Beijer Electronics: Interim report January - June 2016: Operating profit goes positive, IDC recovers

Regulatory News:

SECOND QUARTER

• Order intake of 280.2 MSEK (337.0*).
• Net sales were 283.3 MSEK (367.5*).
• Operating profit 4.2 MSEK (24.2).
• Profit/loss after tax was -2.8 MSEK (12.9).
• Earnings per share were -0.14 SEK (0.67). 
  

FIRST HALF-YEAR

• Order intake of 545.1 MSEK (680.4*).
• Net sales were 563.8 MSEK (719.3*).
• Operating profit -51.3 MSEK (50.9). Profit was charged with non-recurring expenses of 50 MSEK (0).
• Profit/loss after tax was -44.7 MSEK (28.0).
• Earnings per share were -2.33 SEK (1.48). 
  

*Includes distributor volumes that have been discontinued.

COMMENTS FROM PRESIDENT AND CEO PER SAMUELSSON

"Beijer Electronics recovered in the second quarter and we are heading in the right direction. After the two quarters of operating losses, in the second quarter, operating profit moved into the black. The recovery has been gradual. After a poor start, the period finished really well.

The IDC business area’s order intake recovered well after a weak first quarter. In the second quarter, order intake was up by 23% on the first quarter, and by 11% on the corresponding period of 2015. But sales were down on the second quarter 2015, which did include several major project shipments. Westermo, and Korenix especially, reported increased sales quarter on quarter.

Meanwhile, IDC’s profitability level is too low due to major initiatives, mainly in Westermo. We are now putting more emphasis on growth with higher profitability. Accordingly, Westermo has adapted its planned cost increases to sales. We expect to be able to manage rising volumes with our existing organization.

Within the IAS business area, our programs of measures had the main positive effect, with significantly lower overheads resulting. Gross margin also improved. Sales remained at a low level, but excluding Mitsubishi Electric products, sales stabilized, and were unchanged in the first half-year compared to the second half-year 2015.

IAS is launching a new product range in the fall, the X2 series. Over a 12-month period, IAS will progressively introduce hardware and software for this new series, for all the business area’s different panels. This is expected to have a positive impact on sales late in the year. Overall, we expect sales to recover again in the second half-year.

IAS’s new organizational structure was implemented in the quarter, which in practice will mean a more customeroriented approach, with more staff such as management and development personnel being involved in the sales process, as well as sales and account managers. We also altered our marketing by launching a joint brand, X2, which links to our full range of panels and iX software to create a superior customer offering. Additionally, our programs of measures are progressing as planned.

We expect the group’s operating profit to be somewhat better in the second half-year 2016 than the corresponding period of 2015. But this will not fully offset the poor number in the first half-year. Accordingly, we anticipate the group’s operating profit for the full year 2016 being below our previous estimate of somewhat better operating profit excluding non-recurring expenses.”

INVITATION TO CONFERENCE CALL

Today, a conference call will be held for press and analysts, where President and CEO Per Samuelsson and CFO Joakim Laurén present the company and comment on the report.

Time: Thursday July 14, at 2.00 p.m. CET

To participate in the conference please dial:

From Sweden: +46856642694

From UK: +44 2030089804

To access the presentation please use this link: http://www.anywhereconference.com?UserAudioMode=DATA&Name=&Conference=131674057&PIN=86722012

The report and the presentation will be available at Beijer Electronics’ website www.beijerelectronics.com/ir. A recording of the conference call will also be available here after the event.

Welcome!

Beijer Electronics is a fast growing technology company with extensive experience of industrial automation and data communication. The company develops and markets competitive products and solutions that focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group with sales of 1,375 MSEK 2015. The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.com

This information is such that Beijer Electronics AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publication by Annika Johnsson at 13:00 CET, July 14, 2016.

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