THIRD QUARTER - STRONG RESULTS IN A CHALLENGING MARKET

Overall, activity was at a high level during the quarter and, despite calendar effects and hesitancy in certain customer segments, total sales increased by 11 percent, 3 percent of which was organic. Profit (EBITA) increased by 17 percent to SEK 790 million with a strengthened margin of 14.4 percent (13.6). Our strong cash flow allows for a high pace of acquisition and we acquired three new companies during the quarter and another one after the end of the period. It is with great pride that I can conclude that our business model and unique culture, based on entrepreneurship and decentralised responsibility, continues to generate profitable growth, even in a challenging market.

MARKET TREND

The business situation with clear differences between, but also within, our most important customer segments persisted. Demand for infrastructure products for national and regional grids was very strong during the quarter. We also saw continued positive demand for products and solutions from manufacturing companies in the defence industry and among marine customers. In total, the business situation was stable within the medical technology, electronics, engineering and process industries. The challenging business situation in building and installation remained unchanged, which also affected demand in special vehicles, where construction machinery in particular had a weak development. Order intake for new projects in the sawmill industry remained at low levels and, in the third quarter, we also saw a weakening of the aftermarket in this segment. From a geographical perspective, the business situation was, on the whole, stable in the Nordic region, with the exception of Finland, where it remained weak. In our principal markets outside the Nordic region the business situation was, on the whole, stable in DACH and weak in Benelux, while it was positive in the UK.

ACQUISITIONS 

During the quarter, we continued to acquire well-managed and sustainable companies with high profitability. Over the financial year to date, we have acquired eleven companies with combined annual sales of about SEK 1,450 million, of which eight was outside the Nordic region. The strength of the strategy of strengthening our niche positions with high-performing companies, given a cultural match but regardless of geography, is growing increasingly apparent and we are continuing to execute as planned. Our pipeline of attractive acquisition candidates is well-filled and, combined with our strong financial position, we expect to continue to make acquisitions at a high pace going forward.