Bulten sales grow 14.5% but metal prices squeeze margin

Strong sales and net bookings buoyed Bulten’s Q2 2018 financials, with a 14.5% increase on net sales to SEK 810 million.

The same period saw operating margin squeezed by higher global market prices for steel and other metals – as well as an uneven rate of production thanks to new models – but that was partially balanced by exchange rate fluctuations for the group.

Q2 order bookings amounted to SEK 855 million, up 11.7% on the same period last year. The quarter also saw Bulten earn the Jaguar Land Rover Global Supplier Excellence Award and the election of its new President and CEO.

Half year net sales were up 11.9% to SEK 1,663 million.

“Very strong growth during the second quarter with increased net sales and order bookings of 14.5% and 11.7% respectively,” commented President and CEO Tommy Andersson. “Growth is primarily being driven by ramp-up in previously communicated contracts, but also by good demand in Bulten’s customer segments.

“Operating earnings were in line with the corresponding quarter last year, though with a lower operating margin. The lower operating margin is attributable to higher global market prices for steel and other metals as well as an uneven rate of production due to ramp-up in new models during the quarter, and the fact that last year was positively affected by a recovered claim. The negative effects on the operating earnings has however partly been balanced out by positive exchange rate fluctuations.

“The financial position remains strong and our scope increased during the quarter, with a new long-term financing agreement to secure future growth. Bulten has long-standing contracts with customers and a strong position on the market, and we are well equipped to meet higher demand for our products and the increased rate of investment.

“During the quarter, Bulten won another prestigious automotive industry prize: the Jaguar Land Rover Global Supplier Excellence Award – Something we are very proud of.”

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