Bufab AB reported “strong sales and increased profit” in 2017.

Sales during the fourth quarter rose 18% to SEK 828 million (US$102.3 million), which included organic growth of 14%. Operating profit gained 31% to SEK 72 million, corresponding to an operating margin of 8.7%.

“The gross margin remained under pressure from higher raw material prices and was lower than in 2016,” stated CEO Jörgen Rosengren. “However, the margin recovered somewhat from the third quarter, mainly as a result of the price increases we implemented. Our ambition is to continue with these in 2018.”

Q4 order intake increased 16% and “was higher than net sales.”

Full-year sales climbed 12% to SEK 3.2 billion, of which 8% was organic. Operating profit improved 12.3% to SEK 311 million, corresponding to an operating margin of 9.7%.

Order intake increased 13% during 2017.

“A key factor was the favorable development of industrial demand during the year,” Rosengren explained.

“We captured market shares in nearly all markets – a result of a systematic focus on the sales organization over many years.”

During 2017, Bufab made two acquisitions.

In May, the company acquired Thunderbolts Group Ltd. for SEK 25 million. Founded in 1991, Thunderbolts supplies to the construction, manufacturing, marine and healthcare industries in southern England. Thunderbolts has 19 employees and SEK 32 million in annual revenue

In December, Bufab acquired Kian Soon Mechanical Components Pte Ltd. for SEK 136 million. Founded in 1977, Singapore-based Kian Soon distributes products in Southeast Asia. Kian Soon has 64 employees and SEK 105 million in annual revenue.

Bufab ended 2017 with 1,119 employees. Web: Bufab.com