Ferronordic Interim Report January - September 2019
THIRD QUARTER 2019
- Revenue increased 22% (12% increase in local currency) to SEK 964m (SEK 791m)
- Operating profit increased 36% to SEK 109m (SEK 80m)
- Operating margin was 11.3% (10.1%)
- The result for the period increased 22% to SEK 74m (SEK 61m)
- Earnings per ordinary share amounted to SEK 5.09 (SEK 4.17)
- Cash flows from operating activities amounted to SEK 95m (SEK 104m)
FIRST NINE MONTHS 2019
- Revenue increased 25% (21% increase in local currency) to SEK 2,787m (SEK 2,222m)
- Operating profit increased 39% to SEK 262m (SEK 189m)
- Operating margin was 9.4% (8.5%)
- The result for the period increased 33% to SEK 193m (SEK 145m)
- Earnings per ordinary share amounted to SEK 13.31 (SEK 8.82)
- Cash flows from operating activities amounted to SEK -333m (SEK 138m)
Lars Corneliusson, CEO Ferronordic, comments: "The third quarter was eventful for Ferronordic. The market for our main product groups in Russia grew by around 5% and we saw continued growth in both equipment and aftermarket sales. Meanwhile, our investments into contracting services yielded results and contributed to revenue and margin growth. Total revenue grew 22% Y-o-Y to SEK 964m and our operating margin expanded 1.1pp to 11.3%. As a result, our operating profit increased 36% to SEK 109m, our best operating result to-date for a single quarter. Cash flows from operations improved and net debt decreased versus the previous period. Our expansion in Kazakhstan continues and we now operate at seven locations in the country. Meanwhile, we continue preparations for the component rebuild centre, expected to open in Q1 2020. During the quarter, we announced our intention to become dealer for Volvo and Renault Trucks in Germany. If completed, two transactions would see us take over operations at eleven locations in Germany and become responsible for a sales area corresponding to approx. 20% of the German market. Looking forward into the rest of 2019 and 2020, we believe that the market will continue to recover at about the same pace as previously in 2019, with potential for additional growth if the implementation of the so-called National Projects picks up speed.”
Ferronordic is the authorized dealer of Volvo Construction Equipment, Dressta, Mecalac and Rottne in Russia, and for Volvo Construction Equipment and Mecalac in Kazakhstan. In parts of Russia, Ferronordic has also been appointed aftermarket dealer for Volvo and Renault Trucks and dealer for Volvo Penta. The company began its operations in 2010. It is established in all federal districts of Russia with over 80 outlets and over 1,100 employees. Ferronordic’s vision is to be regarded as the leading service and sales company in the CIS markets. The shares in Ferronordic are listed on Nasdaq Stockholm.
Financial calendar 2019/20
Year-end report January-December 2019 20 February 2020
Interim report January-March 2020 13 May 2020
For more information, please contact:
Ferronordic AB (publ)
114 34 Stockholm
Corporate ID no. 556748-7953
Phone: +46 8 5090 7280
This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 22 November 2019, 07:30 CET.
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Ferronordic expands to the USA – acquires one of the country’s largest Volvo Construction Equipment dealers
Ferronordic has entered into an agreement to purchase Rudd Equipment Company, Inc. (“Rudd”), one of the largest dealers of Volvo CE in the United States with operations in all or parts of nine states. Ferronordic thereby takes its first step to expand into the important US market. The purchase price amounts to USD 95.0m, corresponding to 5.8 x 2022 adjusted earnings before tax. In 2022, Rudd had sales of USD 308.3m with an operating income of USD 16.5m and earnings before tax of USD 16.4m (both adjusted to IFRS). In addition, Ferronordic acquires two real properties for USD 10m, currently rented by Rudd.