Bulten has released its financial report for the fourth quarter of 2020. The report shows a record quarter end for the group with net sales amounting to SEK 1,080 (784) million, an increase of 37.6% on the same period last year.
Anders Nyström, President and CEO at Bulten said: “The improvement we saw at the end of the third quarter has continued during the fourth quarter with a recovery in the market, phasing-in of new contracts according to plan, and good development in the acquired company, PSM. During the quarter, Bulten’s net sales increased by 37.6% and order bookings by as much as 41.1%.”
SEK 129 million is attributable to the acquisition of PSM which was acquired 28 February 2020. Bulten acquired all shares in PSM International Holdings Limited (PSM) for a purchase price of USD 24.5 million (SEK 230 m) on a cash-free and debt-free basis.
The report shows Bulten’s operating earnings (EBIT) totalled SEK 92 (27) million, equating to an operating margin of 8.5% (3.5). Adjusted operating earnings totalled SEK 85 (42) million, equating to an adjusted operating margin of 7.8% (5.4).
“Thanks to focused initiatives, we had a positive cash flow from operating activities of SEK 176 million, of which change in working capital totalled SEK 55 million. Even disregarding acquisition effects this is a record quarter in Bulten’s history, both as regards sales and profit – something we are very proud of,” said Nyström.
Additionally, 2020 saw Bulten also acquire a minority holding in TensionCam Systems AB (TensionCam) at a purchase sum of SEK 6 million.
Bulten also signed a Full Service Provider (FSP) contract for delivery of fasteners to a European OEM, which is also an existing customer, worth in the region of EUR 60 million a year at full production. Deliveries began in July 2020 and start-up costs are estimated to total approximately EUR 1 million.
Expecting coronavirus disruptions to continue, Bulten claim they have maintained flexibility and are able to adapt to the situation going into 2021. The group is also continuing the infection control measured introduced to ensure health and safety regulations are met.
Nyström said: “Despite a very turbulent 2020, we have succeeded well in our efforts to complete our ‘Stronger 24’ strategy plan, which we introduced at the beginning of 2020. The executive management team has been expanded and is partly new, and this means among others a stronger focus on sales to new customers and on technology development. The relocation of our production units in Taiwan and the USA has gone according to plan, and we still see potential in synergies with our acquired company PSM, which has now been fully integrated in the Bulten organization. Bulten continues to gain market share and we see good opportunities to strengthen our position further in 2021.”