Bulten's Q2 report

Higher sales and closure in Russia create stability in a volatile business climate

Second quarter

• Net sales amounted to SEK 1,006 (910) million, an increase of 10.5% on the same period last year. 
• Operating earnings (EBIT) totaled SEK 41 (55) million, equating to an operating margin of 4.1% (6.0).
• Adjusted operating earnings totaled SEK 51 (55) million, equating to an adjusted operating margin of 5.0% (6.0). Divestment cost, mainly currency translation effect, related to the Russian operation, burdened the result with approximately SEK -10 million.
• Earnings after tax amounted to SEK 22 (38) million. Adjusted earnings after tax amounted to SEK 32 (38). 
• Order bookings amounted to SEK 1,289 (947) million, an increase of 36.2% on the same period last year.
• Cash flow from operating activities totaled SEK -19 (32) million.
• Earnings per share were SEK 0.88 (1.80). Adjusted earnings per share were SEK 1.32 (1.80).
• During the quarter, the divestment of Bulten’s Russian operation was finalized. The operation was bought by the Russian company CAR SEATS LLC, and all shares in the joint venture company previously owned by Bulten and GAZ were redeemed. A provision had already been accounted for the impact on operating profit during Q1. During the second quarter, a currency translation effect was accounted for in conjunction with the final settlement.      

January - June

• Net sales amounted to SEK 2,040 (2,013) million, an increase of 1.3% on the same period last year. 
• Operating earnings (EBIT) totaled SEK 30 (153) million, equating to an operating margin of 1.5% (7.6).
• Adjusted operating earnings totaled SEK 123 (153) million, equating to an adjusted operating margin of 6.0% (7.6). In light of Russia’s invasion of Ukraine and the related sanctions, at the beginning of March Bulten decided to discontinue its operation in Russia. Divestment costs related to the Russian operation burdened the result by SEK -93 million. Apart from the transaction costs, the divestment has no effect on the cash flow.
• Earnings after tax amounted to SEK -17 (106) million. Adjusted earnings after tax amounted to SEK 76 (106). 
• Cash flow from operating activities totaled SEK 75 (125) million.
• Earnings per share were SEK -1.02 (5.01). Adjusted earnings per share were SEK 3.38 (5.01).
• Net debt amounted to SEK 777 (438) million. Net debt (excluding lease liabilities) totaled SEK 446 (94) million.
• The equity/assets ratio was 47.3% (51.6) at the end of the period. The equity/assets ratio (excluding lease liabilities) totaled 51.9% (57.6).

“The second quarter was characterized by a volatile business climate, where costs increased in tandem with fluctuations in our production. Underlying demand in the automotive industry remained strong, but unfortunately our customers’ production volumes were negatively impacted early in the quarter by widespread component shortages. On a positive note, however, at the end of the quarter the production disruptions decreased significantly, and we also finalized the closure of our operation in Russia,” says Anders Nyström, President and CEO.

A presentation for analysts, media and investors will be held on July 13 at 11:00 CEST during a webcasted teleconference. The report will be presented by President and CEO Anders Nyström and CFO Anna Åkerblad. The presentation will be held in English and include a Q&A session.

To participate in the teleconference, please dial in 5 minutes before the opening:
SE: +46850558350
UK: +443333009031
US: +16467224903

The presentation and teleconference can be accessed via the link: https://tv.streamfabriken.com/bulten-q2-2022.

Copies of the presentation will be available at www.bulten.com/ir 30 minutes before start.

For further information, please contact: Ulrika Hultgren, SVP Corporate Communications & IR, +46 727-47 17 58, [email protected] 

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on 13 July 2022.

Bulten Group is a leading global manufacturer and supplier of fasteners to the automotive industry, as well as other customer groups such as consumer electronics. The offering extends from a wide range of standard products to specially adapted fasteners. With Bulten’s Full Service Provider concept (FSP), customers can entrust all their fastener needs to the company, including development, sourcing, logistics and service. The company was founded in 1873, has approximately 1,600 employees in 15 countries and is headquartered in Gothenburg, Sweden. Net sales in 2021 totaled SEK 3,730 million. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com.