DEVELOPMENT IN THE BUSINESS AREAS
Components
Net sales in Components increased in the third quarter by 33 percent to SEK 767 million (579) and EBITA increased by 81 percent to SEK 68 million (38). Net sales during the period increased by 28 percent to SEK 2,153 million (1,680) and EBITA increased by 59 percent to SEK 205 million (129).
Market
Higher sales, in combination with several acquisitions, have created strong earnings growth and very good development of the operating margin. The market for production components for Nordic manufacturing companies remained favourable in Sweden, Denmark and Finland, while the Norwegian market overall was stable. The strong demand came from most major customer segments, including machinery production, wind energy, special vehicles and electronics.
Energy
Net sales in Energy in the third quarter amounted to SEK 442 million (465) and EBITA amounted to SEK 44 million (52). Net sales during the period increased by 2 percent to SEK 1,379 million (1,346) and EBITA amounted to SEK 159 million (166).
Market
Sales of infrastructure products to the primary and regional grids in the Nordic region declined during the quarter, in comparison with a very strong quarter in the previous year. The underlying demand in this market is found to be relatively stable, but the level of sales in the quarter combined with increased competition had a negative impact on operating profit. The conditions for business in niche products for power distribution was more stable during the quarter. On the other hand, sales of products for building and installation, and for the manufacturing and wind power industries, increased.
Industrial Process
Net sales in Industrial Process increased in the third quarter by 3 percent to SEK 426 million (415) and EBITA increased by 13 percent to SEK 32 million (29). Net sales during the period increased by 6 percent to SEK 1,232 million (1,166) and EBITA increased by 12 percent to SEK 104 million (93).
Market
Sales to the manufacturing industry rose during the quarter and demand in customer segments such as machinery production and special vehicles showed a further increase. Overall, investments in the Nordic process industry were stable. Business conditions continued to be especially favourable in the marine market as a result of stricter requirements for measuring and removal of emissions. Selective efficiency measures are ongoing to improve profitability.
Power Solutions
Net sales in Power Solutions increased in the third quarter by 10 percent to SEK 398 million (362) and EBITA increased by 10 percent to SEK 50 million (46). Net sales during the period increased by 9 percent to SEK 1,145 million (1,052) and EBITA increased by 6 percent to SEK 148 million (140).
Market
All in all, demand increased during the quarter, but business conditions varied from one customer to another, and among product segments. Higher sales of control and ergonomics products for the special vehicle industry, which is the business area’s biggest customer segment, contributed strongly. Demand for battery solutions was strong in most customer segments, while sales of power supply solutions to customers in, for example, the telecommunications and wind power industries, remained weak.