FinnvedenBulten Group sales declined significantly in Quarter 4 2012 mainly because of very low activity in the European automotive sector at the end of the quarter.

Net Group sales for the year were down 3.9% but Q4 sales declined by 15.7% year on year. EBIT for the quarter fell to SEK 10 million (SEK 43 miliion Q4 2011) and for the year halved to SEK 101 million. Johan Westman, president and CEO, however noted it was: “Gratifying that the delivery and order bookings for the beginning of the year have recovered compared to December’s low levels.”

The Bulten fasteners division was strongly affected by customers’ reduced volumes but also by production standstill at one customer for a large part of the quarter. Net sales in the last quarter 2012 fell by 15% compared with Q4 2011 to SEK 391.9 million. EBIT for the quarter was SEK 15.7 million (2011: SEK 29.8 million).

Bulten net sales for the full year were SEK 1,710.5 million down 3.3% on 2011. EBITDA reached SEK 121.2 million (SEK 155.2 million in 2011). The Group stated: “Extensive savings and efficiency measures to reduce costs and adapt the business to the existing market outlook are being implemented.” It added: “Bulten division’s core business is stable and the division is well positioned going forward thanks to new and existing contracts.” These include a new engine platform to which Bulten is a full service provider and which is expected to see good volume development in coming years.

Both Bulten and Finnveden Metal Structure divisions reached agreement during Q4 for new establishments in Russia and China, offering “significant growth potential.” Bulten agreed to form a company with the automotive components division of the GAZ Group, one of Russia’s largest vehicle manufacturers.

In its outlook for 2013, the Group cautioned that the IHS forecasts light vehicle production in western Europe will decline by 5.6% in 2013 and heavy products by 5.2%.