FIRST QUARTER - A GOOD START TO THE NEW YEAR

We started the financial year with a generally high level of activity and continued profitable growth. Total sales grew by 6 percent, with strong contributions from the Automation, Electrification and Safety business areas. Currency fluctuations had a marginal impact, and on an organic basis, turnover was in line with the corresponding quarter last year. EBITA grew by 11 percent, with a strengthened margin of 16.6 percent (15.8). P/WC rose to 81 percent (77) and we welcomed two high-performance companies with strong positions in attractive niches to the Group.

MARKET TREND

For the Group as a whole, market conditions for the quarter were strong, driven in particular by increased demand in areas including electrical infrastructure, electrification and defence. Order intake for infrastructure products for national and regional grids recovered following a weaker period, while sales faced very tough comparisons against the preceding year. Overall, the market situation in medical technology, electronics and the mechanical industry developed favourably over the quarter, while companies exposed to the process industry continued to be affected negatively by projects being postponed. Special vehicles continued to enjoy a favourable business climate, as did the niche segments of data centres, road safety and marine. The market situation in building and installation showed no clear signs of any general improvement.

From a geographical perspective, the business climate was generally stable in Finland and favourable in Denmark, while being weak in Norway and Sweden. For our companies on the continent, the business climate was generally very strong over the quarter, while it was somewhat weaker in the UK. 

Cash flow from operating activities strengthened from already high levels and amounted to SEK 605 million (477) for the quarter, driven by good earnings growth, a stronger operating margin and efficient working capital management. 

ACQUISITIONS

Our international expansion continues, and during the first quarter we acquired two companies in the Netherlands. Staka Holding, which designs, manufactures and sells customised outdoor enclosures, and Nijhuis Engineering, a supplier of patented system solutions for road and rail construction machinery. The acquisition climate remains favourable and, with a well-filled pipeline and a strong balance sheet, we expect to continue making acquisitions at a high pace going forward.