Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bulten AB (LTS:0P49, Financial) achieved an adjusted EBIT margin of 6.2% in Q1 2025, showing an improvement from previous years.
- The company has successfully increased its sales in other industries by 16% compared to last year's rolling 12 months, indicating diversification beyond the automotive sector.
- Bulten AB's strategy to produce locally minimizes exposure to tariffs, reducing potential risks from international trade tensions.
- The company's order intake in Q1 2025 was slightly better than Q1 2024, suggesting stable demand and a positive outlook for upcoming quarters.
- Bulten AB's working capital management is effective, with levels at 17%, which is below their guidance range of 20% to 25%.
Negative Points
- Sales volumes for Q1 2025 were down 6.6% compared to the same quarter last year, reflecting a challenging market environment.
- The company faced an anti-dumping toll, which negatively impacted financial results and is currently being contested in court.
- Bulten AB's EBIT did not meet the 8% target due to one-off events and market challenges, affecting profitability goals.
- The cash flow for Q1 2025 was lower than the same period last year, ending at a positive SEK12 million, indicating tighter liquidity.
- The company had to reduce its workforce in the US by about a third to improve profitability, highlighting ongoing cost pressures.
Q & A Highlights
Q: Do you expect the second quarter to follow the usual seasonal pattern, or are there any differences this year due to tariffs?
A: Our order intake in Q1 is slightly better than last year, and we don't see any major drops in volumes. We remain hopeful for the next couple of quarters. - Axel Berntsson, President and CEO
Q: Will you be changing the structure or level of your targets in the upcoming strategy review?
A: While the levels will likely be different, we might also use a few different metrics. We will provide more details once the numbers are finalized. - Axel Berntsson, President and CEO
Q: Are the negative figures in other operating expenses related to the anti-dumping duties?
A: Yes, 10 out of the 17 is related to the anti-dumping duties. - Anna Akerblad, CFO
Q: Will you start representing the auto segment independently due to its higher profitability?
A: It's too early to do that. If our strategy leads to a reorganization, we might evaluate publishing more details. - Axel Berntsson, President and CEO
Q: Do you still import from China in a similar fashion, which has been challenged now?
A: No, we do not. This was a temporary measure due to production issues in Sweden, which have been resolved. - Axel Berntsson, President and CEO
Q: Could you elaborate on the sectors, regions, and products you focus on in other industries?
A: Most of our business in other industries is in Asia, focusing on consumer electronics and medical devices, which are profitable and growing sectors for us. - Axel Berntsson, President and CEO
Q: When can we expect new targets to be communicated for 2025?
A: We need approval from our Board before announcing new targets, so I cannot provide a specific date yet. - Axel Berntsson, President and CEO
Q: Would you consider setting a target to reach 30% of sales in other industries for balanced growth?
A: Yes, I would consider that. It makes sense from what we can see right now. - Axel Berntsson, President and CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
