Kista, Sweden (PRWEB) February 13, 2009
Despite the harsh economic situation in the world, net sales rose 19% during 2008, to SEK 6,778 million (5,673). For comparable units the increase was 5%. Especially pleasing was that the fourth quarter showed a good increase in revenue, as can be read in Indutrade's year-end report 2008. http://www.indutrade.se/rapporter____241.aspx
Operating profit before amortisation of intangible assets (EBITA) rose 26% to SEK 820 million (650), and the EBITA margin was 12.1% (11.5%). The result is the best in Indutrades history.
Net sales rose 18% during the fourth quarter, to SEK 1,829 million (1,549). For comparable units the increase was 6%. Earnings per share were SEK 12.75 (10.48) for the period and the Board proposes a dividend of SEK 6.40 per share (5.25).
All business areas showed favorable growth for the year. Special Products and Flow Technology were the business areas with the strongest growth, with increases in net sales of 37% and 16%, respectively, mainly as an effect of acquired growth, but also as a result of stable organic growth.
According to Johnny Alvarsson a strong contributing factor is the strategic choices, including an explicit focus on selected market segments, combined with clear and decentralized performance and operating responsibilities. Indutrade creates value for its customers by structuring the value chain and increasing the efficiency of its customers' use of technological components and systems. For the Group's suppliers, value creates through the offering of an efficient sales organisation with high technical expertise and solidly developed customer relations.
In 2008 Indutrade acquired nine companies of which two in the area of med-technology. The largest acquisition, Flintec Group, manufactures and markets measurement technology products. Flintec has net sales of approximately SEK 275 million and employs some 1,000 people, most of whom are at their two manufacturing units in Sri Lanka.
Indutrade has developed a tried-and-tested method for researching, planning and implementing corporate acquisitions. Over time, the Group has built up an extensive network of customers, suppliers and other players. Indutrade's acquisition strategy is based on the following guidelines:
- Companies with product areas in niches in which Indutrade has expertise
- Leading companies with a high technology content in their respective niches
- Primarily companies which have been proven to be profitable
- Companies whose suppliers' long-term strategy is well in line with Indutrade's strategy
- Companies whose customers have recurring needs and capital- intensive production
- Companies whose key personnel are motivated to continue to manage the company even after the acquisition
Indutrade in brief
Indutrade markets and sells components, systems and services with a high-tech content to industrial customers in selected niches. The Group creates value for its customers by structuring the value chain and increasing the efficiency of its customers' use of technological components and systems. For the Group's suppliers, value is created through the offering of an efficient sales organisation with high technical expertise and solidly developed customer relations. Indutrade's business is distinguished by the following factors, among others:
- High-tech products for recurring needs
- Growth through a structured and tried-and-tested acquisition strategy
- A decentralised organisation characterised by an entrepreneurial spirit
The Group is structured into four business areas: Engineering & Equipment, Flow Technology, Industrial Components and Special Products. Indutrade is listed on the OMX Nordic Exchange in Stockholm, ticker code: INDT.