Business areas
The division into business areas reflects Addtech's internal organisation and reporting system. Addtech reports its business areas as operating segments. As of 1 April 2015, Addtech’s operating companies have been organised in the five business areas Components, Energy, Industrial Process, Power Solutions and Life Science/AddLife. In March 2016 the Group’s shareholdings in AddLife were distributed through an IPO on Nasdaq Stockholm, after which four business areas remain.
Components |
|||||||||||||||||||||||||||||
|
Demand for production components from Nordic manufacturing companies was stable at the end of the year. The business situation in Sweden and Denmark was sound and sales climbed somewhat in the Swedish operation. The will to invest in oil and gas in Norway was at a substantially lower level than the previous year. When considered over the year, this trend had a negative impact on our performance, for which reason we are now focusing on cost-saving measures. In Finland, demand for our operations was relatively sound despite the persistently challenging business climate. During the year Partco Oy, RECAB Embedded Computers AB, Kretsteknik Nordic AB, Goodtech Products AS and INL System AB were acquired. |
|
||||||||||||||||||||||||||||
Energy |
|||||||||||||||||||||||||||||
|
Overall, underlying demand improved at the end of the year. The business situation for electrical installation and electrical safety products was positive in Sweden, Denmark and Finland, but weaker in Norway. Lower demand for oil and gas in Norway is a challenge for several operations, for which reason they are implementing cost-saving measures. Infrastructure investments in electricity transmission rose for smaller projects and sales of niche products in electrical power distribution were stable. Four acquisitions were made during the year: Dafine Engineering Oy, EB Elektro AS, CTM Lyng AS and Enöque Svenska AB. |
|
||||||||||||||||||||||||||||
Industrial Process |
|||||||||||||||||||||||||||||
|
Overall, demand in the Nordic region remained unchanged during the last quarter of the year, while it rose in the rest of Europe. Sales slowed somewhat at the end compared with the same quarter the previous year and the business situation varied among the different customer and product segments. Customers in energy and the Nordic process industry, including oil and gas, reduced their investments, while demand from machinery manufacturers was stable. In the markets for vehicles and medical devices, however, the business situation improved during the last quarter. |
|
||||||||||||||||||||||||||||
Power Solutions |
|||||||||||||||||||||||||||||
|
Underlying sales remained unchanged compared with the previous year, while demand increased during the last quarter. The operating margin is impacted by higher deliveries of battery products in particular, with lower margins and streamlining measures. Demand for solutions with new battery technology and power supply solutions in the Nordic markets has continued to improve. The business situation for customers in energy and telecom was unchanged while demand for products to the special vehicle industry continued to increase at the end of the financial year. The business area made one acquisition during the year, Powermec AB. |
|
||||||||||||||||||||||||||||