SECOND QUARTER - HIGH LEVEL OF ACTIVITY AND CONTINUED GROWTH

On the whole, we can summarise a favourable quarter with a high level of activity and continued growth. Overall, sales increased by 5 percent, 2 percent of which was organic. Our EBITA-margin was stable at a high level and the cashflow remained strong over the period. The high pace of acquisitions continued over the quarter and we strengthened our operations with three more acquisitions, while also signing agreements to acquire two more companies. Our well-diversified operations with entrepreneurial niche companies in strong positions is again demonstrating its strength, continuing to generate profitable growth in a partly challenging market. 

MARKET TREND

For the Group as a whole, the market situation was stable at a high level, while we saw clear variations between and within the segments. Demand was strong for infrastructure products for national and regional grids, as well as for products and solutions for manufacturing companies in the defence industry and marine customers. On the whole, the business situation was stable within the medical technology, electronics, engineering and process industries. Demand in special vehicles, mainly construction equipment, weakened over the period while the challenging business situation in building and installation persisted. We continued to deliver on our order backlog from the sawmill industry, while the order intake for new projects remained at low levels. From a geographical perspective, the market situation was stable in Sweden and favourable in Norway and Denmark, while it was weak in Finland. In our principal markets outside the Nordic region the overall business situation was stable, with the DACH region being weak while the Benelux region was strong. 

ACQUISITIONS 

According to plan, we are continuing to acquire profitable and sustainable companies that complement and strengthen our niche strategies. To date during the financial year, we have signed agreements to acquire nine companies with combined annual sales of about SEK 1,250 million. The acquisitions conducted in the quarter all serve as clear evidence of how we methodically strengthen our positions within strategically selected niches and do not see geography as a limitation as long as the company concerned is a high performer, offering a strategic and cultural fit. Overall, we continue to view the acquisition market positively and, given our strong financial position and well-filled pipeline of well-run companies with high value-add, we expect to continue conducting acquisitions according to plan, both in the Nordic region and in other strategically selected markets.