DEVELOPMENT IN THE BUSINESS AREAS

Components

Net sales in Components increased in the fourth quarter by 25 percent to SEK 848 million (675) and EBITA increased by 35 percent to SEK 79 million (58). Net sales during the financial year increased by 27 percent to SEK 3,001 million (2,355) and EBITA increased by 52 percent to SEK 284 million (187).

Market

Strong organic sales growth, in combination with several acquisitions, again created strong earnings growth during the quarter and further good increase in our operating margin. In our businesses in Sweden, Denmark and Finland, demand for production components from Nordic manufacturing companies remained very high. We recorded strong demand from most major customer segments, including machinery production, electronics, special vehicles and wind power. Sales in Norway were stable overall, and we are beginning to see signs of increased activity – from a very low level – in the oil & gas customer segment.

Energy

Net sales in Energy increased in the fourth quarter by 1 percent to SEK 467 million (461) and EBITA amounted to SEK 56 million (59). Net sales during the financial year increased by 2 percent to SEK 1,846 million (1,807) and EBITA amounted to SEK 215 million (225).

Market

Sales of infrastructure products to the primary and regional grids in the Nordic region were stable overall during the quarter. Willingness to invest is good and, given the intensified competition we noted during the year, we are focusing on business deals offering a good operating margin. For our subsidiaries operating in the area of niche products for power distribution, the market situation varies but is relatively stable overall. Demand for cable products for the manufacturing industry and for electrical installation products continued to rise.

Industrial Process

Net sales in Industrial Process increased in the fourth quarter by 6 percent to SEK 445 million (419) and EBITA increased by 18 percent to SEK 38 million (32). Net sales during the financial year increased by 6 percent to SEK 1,677 million (1,585) and EBITA increased by 14 percent to SEK 142 million (125).

Market

Good organic growth, combined with successful efficiency activities drive produced strong growth in earnings and a clear improvement in operating margin. Sales to the manufacturing industry continued to show positive growth, above all in customer segments such as the mechanical industry and special vehicles. Demand also increased from customers in the process industry and the marine market as a result of stricter requirements for measuring and removal of emissions.

Power Solutions

Net sales in Power Solutions in the fourth quarter amounted to SEK 365 million (387) and EBITA increased by 6 percent to SEK 50 million (47). Net sales during the financial year increased by 5 percent to SEK 1,510 million (1,439) and EBITA increased by 6 percent to SEK 198 million (187).

Market

Business conditions continued to vary among different customer and product segments, but overall demand was stable during the quarter. The biggest customer segment in the business area, special vehicles, showed high demand, and we increased sales of control and ergonomics products. The market for new types of battery technologies developed strongly, while demand for traditional battery solutions declined. In the telecom and wind power customer segments, business conditions remained weak, whereas demand from electronics related customers increased.