SKÅNES FAGERHULT, Sweden--(BUSINESS WIRE)--Regulatory News:
Concentric AB (STO:COIC):
Full Year 2011: Annual results are best on record since business formed in 2008
- Sales increased by 16% to MSEK 2,283 (1,977) during the full year 2011 compared to the full year 2010. In constant currencies, sales increased by 25% year on year, reflecting strong market demand across all end sectors and regions for the full year 2011.
- Earnings before interest and taxation (“EBIT” or “Operating Income”) and EBIT margin amounted to MSEK 281 (109) and 12.3% (5.5) respectively. One-time costs totalling MSEK 24 associated with the de-merger were included in the first half result. Adjusting for these costs, the EBIT and EBIT margin was MSEK 305 and 13.4%.
- Earnings after tax amounted to MSEK 176 (35). Earnings per share amounted to SEK 3.98 (0.79). After adjusting for the post-tax impact of one-time de-merger costs, the earnings per share was SEK 4.38.
- Cash flow from operating activities remained strong for the full year, amounting to MSEK 227 (204).
- The Group’s net debt was MSEK 114 (312), a year-on-year reduction of MSEK 198 derived primarily from operating cash flows.
- Due to the Group’s strong earnings and financial position, the Board of Directors intend to propose to the shareholders at the Annual General Meeting a dividend of SEK 2.00 per share for the 2011 fiscal year, corresponding to around 50% of earnings per share.
Fourth quarter 2011: Sustained sales and margins with very strong cash flow
- Sales increased by 11% to MSEK 577 (521) during the fourth quarter 2011 compared to the same quarter 2010. In constant currencies, sales increased by 12% compared with the corresponding period in the preceding year.
- The Group’s average sales per working day in the fourth quarter was sustained from the third quarter, with the rise in the Americas offsetting the slightly lower activity experienced in Europe and the Rest of the World (“Europe & RoW”).
- EBIT and EBIT margin for the fourth quarter amounted to MSEK 80 (53) and 13.9% (10.2) respectively.
- Earnings after tax amounted to MSEK 60 (49). Earnings per share amounted to SEK 1.35 (1.09).
- Cash flow from operating activities was very strong in the quarter, amounting to MSEK 105 (65).
President and CEO David Woolley comments on the fourth quarter 2011:
“Concentric delivered strong results during the fourth quarter of 2011. The robust market demand from the first nine months was largely sustained. The strong sales and operating performance have both contributed to maintaining the EBIT margin at 13.9%.
The Group maintains robust working capital disciplines which generated an operating cash flow in the fourth quarter of SEK 105 million.
Orders received during the fourth quarter indicate that the Group’s underlying sales activity will be sustained into the first quarter of 2012, with a continuing trend of stronger demand in North America compared to Europe.
We firmly believe that our geographical spread and four distinct end-customer segments, together with the flexibility we have in our operations through our Business Excellence program, make Concentric very well positioned to tackle any challenges in 2012.
We continue to see great opportunities for long-term growth by providing value to our customers through our leading technology addressing the key drivers in our market niches, such as the forthcoming changes in emissions legislation and increased focus on reducing fuel consumption.”
Key business events – full year 2011
- The positive trend in Concentric’s end market segments and regions experienced year on year in the first nine months of the year continued into the fourth quarter of 2011. Inventory replenishment has been completed. Sales for the full year 2011 were supported by a pre-buy from the introduction of new off-highway emissions programs in North America and Europe.
- Hire fleets replacing aging construction machinery overdue in the replacement cycle and increasing demand in the US heavy truck sector have both helped to drive demand during the full year 2011.
- Market share growth experienced in the first nine months of the year for both India and China continued into the fourth quarter of 2011.
- During 2011, the Group has been successful with passing through raw material increases to its customers through existing material escalator agreements.
- A number of initiatives were successfully launched in the second quarter to increase capacity, both internally and externally, and additional supplier capacity has supported a catch up in order backlog and further sales growth.
- New financing agreements were put in place during the first half of 2011.
- The reorganization of Haldex was completed and Concentric AB became an independently listed company on the NASDAQ OMX on June 16th.
- Advisor costs associated with the de-merger totalling MSEK 17 were charged in the first half 2011. These costs consisted mainly of expenses incurred in conjunction with tax advisory services and accounting, legal expenses and other listing costs. In addition, double corporate costs of MSEK 7 were also absorbed in the first half 2011 prior to the separation.
- David Woolley, previously the regional head of Europe & RoW, was appointed the new CEO of Concentric on 1 August 2011.
- Wim Goossens was appointed as regional head of Europe & RoW on 1 December 2011.
- Concentric received its first order for its premium variable flow oil pump from a global truck manufacturer during the fourth quarter of 2011.
- Alfdex, a 50/50 joint venture between Alfa Laval and Concentric, signed an exclusive supplier agreement with one of the world’s largest producer of heavy trucks. The agreement to supply Alfdex Oil Mist Separators is valid until 2017, with a total estimated value of at least SEK 500 million.
Corporate Registration Number 556828-4995
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