1 JANUARYĖ30 JUNE 2014
∑ Order intake rose 7% to
SECOND QUARTER 2014
∑ Order intake rose 7% to
While the cautious optimism that existed after the first quarter remains, we have not yet seen any clear trend in the form of a general upswing in demand. The business climate improved somewhat during the second quarter compared with the preceding quarter and corresponding quarter a year ago, but is still characterised by great uncertainty. In addition, order intake for the Groupís companies continues to show considerable variation between months, segments and geographies.
Acquisitions are central to the Indutrade Groupís development, and the pace of acquisition increased during the quarter through four completed acquisitions and a total of six since the start of the year. Combined annual sales for the units acquired thus far during the year amount to approximately
We see that Indutradeís business model and our company culture fit well in the
Order intake during the quarter exceeded net sales by 2% and was 7% higher than in the corresponding period in 2013. All of the business areas reported order intake in excess of net sales during the quarter, and three of the five business areas had higher order intake for comparable units than the corresponding period a year ago.
In the Nordic countries, development was slightly positive in
Net sales during the past quarter grew 7%. For comparable units the change was marginal.
Engineering & Equipment, with operations primarily in
Flow Technology noted higher order intake also during the second quarter, which was distributed across most segments in the business area. Earnings for the quarter were hurt by somewhat lower gross margins combined with a slight rise in the business areaís overheads.
Fluids & Mechanical Solutions experienced positive development during the quarter for most of the business unitís operations, except for the filters segment, which noted a slight decline. Higher net sales combined with continued good cost control resulted in improved profitability for the quarter.
Industrial Components continues to perform very strongly. Order intake grew 16% during the quarter, and growth was both organic and acquisition -driven. Most companies showed growth, particularly in the med-tech, mechanical components and industrial chemical products segments. Earnings improved by 30%, with a good EBITA margin.
Special Productsí total order intake rose 7% despite negative organic growth, owing to a decrease in project-based orders in
The Groupís gross margin remains stable at 34% (34%). The EBITA margin was 11.6% for the quarter (11.6%), which is higher than the Groupís target of a minimum 10% EBITA margin over a business cycle.
Four acquisitions were carried out in the
The trend we have seen during the first half of the year will likely continue during the coming autumn, i.e., some growth in a number of segments and in certain geographical areas. Our ambition is, according to Indutradeís business model, to continue acquiring companies during the autumn.
- high-tech products for recurring needs - growth through a structured and tried-and tested acquisition strategy - a decentralised organisation characterised by an entrepreneurial spirit.
The Group is organised into five business areas: Engineering & Equipment, Flow Technology, Fluids & Mechanical Solutions, Industrial Components and Special Products.
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