Brief: Bulten Q2 EBIT Down At SEK 21 Mln

Bulten AB

10/07/2019 07:35

July 10 (Reuters) - Bulten AB  BULTEN.ST :
    * BULTEN'S Q2 REPORT 2019
    * Q2 NET SALES AMOUNTED TO SEK 781 (810) MILLION, A DECREASE
OF
-3.5% ON SAME PERIOD LAST YEAR.
    * Q2 OPERATING EARNINGS (EBIT) TOTALED SEK 21 (57) MILLION,
EQUATING TO AN OPERATING MARGIN OF 2.7% (7.1).
    * Q2 EARNINGS AFTER TAX AMOUNTED TO SEK 14 (40) MILLION.
    * SAYS Q2 SAW A CONTINUATION OF DECLINE ON CAR MARKET WHICH
BEGAN
IN SECOND HALF OF 2018, AND MARKET SITUATION IS REFLECTED IN
BULTEN'S LOWER VOLUMES
    * EARNINGS WAS AFFECTED NEGATIVELY BY A LOWER RATE OF
PRODUCTION
IN ORDER TO BALANCE INVENTORY LEVELS TO DEMAND, BUT ALSO DUE TO
LOWER SALES, PRIMARILY TOWARD END OF QUARTER
    * WE ARE NOT SATISFIED WITH DEVELOPMENT DURING QUARTER, BUT
ADJUSTMENT OF PRODUCTION RATE WAS NECESSARY IN PREVAILING MARKET
CLIMATE
    * UNDER-ABSORPTION HAD A NEGATIVE IMPACT ON EARNINGS OF
APPROXIMATELY SEK 25 MILLION DURING Q2
    * LOWER PRODUCTION RATE HAS BROUGHT REDUCTION IN INVENTORIES
ACCORDING TO PLAN, BUT ALSO RESULTED IN A LOWER UTILIZATION OF
PRODUCTION UNITS' CAPACITY AND THUS UNDER-ABSORPTION OF FIXED
COSTS
    * PRODUCTION RATE WILL REMAIN LOWER AT START OF Q3
    * AT PRESENT, DEMAND REMAINS LOWER THAN LAST YEAR, AND
VOLUMES
RELATED TO NEW CONTRACTS HAVE RAMPED UP MORE SLOWLY THAN
ANTICIPATED

Source text for Eikon:  ID:nWkr8CrFXn 
Further company coverage:  BULTEN.ST 

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