer AB Six-Month Report january June 2008 Continued strong second quarter. Net sales increased by eight per cent to SEK 1,679.8M (1,561.8). Operating profit rose to SEK 200.5M (152.1), including capital gains of SEK Profit after tax increased to SEK 159.2M (101.4). Profit per share amounted to SEK (8.17). Profit per share, excluding capital gains, amounted to SEK Establishment in two new markets through acquisitions within Beijer Ref. Increased investment in comfort cooling within Beijer Ref through an acquisition in Norway. Beijer Tech made two strategic acquisitions within its hose and rubber operations.

2 Sales, 6 months 1600 Profit before tax, 6 months 160 Profit before tax, quarterly 100 Profit before tax, rolling Q1 Q2 Q3 Q Q3 Q4 Q1 Q2 Profit per quarter, left scale Rolling profit, four quarters, right scale The diagrams are adjusted for items affecting comparability and one-off items, which existed in 2004, 2005, 2007 and Sales, Operating profit, Profit after tax, Profit per share after tax, sek

3 Sales The G & L Beijer Group reported a continued positive sales development for the second quarter of As in the second quarter of 2007, demand during 2008 was at an historically high level. Consolidated sales for the first six months of the year increased by eight per cent to SEK 1,679.8M (1,561.8). During the second quarter, sales rose by five per cent to SEK 923.0M (876.2). Acquisitions and some organic growth explain the rise in sales. The Beijer Ref Business Area s sales for the first two quarters increased by eight per cent to SEK 1,343.7M (1,247.0). Sales for the second quarter rose by four per cent to SEK 744.9M (716.2). The increase is explained by acquisitions and slight organic growth. The Nordic markets and Switzerland continued to develop strongly. Sales in other markets remain at an historically high level. The Beijer Tech Business Area s sales for the sixmonth period increased by seven per cent to SEK 336.1M (314.8). Sales for the second quarter rose by 11 per cent to SEK 178.1M (160.0). The net of the business area s acquisitions and divestments affected sales only marginally. Demand within most product areas, such as fluid technology, industrial rubber, steel mills & smelters and foundries, remained high and there were tendencies towards a lack of delivery capacity from some subcontractors. Operating profit The Group s operating profit for the first six months rose to SEK 200.5M (152.1). The result for 2008 includes capital gains of SEK 53.2M from divestments* made during the first quarter. Excluding the one-off gains, the operating profit amounted to SEK 147.3M. Operating profit for the second quarter amounted to SEK 92.3M (99.9). Beijer Ref s operating profit increased to SEK 149.3M (133.3) for the six-month period. Excluding the capital gain from Svenska Daikin, the result amounted to SEK 126.6M. Operating profit for the second quarter amounted to SEK 81.6M (90.4). The decrease is partly due to increased expenses attributable to carried out acquisitions. Operating profit for Beijer Tech rose to SEK 60.9M (28.1) for the first six months. Excluding the capital gain from the divestment of Brogårdsand AB, the result amounted to SEK 30.4M. Operating profit for the second quarter increased by 10 per cent to SEK 16.3M (14.8). The increase is explained by rising sales volumes and continued efficient cost control. *) see Significant events Profit Before And After Tax The Group s financial income/expense amounted to SEK -7.4M (-8.0) for the six-month period and to SEK -5.4M (-4.3) for the second quarter. Financial income/ expense includes a share in the profits of associated companies of SEK 4.0M (3.2) and 2.0M (1.8) for the respective period. Profit before taxes amounted to SEK 193.1M (144.1) for the first six months. Excluding oneoff gains*, the profit was SEK 139.9M. Profit before taxes for the second quarter amounted to SEK 86.9M (95.6). Profit after tax amounted to SEK 159.2M (101.4) for the half year and to SEK 65.2M (66.6) for the second quarter. Profit per share amounted to SEK (8.17) for the half year. Excluding the capital gains, profit per share amounted to SEK Other Financial Information Consolidated capital expenditure, including acquisitions, amounted to SEK 52,4M (16.6). Liquid funds, including bank overdraft facilities, were SEK 121.9M (172.2) at the end of the half year. On the same date, shareholders equity amounted to SEK 808.4M (610.1). Net indebtedness fell to SEK 688.0M (706.9). The equity ratio was 36 per cent (30). The average number of employees during the period was 998 (909). Significant Events In January, G & L Beijer divested its agency operation within the air-conditioning segment, Svenska Daikin, through its Beijer Ref business area. Svenska Daikin reports annual sales of approximately SEK 65M and has 10 employees. Through the divestment, Beijer Ref realised a gain of SEK 26M which is included in the result for the first quarter of The buyer was the European subsidiary of the Japanese company, Daikin. Svenska Daikin is not included in the consolidated accounts from 1 February In February, G & L Beijer acquired the operation in Renheat AB through its Beijer Tech business area. The operation reports annual sales of approximately SEK 5M. The acquisition is included in G & L Beijer s accounts from the beginning of February In February, G & L Beijer divested Brogårdsand AB with its subsidiary, Fyleverken, to Finja AB through its Beijer Tech business area. The sold operation reports annual sales of approximately SEK 60M. The capital gain amounted to approximately SEK 30M. In connection with the transaction, G & L Beijer and Finja signed a long-term agreement which means that Beijer Tech will be the distributor of and sell Brogårdsand s products to the foundry industry in the Nordic countries. Brogårdsand/Fyleverken is not included in G & L Beijer s accounts from 1 March

