April - June

Net sales amounted to SEK 1,124 (1,067) m, equivalent to a growth of 5% compared with the same period of the previous year. After currency adjustments, net sales increased by 4%.

Operating income excluding one-off items amounted to SEK 110 (76) m, corresponding to an operating margin of 9.7 (7.1)%. Including one-off items, operating income was SEK 103 (-44) m and the operating margin was 9.2 (-4.1)%.

Net income after tax increased to SEK 64 (-48) m and earnings per share increased to SEK 1.44 (-1.09). Net income was impacted by one-off items in the amount of SEK 7 (120) m in Q2.

Cash flow from operating activities increased to SEK 116 (88) m. There was a negative impact on cash flow in the amount of SEK 7 (23) m in the quarter due to the ongoing restructuring programs.

In Q2, Haldex entered the final phase of negotiations with the German trade unions concerning Haldex’ operations in Heidelberg. However, the negotiations have not been finalized as of the publication of this report. Haldex estimates that the forecasted total savings for the ongoing restructuring program will be adjusted down slightly, which will be announced when the parties have reached a final agreement.

Key figures for April - June
(same period previous year in brackets)

Net sales, SEK m 1,124 (1,067)
Operating income, excl. one-off items, SEK m 110 (76)
Operating income, SEK m 103 (-44)
Operating margin, excl. one-off items, % 9.7 (7.1)
Operating margin, % 9.2 (-4.1)
Return on capital employed, excl. one-off items,%1 18.1 (10.4)
Return on capital employed,%1 17.3 (3.4)
Net income, SEK m 64 (-48)
Earnings per share, SEK 1.44 (-1.09)
Cash flow, operating activities, SEK m 116 (88)

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

Net sales, SEK m 2,165 (2,018)
Operating income, excl. one-off items, SEK m 194 (131)
Operating income, SEK m 186 (11)
Operating margin, excl. one-off items, % 8.9 (6.5)
Operating margin, % 8.6 (0.5)
Return on capital employed, excl. one-off items,%1 18.1 (10.4)
Return on capital employed,%1 17.3 (3.4)
Net income, SEK m 112 (-20)
Earnings per share, SEK 2.47 (-0.49)
Cash flow, operating activities, SEK m 119 (117)

1) Rolling twelve months

Comment from Bo Annvik, President and CEO:

”The development in the first half of the year has been strong for Haldex. The operating margin continued to improve compared to both Q1 this year and the first half of the previous year. With an operating margin close to 9%, we exceeded our long-term target of 7% and we will therefore update our financial targets in the beginning of October in conjunction with our capital market day.

Net sales increased by 7%, which is in part due to the successes we have had with our investment in disc brakes. In total, we have won contracts with several European trailer manufacturers with an estimated value of SEK 650 m from 2014 to 2017, with the majority of this volume coming in the latter part of that period.

We are pleased that the German negotiations are coming close to a close so that we can implement the final phase of our restructuring program. Our operations in Heidelberg will be gradually restructured through the end of 2015. Our remaining operations are based on the core expertise we have involving air suspension products, which will result in an effective and focused unit that will contribute positively to Haldex in the coming years.”

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: Friday July 18 at 11.00 CEST
The press conference is broadcasted at: http://www.media-server.com/m/p/gmdt7eu4

To join the telephone conference:

Sweden: +46 8 505 564 74
UK: +44 203 364 5374
Denmark: +45 354 455 80
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