"Bulten is reporting strong results with an operating margin of 6.5% despite a fall in volumes. The rate of sales was slightly weak, mainly at the start of the quarter, but recovered during September. The results were due to completed optimisation and good flexibility in the business."

Bulten (STO:BULTEN)

Strong earnings and good cash flow.

THIRD QUARTER

· Net sales reached SEK 601 million (618), down -2.7 % on the same period last year.

· Operating earnings (EBIT) were SEK 39 million (36), which corresponds to an operating margin of 6.5% (5.8).

· Earnings after tax were SEK 30 million (22).

· Order bookings amounted to SEK 602 million (652), a decrease of -7.7% on the same period last year.

· Cash flow from operating activities was SEK 55 million (-12).

· Earnings per share were SEK 1.50 (1.14).

· Bulten has taken a decision to invest around EUR 2.8 million in a new surface treatment line at its production unit in Germany.

JANUARY - SEPTEMBER

· Net sales reached SEK 2,002 million (2,027), down 1.2% on the same period last year.

· Operating earnings (EBIT) were SEK 148 million (118), which corresponds to an operating margin of 7.4% (5.8).

· Earnings after tax were SEK 109 million (87).

· Order bookings amounted to SEK 1,973 million (2,000), a decrease of 1.4% on the same period last year.

· Cash flow from operating activities was SEK 228 million (51).

· Earnings per share were SEK 5.45 (4.29).

· Net debt was SEK 63 million (73) and the equity/assets ratio at the end of the period was 68.1% (67.5).

CEO’S COMMENTS

“Bulten is reporting strong results with an operating margin of 6.5% despite a fall in volumes. The rate of sales was slightly weak, mainly at the start of the quarter, but recovered during September. The results were due to completed optimisation and good flexibility in the business.

Volume development and order bookings deteriorated slightly due to model shifts by our customers, lower export volumes to China and to heavy vehicle production, and to some effects of Brexit. We still expect 2016 to be a year of growth in line with expectations for European vehicle production with the exception of export volumes, which are expected to be weaker than last year. Bulten’s prospects for gaining further market share are very good from the second half of 2017, based on signed contracts and also on ongoing discussions with customers. During the quarter there was a breakthrough for our business in Russia when we signed an agreement with a significant vehicle manufacturer.

We have taken further steps to becoming the industry’s most cost-efficient producer of fasteners while safeguarding profitable growth through investment in a new surface-treatment facility at our plant in Germany. This investment will provide added value and improved competitiveness through greater flexibility and control over our process.

I am also very proud that Bulten continues to win awards for quality. During the quarter we were awarded Jaguar Land Rover’s JLRQ prize for quality and we thus join a selected group of suppliers that have qualified for this prestigious award.”

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