Strong sales growth, but margin temporarily pressured by supply chain disruptionSECOND QUARTER- Sales rose by 30 percent to
SEK 1,138m (875). Organic growth was 42 percent. -
Gross margin increased by 1.4 percentage points to 27.5 percent (26.1).
-
Adjusted operating income increased to
SEK 82m (-3), equivalent to an adjusted operating margin of 7.2 percent (-0.3). -
Reported operating income totaled
SEK 79m (-151). Restructuring costs of SEK 3m related to the strategic review of the company impacted profit. -
Changes in exchange rates had a negative impact on operating income of
SEK -9m (-8). -
Profit after tax was
SEK 54m (-139). Tax totaled SEK -22m (+24). -
Earnings per share were
SEK 1.11 (-2.95). -
Cash flow from operating activities totaled
SEK 19m (-96). -
The savings programs developed according to plan and reduced expenses by
SEK 27m net, of which the structural programs contributed SEK 55m . Jean-Luc Desire took over as CEO on June 14, 2021 .-
Håkan Karlsson was elected as the new Chairman of the Board at the AGM on
26 May, 2021 . -
A joint venture has been formed with
FAST Group to produce and sell disc brakes for both new production and the aftermarket, focusing initially on China . -
The financial targets and dividend policy have been updated.
-
The supply chain is strained due to increased raw material and freight costs as well as component shortages. The company has been actively working to mitigate some of the effects and this is expected to have a positive effect from the third quarter. There is great shortage of semiconductors, which will have an impact on some of
Haldex products for at least the second half of 2021.
- Sales rose by 30 percent to
SEK 1,138m (875). Organic growth was 42 percent. - Gross margin increased by 1.4 percentage points to 27.5 percent (26.1).
-
Adjusted operating income increased to
SEK 82m (-3), equivalent to an adjusted operating margin of 7.2 percent (-0.3). -
Reported operating income totaled
SEK 79m (-151). Restructuring costs ofSEK 3m related to the strategic review of the company impacted profit. -
Changes in exchange rates had a negative impact on operating income of
SEK -9m (-8). -
Profit after tax was
SEK 54m (-139). Tax totaledSEK -22m (+24). -
Earnings per share were
SEK 1.11 (-2.95). -
Cash flow from operating activities totaled
SEK 19m (-96). -
The savings programs developed according to plan and reduced expenses by
SEK 27m net, of which the structural programs contributedSEK 55m . Jean-Luc Desire took over as CEO onJune 14, 2021 .-
Håkan Karlsson was elected as the new Chairman of the Board at the AGM on
26 May, 2021 . -
A joint venture has been formed with
FAST Group to produce and sell disc brakes for both new production and the aftermarket, focusing initially onChina . - The financial targets and dividend policy have been updated.
-
The supply chain is strained due to increased raw material and freight costs as well as component shortages. The company has been actively working to mitigate some of the effects and this is expected to have a positive effect from the third quarter. There is great shortage of semiconductors, which will have an impact on some of
Haldex products for at least the second half of 2021.
EVENTS AFTER THE END OF THE QUARTER
Haldex's financing maturing inApril 2022 has been extended after the balance sheet date toApril 2023 - An agreement has been signed with one of the world's largest manufacturers of heavy trucks for our ADB product.
Second quarter | First half of the year | Rolling 12 m | Full year | |||||
Group overview, SEKm | Apr- | Apr- | ∆ | Jan-Jun 2021 | Jan-Jun 2020 | ∆ | 2020 | |
Net sales, SEKm | 1,138 | 875 | 30% | 2,218 | 2,055 | 8% | 4,171 | 4,007 |
Organic growth, % | 42 | -37 | - | 19 | -26 | - | - | -20 |
Operating income, SEKm | 79 | -151 | nm | 221 | -121 | nm | 242 | -100 |
Adjusted operating income, SEKm | 82 | -3 | nm | 197 | 39 | 409% | 321 | 163 |
Operating margin, % | 6.9 | -17.2 | 24.2 | 10.0 | -5.9 | 15.9 | 5.8 | -2.5 |
Adjusted operating margin, % | 7.2 | -0.3 | 7.5 | 8.9 | 1.9 | 7.0 | 7.7 | 4.1 |
Return on capital employed % 1 | 8.3 | -6.4 | 14.7 | 8.3 | -6.4 | 14.7 | 8.3 | -3.8 |
Return on capital employed excluding non-recurring items % 1 | 11.0 | 5.2 | 5.8 | 11.0 | 5.2 | 5.8 | 11.0 | 5.0 |
Profit after tax, SEKm | 54 | -139 | nm | 149 | -136 | nm | -15 | -300 |
Earnings per share, SEK | 1.11 | -2.95 | nm | 3.05 | -3.01 | nm | -0.37 | -6.44 |
Cash flow, operating activities, SEKm | 19 | -96 | 115 | -11 | -139 | 128 | 343 | 215 |
1 Rolling twelve months. The effect of IFRS16 Leases has been excluded. |
Comment from
In mid-June I took over the role of CEO of
STRONG ORGANIC GROWTH
Net sales showed strong improvement, despite continued constraints in the supply chain, and totaled
A strong organic sales growth was reported by Region Americas and
The trailer segment showed strong organic growth, which is a result of our increased focus on the trailer market as well as the vast sales drop last year. The truck segment also noted strong organic growth, mainly due to the large sales decline last year. The aftermarket segment was generally less affected by COVID-19 last year and hence organic sales growth was somewhat smaller in this customer segment than in the other two.
MARGIN PRESSURED BY THE STRAINED SUPPLY CHAIN
Adjusted operating profit totalled
PRODUCT AND OFFERING
The development of our proposition focusing on the trailer segment and aftermarket continues. As well as growing our position as an Air Disc Brake supplier of specific applications addressing both trucks and bus OEMs.
In mid-April we announced the agreement to form a joint venture company with
Our key focus on electrification and our EMB product has proved successful. We are in close dialog with several key OEMs in
I am also pleased to announce that we after the reporting period have closed an agreement with one of the world's largest manufacturer of heavy trucks for our ADB product. The deal is an important milestone to grow in the truck segment besides our excellent position in the trailer market. In particular we would like to mention the strategic importance of an embedded additional agreement, which include to equip a showcase truck with our new EMB product. This breakthrough of introducing our next generation product on the European market strengthens our confidence in our market opportunities and ability to meet new demands on braking systems in connected, electric trucks and trailers.
OUTLOOK
Although the second quarter noted a recovery from the challenging last year, there are still a lot of uncertainties left. During the second quarter, we see increased costs for commodities, semiconductors and freight. From the third quarter onwards, we expect to mitigate large parts of the additional costs in terms of increased material costs by adjusting raw material prices between our suppliers and customers. We estimate that increased freight costs will continue throughout the year. However, there is great uncertainty about these external factors and we are following market developments closely.
In addition to increased costs, there is also a significant lack of access to semiconductors, which will have an impact on some of
We are taking strong measures to improve our supply chain processes and in addition to this, my focus for the coming months will be on performance management, people development, and meeting with customers. Our work on the strategic review is also continuing and I will provide an update during the second half of 2021. I am confident we will see solid results from these efforts and I look forward to great collaborations and an exciting journey ahead.
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