THIRD QUARTER - STABLE AT A HIGH LEVEL 

We summarise a stable quarter with continued high demand. Overall sales increased by 7 percent, 2 percent of which was organic. Our focus on increased added value, a favourable product mix and good acquisition outcomes, gave EBITA growth of 7 percent with a strengthened EBITA margin of 13.6 percent (13.5). Cash flow strengthened over the quarter and we welcomed three new profitable companies, with strong niche positions, into the Group. Despite a challenging international situation, our entrepreneurial companies again showed their strength.

MARKET TREND

Overall, the business situation remained stable. The market remained strong for infrastructure products for national and regional power grids, as well as for products and solutions for the defence industry. Sales development in the electronics, engineering and building and installation segments was stable overall, and it was good in the process industry. Demand in the medical industry and special vehicles weakened slightly from high levels. In the forest industry, the willingness to invest in new projects remained at a low level, while aftermarket demand weakened. From a geographical perspective, the market situation was stable in Sweden while it weakened in Finland and Denmark but was strong in Norway. In our principal markets outside Nordic region, the business situation was weaker for our companies operating in the Benelux and DACH regions primarily due to strong comparison figures, while it remained strong in the UK. 

Cash flow from continuing operations strengthened, amounting to SEK 744 million (576) for the quarter, driven by continued earnings growth, good operating margins, as well as measures for the more efficient management of working capital. By means of a clear focus among our companies, inventory levels fell over the period and P/WC increased from already high levels to 68 percent.

ACQUISITIONS

Our strong balance sheet and generally positive view of the acquisitions market mean that we are continuing to fill and process our replete pipeline with attractive acquisition candidates in all business areas. Over the financial year to date, we have completed nine acquisitions representing combined annual sales SEK 800 million. Acquired in the third quarter were Control Cutter AS of Norway, which provides technical solutions for decommissioning of oil and gas wells, BV Technology A/S of Denmark, which offers customized production solutions for the automation industry and Kemic Vandrens A/S of Denmark, which is a leading supplier of water purification solutions and equipment. All three bring considerable added technical value and superior profitability in line with our strategy.