Interim report January – September 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)
Lars Corneliusson, President and CEO, comments: 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.
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment, Sandvik Rock Processing Solutions and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and approx. 1,800 employees. Ferronordic’s vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com
For investors and analysts, please contact:
Erik Danemar, Group CFO and Head of Investor Relations, Tel. +46 73 660 72 31, or firstname.lastname@example.org
For media and journalists, please contact:
Ceren Wende, Director, Marketing & Communication, Tel. +46 73 658 59 80, or email@example.com
This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 12 November 2021, 07:30 CET
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Latest press releases
Interim report 1 January – 30 September 2023
Q3 2023: Weak operationally. Key strategically.
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.