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November 5, 2014 | Interim Report
Haldex Interim report, January - September 2014
Higher growth rate and further improvement in operating margin

July - September

Net sales amounted to SEK 1,123 (994) m, equivalent to a growth of 13% compared with the same period of the previous year. After currency adjustments, net sales increased by 7%.

Operating income excluding one-off items amounted to SEK 113 (84) m, corresponding to an operating margin of 10.1 (8.4)%. Including one-off items, operating income was SEK 15 (89) m and operating margin was 1.3 (9.0)%.

Negotiations with the German trade unions were completed in Q3. The plans for all plants affected by the previously announced restructuring program have thus been finalized. Haldex’ estimate has now been revised with new total annual savings of SEK 85 m and total costs of SEK 250 m, with cash effects of SEK 100 m.

Net income was impacted by one-off items in the amount of SEK 98 (+5) m in Q3, related to the restructuring program.

Net income after tax totaled SEK -22 (46) m and earnings per share totaled SEK -0.53 (1.03). Earnings per share excluding costs for restructuring amounted to SEK 1.51 (1.03) per share.

Cash flow from operating activities totaled SEK 112 (94) m. There was a negative impact on cash flow in the amount of SEK 4 (2) m in Q3 due to one-off items.

Event after the reporting period

Haldex announced updated financial targets on October 2, 2014: organically grow faster than the market (weighted segment volume), sustainable operating margin of 10% or above, net debt/equity ratio less than 1, and 1/3 of the yearly, over a business cycle, net income in dividend.

Key figures for July - September
(same period previous year in brackets)

  • Net sales, SEK m   1,123 (994)
  • Operating income, excl. one-off items, SEK m   113 (84)
  • Operating income, SEK m   15 (89)
  • Operating margin, excl. one-off items, %   10.1 (8.4)
  • Operating margin, %   1.3 (9.0)
  • Return on capital employed, excl. one-off items,%1    19.6 (12.6)
  • Return on capital employed,%1   13.5 (6.4)
  • Net income, SEK m   -22 (46)
  • Earnings per share, SEK   -0.53 (1.03)
  • Cash flow, operating activities, SEK m   112 (94)

Key figures for January - September
(same period previous year in brackets)

  • Net sales, SEK m   3,288 (3,012)
  • Operating income, excl. one-off items, SEK m   307 (215)
  • Operating income, SEK m   201 (100)
  • Operating margin, excl. one-off items, %   9.3 (7.1)
  • Operating margin, %   6.1 (3.3)
  • Return on capital employed, excl. one-off items,%1    19.6 (12.6)
  • Return on capital employed,%1   13.5 (6.4)
  • Net income, SEK m   90 (26)
  • Earnings per share, SEK   1.94 (0.54)
  • Cash flow, operating activities, SEK m   231 (211)

1) Rolling twelve months

Comment from Bo Annvik, President and CEO:

”We have worked on streamlining and focusing our business over the past two years. The profitability improvements achieved during the first three quarters of this year are a result of this work. In addition, we have achieved growth after essentially unchanged net sales several years in a row. The market situation in North America remains positive, which has contributed to the strength of our sales in Q3. Market signals are weaker in Europe, but we are getting a boost there from the success of our disc brakes, which are continuing to take market shares.

Haldex aims to enter a phase of profitable growth, which may also include acquisitions. Haldex has met three of four financial targets during the past quarters. Our operating margin has exceeded its 7% target, the net debt/equity ratio has been below 1 percent and more than one-third of our 2013 profit has been distributed to shareholders. However, we failed to meet our 7% growth target, and it is also expressed in a way that is not linked to the cyclical industry we operate in. We have therefore raised the bar with new profitability targets and described the growth target in a more relevant manner. To grow faster than the market with higher profitability than before, is an aggressive target for a company that has had unchanged net sales for several years. I am confident that Haldex is ready to face up to the challenge of achieving profitable growth in a sustainable manner, which will continue to add long-term value for shareholders, customers and employees.

Full interim report

The full interim report is available at http://www.haldex.com/financialreports or at http://news.cision.com/haldex

Press and analyst meeting

Media and analysts are invited to a telephone conference at which the report will be presented with comments by Bo Annvik, President and CEO, and Andreas Ekberg, CFO. The presentation will also be webcasted live and you can participate with questions by telephone.

Date & Time: Wednesday November 5 at 11.00 CET

The press conference is broadcasted at: http://www.media-server.com/m/p/2kk933io  

To join the telephone conference:

Sweden: +46 8 505 564 74
UK: +44 203 364 5374
Denmark: +45 354 455 79
USA: +1 855 753 2230

The webcast will also be available afterwards and you can download the Interim report and the presentation from Haldex website: http://www.haldex.com/financialreports

For further information, please contact:

Catharina Paulcén, SVP Corporate Communications, catharina.paulcen@haldex.com, +46 418 476157

Andreas Ekberg, CFO, +46 418 476000

Bo Annvik, President & CEO, +46 418 476000

Haldex AB (publ) is required to publish the above information under the Swedish Financial Instruments Trading Act. The information was submitted for publication on November 5, 2014 at 7.20 am CET.

Haldex (www.haldex.com), headquartered in Landskrona, Sweden, is a provider of proprietary and innovative solutions to the global commercial vehicle industry, with focus on products in vehicles that enhance safety, environment and vehicle dynamics. Haldex is listed on the Nasdaq OMX Stockholm Stock Exchange and had net sales of approx 3.9 billion SEK in 2013. The number of employees amounts to about 2,200.