DEVELOPMENT IN THE BUSINESS AREAS

Components

Net sales in Components increased in the fourth quarter by 25 percent to SEK 675 million (542) and EBITA increased by 40 percent to SEK 58 million (42). Net sales during the financial year increased by 16 percent to SEK 2,355 million (2,029) and EBITA increased by 25 percent to SEK 187 million (149).

Market

Increased sales of production components to Nordic manufacturing companies combined with acquisitions generated strong profit growth during the quarter. Demand increased in all our major customer segments, such as the mechanical industry, electronics, wind energy and special vehicles. The business situation improved in both Sweden and Finland and stayed positive in Denmark. The Norwegian oil and gas market was weak, but thanks to good demand in infrastructure and the food industry, the business situation was stable overall.

Energy

Net sales in Energy increased in the fourth quarter by 15 percent to SEK 461 million (402) and EBITA increased by 40 percent to SEK 59 million (41). Net sales during the financial year increased by 22 percent to SEK 1,807 million (1,487) and EBITA increased by 50 percent to SEK 225 million (149).

Market

The market has been favourable throughout the financial year. During the quarter demand increased somewhat more from an already high level. Acquisitions and above all greater efficiency in our operations generated very favourable profit growth. Infrastructure investments in national and regional networks in the Nordic countries have continued to increase, and they are at a high level in Sweden in particular. Demand for niche products in electrical power distribution remained stable. Sales of products in the areas of electrical installation and electrical safety developed well in the Nordics and Great Britain.

Industrial Process

Net sales in Industrial Process increased in the fourth quarter by 20 percent to SEK 419 million (351) and EBITA increased by 17 percent to SEK 32 million (28). Net sales during the financial year increased by 11 percent to SEK 1,585 million (1,423) and EBITA increased by 9 percent to SEK 125 million (116).

Market

Sales to the production industry in the Nordics increased overall during the quarter, and demand increased from the majority of customer segments. Investments in the Nordic process and manufacturing industry grew. Demand in the shipping market improved, while the business situation in oil and gas remained weak. The situation for our operations outside the Nordics remained good, especially in customer segments such as vehicles and energy. Efficiency improvements are being implemented in several operations to meet the Group’s demands on profit growth, profitability and development.

Power Solutions

Net sales in Power Solutions increased in the fourth quarter by 14 percent to SEK 387 million (338) and EBITA increased by 24 percent to SEK 47 million (38). Net sales during the financial year increased by 17 percent to SEK 1,439 million (1,226) and EBITA increased by 38 percent to SEK 187 million (136).

Market

All in all, demand was good, and profit growth in the quarter was driven by a very strong organic sales increase. Greater demand for controls and ergonomics products for the special vehicles industry – the largest customer segment in this business area – made a strong contribution. The market for solutions with new battery technology and power supply solutions in the Nordic markets continued to improve. Demand decreased, however, from telecom and wind power customers.