Strong sales growth, but margin temporarily pressured by supply chain disruption
SECOND QUARTER
Sales rose by 30 percent to
Gross margin increased by 1.4 percentage points to 27.5 percent (26.1).
Adjusted operating income increased to
Reported operating income totaled
Changes in exchange rates had a negative impact on operating income of
Profit after tax was
Earnings per share were
Cash flow from operating activities totaled
The savings programs developed according to plan and reduced expenses by
A joint venture has been formed with
The financial targets and dividend policy have been updated.
The supply chain is strained due to increased raw material and freight costs as well as component shortages. The company has been actively working to mitigate some of the effects and this is expected to have a positive effect from the third quarter. There is great shortage of semiconductors, which will have an impact on some of
EVENTS AFTER THE END OF THE QUARTER
An agreement has been signed with one of the world's largest manufacturers of heavy trucks for our ADB product.
Comment from
In mid-June I took over the role of CEO of
STRONG ORGANIC GROWTH
Net sales showed strong improvement, despite continued constraints in the supply chain, and totaled
A strong organic sales growth was reported by Region Americas and
The trailer segment showed strong organic growth, which is a result of our increased focus on the trailer market as well as the vast sales drop last year. The truck segment also noted strong organic growth, mainly due to the large sales decline last year. The aftermarket segment was generally less affected by COVID-19 last year and hence organic sales growth was somewhat smaller in this customer segment than in the other two.
MARGIN PRESSURED BY THE STRAINED SUPPLY CHAIN
Adjusted operating profit totalled
PRODUCT AND OFFERING
The development of our proposition focusing on the trailer segment and aftermarket continues. As well as growing our position as an Air Disc Brake supplier of specific applications addressing both trucks and bus OEMs.
In mid-April we announced the agreement to form a joint venture company with
Our key focus on electrification and our EMB product has proved successful. We are in close dialog with several key OEMs in
I am also pleased to announce that we after the reporting period have closed an agreement with one of the world's largest manufacturer of heavy trucks for our ADB product. The deal is an important milestone to grow in the truck segment besides our excellent position in the trailer market. In particular we would like to mention the strategic importance of an embedded additional agreement, which include to equip a showcase truck with our new EMB product. This breakthrough of introducing our next generation product on the European market strengthens our confidence in our market opportunities and ability to meet new demands on braking systems in connected, electric trucks and trailers.
OUTLOOK
Although the second quarter noted a recovery from the challenging last year, there are still a lot of uncertainties left. During the second quarter, we see increased costs for commodities, semiconductors and freight. From the third quarter onwards, we expect to mitigate large parts of the additional costs in terms of increased material costs by adjusting raw material prices between our suppliers and customers. We estimate that increased freight costs will continue throughout the year. However, there is great uncertainty about these external factors and we are following market developments closely.
In addition to increased costs, there is also a significant lack of access to semiconductors, which will have an impact on some of
We are taking strong measures to improve our supply chain processes and in addition to this, my focus for the coming months will be on performance management, people development, and meeting with customers. Our work on the strategic review is also continuing and I will provide an update during the second half of 2021. I am confident we will see solid results from these efforts and I look forward to great collaborations and an exciting journey ahead.
Contact:
President & CEO
Telephone: +46 (0) 418-47 60 00
CFO and IR
Telephone: +46 (0)418-47 60 00
This report has not been reviewed by the company's auditors.
This information is such that
About
Over 100 years of powerful innovation gives
This document is essentially a translation of Swedish language original thereof. In the event of any discrepancies between this translation and the original Swedish document the latter shall be deemed correct.
Contact:
Haldex HQ
Box 507, SE-261 24 Landskrona,
Tel: +46 418 47 60 00
Fax: +46 418 47 60 01
E: info@Haldex.com
(C) 2021 Electronic News Publishing, source