New FSP contract signed, quarter severely impaired by COVID-19 effects.

SECOND QUARTER

· Net sales amounted to SEK 441 (781) million, an decrease of -43.5% on the same period last year.
· Operating earnings (EBIT) totaled SEK -59 (21) million, equating to an operating margin of -13.3% (2.7).
· Earnings after tax amounted to SEK -39 (14) million.
· Order bookings totaled SEK 409 (752) million, a decrease of -45.6% on the same period last year.
· Cash flow from operating activities totaled SEK 51 (52) million.
· Earnings per share were SEK -1.85 (0.71).
· Bulten has acquired a minority stake in TensionCam Systems AB (TensionCam) at a purchase sum of SEK 6 million.

JANUARY-JUNE

· Net sales amounted to SEK 1,262 (1,591) million, an decrease of -20.7% on the same period last year.
· Operating earnings (EBIT) totaled SEK -16 (79) million, equating to an operating margin of -1.2% (4.9).
· Earnings after tax amounted to SEK -30 (58) million.
· Order bookings totaled SEK 1,097 (1,485) million, a decrease of -26.1% on the same period last year.
· Cash flow from operating activities totaled SEK 114 (-5) million.
· Earnings per share were SEK -1.26 (2.83).
· Net debt amounted to SEK 634 (595) million. Net debt (excluding lease liabilities) totaled SEK 371 (347) million.
· The equity/assets ratio was 54.4% (54.8) at the end of the period. The equity/assets ratio (excluding lease liabilities) totaled SEK 59.4% (59.4).
 

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

· Bulten has signed a Full Service Provider (FSP) contract for supply of fasteners to a European automotive manufacturer, which is also an existing customer, with an annual order value of approximately EUR 60 million at full pace. Delivery date is set for July 24, 2020 and start-up costs are estimated to amount to approximately EUR 1 million.
· Bulten has recruited Markus Baum to a newly established position as Chief Commercial Officer (CCO) with effect from November 1, 2020Claes Lundqvist has been appointed Acting Chief Financial Officer (CFO), starting on August 1, 2020, and Fredrik Bäckström has assumed a newly established position as Chief Operating Officer (COO) with immediate effect.
 

CEO'S COMMENTS

"After the end of the quarter, Bulten has signed a Full Service Provider (FSP) contract with an annual order value of approximately EUR 60 million a year at full
pace. The contract is a transfer of an ongoing FSP set up for two assembly plants. Deliveries are planned to begin on 24 July 2020 and will progress over five years. The knowledge and experience Bulten has amassed over many years as a global manufacturer and Full Service Provider to a range of customers, was a key factor in winning the contract.

The effects of COVID-19 have had a serious impact on the global automotive industry, and by extension also on Bulten. Our order bookings and net sales were negatively affected during the second quarter, decreasing by 45.6% and 43.5% respectively. Vehicle production in Europe and the USA came to a virtual standstill
at the beginning of the quarter, although there has since been a partial recovery. In China, volumes are now nearly back to pre-pandemic levels. Measures and adjustments to the company's operations have been implemented in each market. At most, 1,200 employees have been included in various forms of working time reductions and short-term furloughing at the company's units in Europe and North America. However, the degree of furloughing fell during the quarter as volumes began to rise. Sales and production, however, remain at a significantly reduced level. It is difficult to predict at this time how vehicle production will be affected for
the rest of this year but with measures taken, we can adjust our production rate to the market situation at short notice.

Operating earnings during the quarter amounted to SEK -59 (21) million, due to significantly lower volumes as a result of COVID-19. Operating cash flow during the quarter was affected by the lower EBITDA level but, thanks to a strong focus on reducing working capital, cash flow overall has been positive and net debt has decreased during the quarter.

We abide by our strategy and our new long-term financial targets. PSM, which was acquired in February 2020, has developed well and synergy activities are going according to plan. We are building on for the future, and during the quarter Bulten acquired a minority stake in TensionCam at a purchase sum of SEK 6 million. TensionCam specializes in developing sensors for measuring clamp loads in screw joints, and the acquisition will further strengthen our technical offer.

2020 is a different and challenging year. We will remain focused on health, as well as on cash flow, profitability and growth."

Anders Nyström, President and CEO

 

Investors, analysts and media are invited to participate in the teleconference on July 10 at 11:00 CET. The report will be presented by Anders Nyström, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q2-2020. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

SE:  +46850558359
UK: +443333009274
US: +18335268381

Copies of the presentation will be available at www.bulten.com/ir approximately 30 minutes before start.

For further information, please contact:

Anders Nyström, President and CEO
Tel: + 46 31-734 59 00

Kamilla Oresvärd, Senior Vice President Corporate Communications
Tel: +46 70-520 59 17, e-mail: kamilla.oresvard@bulten.com

 

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact per-son set out above, 10 July 2020 at 08:30 CET.

Bulten Group is one of the leading suppliers of fasteners to the international automotive industry. The company's product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,700 employees in sixteen countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm.  Read more at www.bulten.com.

https://news.cision.com/bulten-ab/r/bulten-s-q2-report-2020,c3151704

https://mb.cision.com/Main/405/3151704/1277515.pdf

https://news.cision.com/bulten-ab/i/anders-nystrom,c2805405

(c) 2020 Cision. All rights reserved., source Press Releases - English