Following a strong order book at the end of 2016, Bulten's prospects for winning market share are looking strong in the second half of 2017, according to the fastener supplier.
Bulten has released its financial report for Q4 and full year 2016, revealing profitability was up in Q4.
Net sales hit Swedish Krona (SEK) 674 million (667), representing an increase of 1%, like-for-like. Order bookings reached SEK 744 million (674), up 10.5% on Q4 2015.
Full year 2016
Net sales slipped marginally (-0.6%) to SEK 2,676 million (SEK 2,693 million, 2015). Earnings after tax hit SEK 146 million (SEK 141m in 2015).
“The year ended strongly with a 10.5% rise in order bookings for the final quarter compared with the same period last year," said Tommy Andersson, President and CEO. "Bulten’s prospects for winning market share will be good from the second half of 2017, based on signed contracts and also on ongoing discussions with customers.
"Bulten continued to perform well in terms of profitability in the fourth quarter and is again reporting strong earnings and cash flow. During the quarter we have further reinforced our financial position and our key indicators, which is very pleasing. The Board therefore proposes the AGM a total dividend of SEK 4.50 per share for 2016, of which 3.50 SEK per share is to be considered as ordinary dividend and 1.00 SEK per share is to be considered as extra dividend. The operating margin increased to 7.7% and the return on capital employed to 13.9%, which are the consequence of a good, even rate of production and of completed optimisation measures.
Being a supplier to the automotive industry is challenging on many levels but we have managed to strengthen our customer relations by, among other things, supplying the best quality and service at the lowest possible cost. We have also advanced our position in technology for electric cars and hybrids.”
This year Bulten launched a new global marketing and sales organisation to support profitable growth and long-term strategy.