Haldex Interim Report, July – September 2021

0


STOCKHOLM, 21 October 2021 / PRNewswire / –

THIRD QUARTER

  • Net sales increased 25 percent for SEK 1,203m (964). Organic growth was 26%.
  • Adjusted operating profit rose to 100 m (58), equivalent to an adjusted operating margin of 8.3% (6.0).
  • The reported operating profit amounts to 96 m SEK (-23). Non-recurring net items SEK 4m related to the long-term restructuring program impacted operating income.
  • Changes in exchange rates had a positive impact on the operating result of SEK 1m (-1).
  • Profit after tax amounts to SEK 55m (-104). Totalized tax SEK -21m (-75).
  • Earnings per share were 1.11 SEK (-2.15).
  • Cash flow from operating activities increased 26 m SEK (231).
  • Structural savings programs developed according to plan and reduced expenditure on 21 m SEK.
  • An agreement has been reached with one of the world’s largest heavy truck manufacturers for the delivery of Haldex pneumatic disc brakes, which is a milestone in the truck segment. The agreement includes equipping a distribution vehicle with the electromechanical braking system (EMB), which is a breakthrough for the European market. The deal was reported as a post-quarter end event in the second quarter report.
  • The supply chain is under strain due to rising raw material and freight costs as well as component and semiconductor shortages.

EVENTS AFTER THE END OF THE QUARTER

  • The Group’s management has two new positions. A Sales & Product Management EVP has been appointed with a clear objective to further strengthen Haldex’s growth. An executive vice president of purchasing has been appointed to improve procurement processes and increase direct material cost savings.

Comment from Jean-Luc Desire, President and CEO:

This is my first full quarter as CEO of Haldex, and I am delighted to see a strong recovery in most of our markets and segments, despite still challenging market conditions. Financially, the turnover improved significantly and reached SEK 1,203m (964) in the third quarter, which equates to organic growth of 26%. Although the growth is compared to a difficult third quarter last year, we are seeing an improvement in underlying demand from our customers and, based on our assessment of external market data, we are taking market share. Net sales increased 4 percent from the previous quarter. The net turnover since the beginning of the year amounts to 3,421m SEK (3,019), corresponding to organic growth of 21%.

The Americas and Europe recorded organic sales growth of 26 and 38 percent respectively, while Asia reported a 7 percent drop, following a quarter with strong demand last year. The aftermarket segment experienced strong growth of 22% and sales have successfully grown in all regions. It is also positive to see strong growth in the trailer segment and the fact that our increased focus in this segment is paying off.

With price adjustments implemented in combination with higher volumes and successful cost savings, we achieved adjusted operating profit of 100 m (58), corresponding to a margin of 8.3% (6.0) in the third quarter. Since the start of the year, adjusted operating income has amounted to SEK 297m (96), corresponding to a margin of 8.7% (3.2). Increased sales and supply chain constraints, however, led to higher working capital and therefore lower cash flow. Third quarter cash flow from operating activities was 26 m SEK (231).

Activity levels have increased and supply chain constraints continue, causing both price increases and shortages of some commodities, semiconductors and freight. We have mitigated a significant portion of these additional costs by increasing customer prices to offset the increase in raw material prices, however, as previously mentioned, we are not able to fully mitigate the impact of the increase. transportation costs. We believe that the increase in the costs of raw materials and freight will continue in the fourth quarter and have therefore decided on further measures. There is still a significant shortage of semiconductors, which will impact some Haldex products at least until early next year. However, there is great uncertainty about these external factors, which is why we are closely monitoring the development of the market and will take action if necessary.

I can also share with you that we have strengthened the leadership of the group with two new members. To further focus on growth, we have appointed an Executive Vice President of Global Sales and Product Management with Global Product Responsibility. To achieve operational excellence in managing our material costs, sourcing has been established as a separate function and a Procurement EVP has been appointed. We have also strengthened our partnership with the ANAND Group concerning our joint venture in India, which is an important step towards increasing the share of low-cost purchases. With these organizational updates, I am confident that we have a more efficient and focused approach to growing the Haldex business in the future.

An exciting upcoming event is that Haldex is launching the next generation Electronic Braking Stability (EBS) Platform for Trailers at the Solutrans trade fair in France in November. The EB + 4.0 platform integrates the parking brake control into the electronic management and offers a new modular and customizable approach to customer-specific functions. The Trailer Brake Control System serves as a platform for different product families with the ability for multiple systems to communicate with each other to monitor data, transmit data and act on data. This product offering is a change to be present in the “brain” of trailer data. With this launch, Haldex sets new standards for trailer braking and suspension systems.

Work on our Strategic Review is underway, and I look forward to sharing our updated approach and exciting journey ahead in Q4.

For more information, please contact:

Jean-Luc Desire, President and CEO
Telephone: +46 (0) 418-47 60 00

Lottie saks, CFO
Telephone: +46 (0) 418-47 60 00

Jenny Boström, Head of Investor Relations
Telephone: +46 (0) 418 47 62 01
E-mail: [email protected]

This information is such that Haldex AB (publ) is obliged to publish under the EU Market Abuse Regulation. The information has been submitted for publication through the contacts listed above on Thursday, October 21, 2021 To 7:20 a.m. CEST.

Full interim report

The full interim report is available at https://www.haldex.com/en/corporate/investors or to http://news.cision.com/haldex

Investor presentation

Investors, analysts and media are invited to an online presentation of the report on Thursday October 21, To 11:00, with the CEO Jean-Luc Desire and financial director Lottie saks.

The conference call will be webcast live. Link to webcast and conference call numbers:

https://financialhearings.com/event/13301

The recorded webcast will be available afterwards, and the interim report and presentation can be downloaded from the Haldex website: https://www.haldex.com/en/corporate/investors/financial-reports/

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/haldex/r/haldex-interim-report–july—september-2021,c3437147

The following files are available for download:

SOURCE Haldex


Leave A Reply

Your email address will not be published.