5/2/2012 10:44:00 AM
News Briefs
FinnvedenBulten Investing in Russia Automotive Market
FinnvedenBulten signed an agreement with Russia-based GAZ Group to bolster FinnvedenBulten’s presence in the Russian automotive market.
FinnvedenBulten intends to invest approximately EUR 6.6 million and receive a 63% ownership share in a new joint venture company that will supply fasteners to automakers in Russia.
“The automotive industry has expressed great interest in the company’s establishment in Russia,” stated CEO Johan Westman. “The establishment is an important step in our strategy for expansion on growth markets.”
The news comes on the heels of organic first-quarter growth on a weaker Western European market, along with good Q1 cash flow but lower operating margin. FinnvedenBulten reported organic sales growth of 1.4% to SEK 807 million, while earnings totaled SEK 40 million, delivering an operating margin of 5%.
First-quarter earnings were hampered by disturbances in production during the first two months of the year, combined with extra costs for the start-up of new customer projects.
After-tax profit reached SEK 30 million. Order bookings rose 3.1% to SEK 865 million, while cash flow was SEK 50 million.
Earnings per share totaled SEK 1.42.
Finnveden’s Metal Structures division was burdened by extra start-up and operating costs for new customer projects. ©2012 GlobalFastenerNews.com
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