Third Quarter 2021

Third Quarter 2021

THIRD QUARTER 2021

  • Revenue increased by 47% to SEK 1,661m (1,129)
  • Operating profit increased by 37% to SEK 147m (107)
  • Operating margin decreased to 8.9% (9.5)
  • The result for the period increased by 34% to
    SEK 109m (81)
  • Basic earnings per share amounted to SEK 7.48 (5.57)
  • Cash flows from operating activities amounted to
    SEK 327m (100)

JANUARY- SEPTEMBER 2021

  • Revenue increased by 31% to SEK 4,517m (3,450)
  • Operating profit increased by 41% to SEK 371m (263)
  • Operating margin increased to 8.2% (7.6)
  • The result for the period increased by 41% to SEK 251m (177)
  • Basic earnings per share amounted to SEK 17.27 (12.21)
  • Cash flows from operating activities amounted to SEK 538m (514)
Selected group ratios
SEK m (or as stated)
2021 Jul-Sep
2020 Jul-Sep
%
2021 Jan-Sep
2020 Jan-Sep
%
2020 Full year
Revenue
2021 Jul-Sep 1,661
2020 Jul-Sep 1,129
% 47%
2021 Jan-Sep 4,517
2020 Jan-Sep 3,450
% 31%
2020 Full year 4,635
Gross profit
2021 Jul-Sep 324
2020 Jul-Sep 221
% 46%
2021 Jan-Sep 825
2020 Jan-Sep 610
% 35%
2020 Full year 797
Operating profit
2021 Jul-Sep 147
2020 Jul-Sep 107
% 37%
2021 Jan-Sep 371
2020 Jan-Sep 263
% 41%
2020 Full year 328
Result for the period
2021 Jul-Sep 109
2020 Jul-Sep 81
% 34%
2021 Jan-Sep 251
2020 Jan-Sep 177
% 41%
2020 Full year 222
Result per ordinary share, SEK*
2021 Jul-Sep 7.48
2020 Jul-Sep 5.57
% 34%
2021 Jan-Sep 17.27
2020 Jan-Sep 12.21
% 41%
2020 Full year 15.25
Cash flow from operations
2021 Jul-Sep 327
2020 Jul-Sep 100
%  
2021 Jan-Sep 538
2020 Jan-Sep 514
%  
2020 Full year 693
Net debt / (cash)
2021 Jul-Sep -75
2020 Jul-Sep 83
%  
2021 Jan-Sep -75
2020 Jan-Sep 83
%  
2020 Full year -20
Gross margin, %
2021 Jul-Sep 19.5%
2020 Jul-Sep 19.6%
% -0.1pp
2021 Jan-Sep 18.3%
2020 Jan-Sep 17.7%
% 0.6pp
2020 Full year 17.2%
Operating margin, %
2021 Jul-Sep 8.9%
2020 Jul-Sep 9.5%
% -0.6pp
2021 Jan-Sep 8.2%
2020 Jan-Sep 7.6%
% 0.6pp
2020 Full year 7.1%
Working capital/LTM Revenue, %
2021 Jul-Sep 0%
2020 Jul-Sep 8%
% -8.1pp
2021 Jan-Sep 0%
2020 Jan-Sep 8%
% -8.1pp
2020 Full year 5%
Equity/total assets, %
2021 Jul-Sep 27%
2020 Jul-Sep 33%
% -6.1pp
2021 Jan-Sep 27%
2020 Jan-Sep 33%
% -6.1pp
2020 Full year 31%
Return on capital employed, %
2021 Jul-Sep 27%
2020 Jul-Sep 25%
% 2.0pp
2021 Jan-Sep 27%
2020 Jan-Sep 25%
% 2.0pp
2020 Full year 20%
Return on equity, %
2021 Jul-Sep 48%
2020 Jul-Sep 44%
% 4.6pp
2021 Jan-Sep 48%
2020 Jan-Sep 44%
% 4.6pp
2020 Full year 40%
Lars Corneliusson
Lars Corneliusson, CEO Ferronordic

In the third quarter of 2021, Ferronordic achieved another record result thanks to great efforts from our whole organization


"In the third quarter of 2021, Ferronordic achieved another record result. Total revenue grew by 47% to SEK 1,661m and the operating profit was SEK 147m with an operating margin of 8.9%. Working capital remained low as demand outpaced limited supply. Cash flows from operating activities were strong and contributed to the Group moving back to a net cash position. In Russia/CIS, the market for construction equipment remained strong as commodity prices grew and infrastructure investments continued. Customer machine utilisation also increased, which together with our digital sales efforts contributed to good growth in aftermarket sales. In contracting services, we continued to develop our project in Norilsk. Total revenue in Russia/CIS grew by 48% and the operating profit by 44% to SEK 179m. In October, we announced the expansion of our partnership with Sandvik on mobile crushers and screens to also become the distributor of the bigger and more complex stationary crushers and screens. In Germany, the total market for heavy trucks was largely flat. In our sales area, the market declined by 13% while our new trucks sales increased by 25% in units and we gained further market share. Our used trucks business, launched at the end of 2020, continued to grow. Our aftermarket sales improved, partly due to acquisitions. During the third quarter, we accelerated efforts to restructure and improve our organisation. Partly as a result restructuring costs, operating result decreased compared to last year. We continue to build a customer centric platform and develop our network. In the quarter, we started construction of our new service and sales hub for the Hannover region and also announced the acquisition of a workshop in Bergstrasse. Current uncertainty in our markets mainly relates to supply chain constraints, which we expect to continue well into 2022. In a longer perspective, we see strong underlying fundamentals and business opportunities in our markets."