Bulten’s Q1 report reveals a strong first quarter with net sales of SEK 1,034 (1,103) million and two new Full Service Provider contracts worth a combined SEK 175 million a year at full production.
Adjusted operating earnings totalled SEK 72 (98) million, equating to an adjusted operating margin of 7.0% (8.9).
Order bookings were up 12.2% on the same period last year and amounted to SEK 1,134 (1,010) million.
In light of Russia’s invasion of Ukraine and the related sanctions, at the beginning of March Bulten decided to discontinue its operation in Russia. Divestment costs related to the Russian operation burdened the result by SEK -83 million. Apart from the transaction costs, the divestment will not have effect on the cash flow.
In January, Bulten signed an FSP (Full Service Provider) contract for a new European vehicle program for an existing customer. The contract is worth in the region of SEK 100 million a year at full production. Bulten’s sustainability focus was a key factor in winning the contract.
A second FSP contract was signed in March for a new European electric vehicle for an existing customer. The contract is worth in the region of SEK 75 million a year at full production.
Bulten held a capital markets day in February where the main messages were that the financial targets up until 2024 remain the same and that further acquisitions, primarily in North America, are viewed as an important parameter in achieving the desired growth, both within and outside of the automotive industry.
“Bulten’s global presence and its product and sustainability offering are producing results. Q1 was our third best quarter ever in terms of sales with a figure of SEK 1,034 (1,103) million. This is despite it being a difficult quarter with several challenges: the pandemic, disruptions to customers’ supply chains, and Russia’s invasion of Ukraine. The EBIT margin, adjusted for divestment costs related to our Russian operation, was 7.0% (8.9),” said Anders Nyström, President and CEO.