Brief: Gränges Q1 AdjUsted Operating Profit Up At SEK 357 Mln

Granges AB

21/04/2022 06:44

April 21 (Reuters) - Granges AB  GRANG.ST :
    * GRÄNGES’ INTERIM REPORT JANUARY–MARCH 2022
    * Q1 SALES VOLUME 126.7 KTONNES VERSUS 126.7 KTONNES YEAR
AGO
    * Q1 NET SALES SEK 6,080 MILLION VERSUS SEK 4,043 MILLION
YEAR AGO
    * AT END OF 2021, WE STARTED PROJECT NAVIGATE, WHICH WILL
SET A
DIRECTION FOR GRÄNGES GOING FORWARD. WORK IS GOING WELL AND WE
PLAN TO BE ABLE TO INFORM ABOUT RESULTS IN SUMMER OF 2022
    * Q1 ADJUSTED OPERATING PROFIT SEK 357 MILLION VERSUS SEK
342
MILLION YEAR AGO
    * WE INTEND TO CONTINUE TO PASS ON COST INCREASES TO
CUSTOMERS
    * WE PLAN TO GRADUALLY RAMP UP PRODUCTION VOLUME OF OUR NEW
FACILITIES DURING YEAR
    * Q1 PROFIT FOR PERIOD SEK 261 MILLION VERSUS SEK 239
MILLION YEAR
AGO
    * AT PRESENT, WE EXPECT THAT SALES VOLUME IN Q2 WILL BE
LOWER THAN
IN STRONG Q2 OF 2021
    * ALTHOUGH MARKET DEMAND IS ANTICIPATED TO SUPPORT SIMILAR
SALES
VOLUME AS IN Q2 OF 2021, WE EXPECT SALES VOLUME IN ASIA TO BE
NEGATIVELY IMPACTED IN PROPORTION TO DURATION OF LOCKDOWN IN
SHANGHAI
    * IT ALREADY SEEMS LIKELY THAT WE WILL SEE SIGNIFICANT
EFFECTS ON
INDUSTRY IN CHINA AND GLOBALLY DURING Q2
    * Q1 NET DEBT INCREASED TO SEK 4,991 MILLION AT 31 MARCH
2022 (SEK
3,643 MILLION AT 31 DECEMBER 2021
    * WE ALSO NEED TO BE PREPARED FOR FURTHER SUBSTANTIAL COST
INCREASES
    * WAR IN UKRAINE AFFECTS GRÄNGES AS IT DOES ALL COMPANIES
WITH
OPERATIONS IN EUROPE
    * DEMAND IN AUTOMOTIVE INDUSTRY WAS WEAK DURING QUARTER, AND
OUR
SALES TO THAT MARKET WERE ALSO HIT BY DISRUPTIONS IN CHINA

Source text for Eikon:  ID:nMFN5JK14Z 
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