4 In April, G & L Beijer acquired the operation in Hymab (Hydraul & Maskinkomponenter i Örebro AB) through its Beijer Tech business area. The highly profitable operation reports sales of approximately SEK 16M and has six employees. Hymab markets and sells hydraulic components, hydraulic hose, environmentally-friendly oil products, ball bearings, sealing devices and fasteners. The acquisition was a step in the strategy for Beijer Tech s subsidiary, Lundgrens, to invest in the hydraulics segment. The operation in Hymab is included in G & L Beijer s accounts from 1 May In April, G & L Beijer acquired the distribution rights for Mitsubishi Heavy Industries products within the air-conditioning and heat-pump segments in Norway through its Beijer Ref business area. The acquisition, which was an assets and liabilities transaction, also included the order book and inventories as well as one sales manager. The operation reports annual sales of approximately SEK 20M. The acquisition in Norway is a step in Beijer Ref s strategic investment in comfort cooling. The acquisition in Norway is being integrated into Beijer Ref s Norwegian operation and is included in the consolidated accounts from 1 May In May, G & L Beijer acquired the Slovakian refrigeration wholesale company, RK Slovakia, through its Beijer Ref business area. The company reports sales of approximately SEK 10M and has nine employees. The acquisition was strategically important and meant that Beijer Ref made a breakthrough into a new market in Europe. The acquisition is deemed to have a significant growth potential as Beijer Ref will be able to contribute organisation, resources and the business area s complete product range. RK Slovakia is included in G & L Beijer s accounts from 1 May In May, G & L Beijer acquired the Industrial Hose product area within REC Indovent AB through its Beijer Tech business area. The operation reports sales in excess of SEK 20M and has five employees. The acquired operation markets and sells industrial hose for a number of applications, such as the handling of hot and aggressive gases and industrial vacuum cleaning. The acquired business is being integrated into the operations of Beijer Tech s subsidiary, Lundgrens. As a result, Lundgrens develops its product programme and strengthens its position as a leading hose company in Sweden. The acquisition is included in G & L Beijer s accounts from 1 June In June, G & L Beijer acquired the Czech refrigeration company, Fridanair, through its Beijer Ref business area. The company reports sales of approximately SEK 30M and has 20 employees. The acquisition meant that Beijer Ref made a breakthrough into yet another market in Europe. The acquisition is deemed to have a significant growth potential as Beijer Ref will be able to contribute organisation, resources and the business area s complete product range. Fridanair is included in G & L Beijer s accounts from 1 July Risk Assessment The operations of the G & L Beijer Group are affected by a number of external factors, the effects of which on the Group s operating profit can be controlled to a varying degree. The Group s business areas are dependent on the general economic trend, especially in Europe, which controls the demand for the business areas products and services. Other operating risks such as agency and supplier agreements, product responsibility and delivery undertaking, technical development, warranties, dependence on individuals, etc, are continually being analysed and, when necessary, action is taken to reduce the Group s risk exposure. In its operations, G & L Beijer AB is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company s risk picture is the same as that of the Group. Financial Information - The Nine-Month Report will be published on 22 October The Year-End Report for 2008 will be published in February The Annual Report for 2008 will be published in April This Interim Report has been prepared in accordance with IAS 34 and RR 31. The reporting principles applied correspond with the reporting principles applied in the preparation of the latest Annual Report. This Interim Report has not been the subject of special examination by the company s auditors. The Board of Directors and the Managing Director assure that this Six-Month Report gives a true and fair view or the company s and the Group s operations, position and results and describes significant risks and factors of uncertainty which the company and the companies included in the Group are facing. Malmö, Sweden, 17 July 2008 Peter Jessen Jürgensen Poul Friis Bernt Ingman Anne-Marie Pålsson Joen Magnusson Chairman Board Member Board Member Board Member Board Member Managing Director 4

5 S u m m a r i s e d p r o f i t a n d l o s s a c c o u n t () 6 months 6 months q2 q2 Full year Net sales Other operating income * Operating expenses Depreciation Operating profit Net interest expense Other financial results Profit before taxes Taxes Net profit *) Of which one-off items Net profit attributable to the parent company s shareholders Net profit attributable to minority interest Net profit per share before and after dilution, sek S u m m a r i s e d b a l a n c e s h e e t () Assets Fixed assets Current assets Liquid funds Total assets Equity and liabilities Shareholders equity Long-term liabilities Current liabilities Total equity and liabilities Of which interest-bearing liabilities K e y f i g u r e s Equity ratio, % Equity per share, sek Return on equity after full tax, % Return on capital employed, % Return on capital employed in operations, % Number of shares*: Holding of own shares*: *) Share split carried out on 31 May All comparative figures are recalculated taking into account the carried out split. 5

6 R e p o r t i n g f o r s e g m e n t s () Beijer Ref Beijer Tech Group Revenues External sales Total revenues Results Result by operation Undistributed costs Operating profit * *) Including capital gains S u m m a r i s e d c o n s o l i d a t e d c a s h f l o w a n a l y s i s () 6 months 6 months 12 months Cash flow from current operations Changes in working capital Cash flow from investment operations Change in financing Dividend paid Change in cash and bank Exchange rate difference in liquid funds Cash and bank on 1 January Cash and bank at the period end S h a r e h o l d e r s e q u i t y () Opening balance Net profit for the period Dividend Sale of subsidiaries 0.7 Translation difference Closing balance

7 Parent company profit and loss account in summary () 6 months 6 months Full year Operating income... Operating expenses Depreciation and write-downs of tangible and intangible fixed assets Operating profit Net interest income/expense Result of participations in Group companies and associated companies Profit after financial investments Appropriations Profit before tax Tax on the period s profit Net profit Parent company balance sheet in summary () Assets Tangible fixed assets Financial fixed assets Current assets Total assets Equity and liabilities Shareholder s equity Untaxed reserves Long-term liabilities Current liabilities Total equity and liabilities

8 G & L Beijer AB (publ), Norra Vallgatan 70, SE Malmö, Sweden Phone , Fax Corporate identity number Current information: