Bulten has grown sales in 2017 so far, with Q2 net sales up 3% to SEK 708 million and half year net sales rising 6% and hitting SEK 1,486 million.
Bulten received a strong order intake during Q2 and growth was affected be fewer production days in the period - indicating "strong underlying demand in the automotive industry", according to Bulten's boss. Bulten entered a partnership with US firm Ramco for automotive fastener distribution at the start of this year.
Order bookings amounted to SEK 765 million - up 13.9% on the same period last year. Earnings after tax were SEK 39 million in Q2.
Order bookings amounted to SEK 1,485 million - up 8.3% on the same period last year.
Significant events after the end of the reporting period include Bulten's joint venture Ram-Bul signing a contract worth USD $5.5 million per year which is expected in 2019/2020. Estimated delivery value is distributed USD $5m for Bulten and USD $0.5m for Ramco. Bulten has also signed an FSP contract worth around EUR 30 million per year at full volumes, expected in 2020.
"Electric vehicles require fasteners adapted for new material choices"
“It is very pleasing that after the end of the quarter Bulten signed both a new extensive FSP contract and a strategically important contract in the US," said Tommy Andersson, President and CEO. "During Q2, net sales increased by 3.0%. The growth during the quarter has been affected by fewer production days compared with the corresponding quarter last year and by somewhat lower volumes due to model changes. The development indicates strong underlying demand in the automotive industry combined with Bulten’s strong position on this market, which is confirmed by a strong order intake during the quarter. Earnings and profitability continued to have a positive development and the return on capital employed rose to 15%. Bulten’s financial position is strong and during the quarter all our financial targets were reached and we are therefore well equipped for a phase of growth and investments in production and logistics.
"In May, we received further evidence of our customers’ appreciation when our joint venture, BBB Services Ltd, was awarded Ford Motor Company’s prestigious Special Recognition World Excellence Award.
"The development of electric vehicles requires that fasteners be adapted for new material choices and design solutions and Bulten is at the forefront of providing vehicle manufacturers with the latest technology. During the quarter, deliveries to pre-series to the next generation of electrical vehicles have started.”