Growth and improved result in a challenging environment

Third quarter 2015

• Net sales rose by 8 percent to SEK 577 million (536). Adjusted for currency effects and acquisitions, net sales remained unchanged.
• Order intake exceeded net sales.
• Operating profit amounted to SEK 52 million (48) and the adjusted operating margin to 9.0 (8.9) percent.
• Earnings per share amounted to SEK 0.87 (0.81).

January - September 2015

• Net sales rose by 11 percent to SEK 1,847 million (1,667). Adjusted for currency effects and acquisitions, net sales increased 3 percent.
• Order intake was in line with net sales.
• Operating profit amounted to SEK 159 million (141).
• Adjusted operating profit amounted to SEK 159 million (159) and the adjusted operating margin to 8.6 (9.5) percent.
• Earnings per share amounted to SEK 2.78 (2.42).

CEO'S OVERVIEW

We estimate the underlying demand in the third quarter to be weaker than in the previous quarter and in the third quarter of 2014. The change is tangible among many customers and in many of our markets, particularly in Norway and Sweden.

Despite this, we succeeded, primarily through increased market shares in segment International, in retaining unchanged organic sales for the Group. Flos B.V. of the Netherlands, which was acquired at the start of the year, developed well and contributed good sales and profitability during the quarter. 

In segment Sweden, net sales declined. This was largely attributable to the customer of one of manufacturing units that took over its own production from the fourth quarter 2014, as we announced earlier. The other business in Sweden had unchanged market shares and stable sales. We are working intensively in sales to other customers in Sweden, with the aim of further improving our already strong market position for the long term.

In segment International, we had continued good growth during the quarter, although at a lower rate than earlier in the year. This growth is being driven, apart from acquisitions, by increased market shares among many customers in many markets.

It is worth noting the favourable margin trend we have seen during the quarter, compared with earlier in the year. The measures in the form of price increases, purchasing and cost savings announced earlier as a result of the weakened rate of the Swedish krona, developed according to plan and have generated good results.

As a result of these measures and our acquisitions during the year, it was possible to improve the results for the quarter and retain the margin compared with the preceding year. During the quarter, order intake exceeded net sales, which is the normal pattern for the third quarter. However, we continue to take a cautious view of underlying demand, which is currently difficult to assess. On the other hand, we retain strong confidence in our work on market shares and enhanced efficiency.

Jörgen Rosengren, President and CEO

ABOUT BUFAB
Bufab AB (publ), Corporate Registration Number 556685-6240, is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control and logistics for C-Parts (screws, nuts, etc.). Bufab's Global Parts Productivity^TM customer offering aims to improve productivity in customers' value chain for C-Parts.

Bufab was founded in 1977 in Småland and is an international company with operations in 23 countries. The head office is located in Värnamo, Sweden and Bufab has about 830 employees. Bufab's sales for 2014 amounted to SEK 2.2 billion and adjusted operating margin was 9 percent. The Bufab share is listed on Nasdaq Stockholm, under the ticker "BUFAB."

CONFERENCE CALL
A conference call will be held on 23 October 2015 at 10.00 CET. Jörgen Rosengren, President & CEO and Thomas Ekström, CFO will present the result. The call will be held in English.

In order to participate, please use one of the following numbers; +44 (0) 1452 555566, UK 08444933800, Luxembourg 20880695, Sweden 0850336434 or US 16315107498. Conference code: 60762371.

Please dial in 5-10 minutes ahead in order to register.