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Indutrade AB, Sweden
COMPANY PROFILE
Indutrade AB, Sweden Profile
Indutrade AB specialises in industrial components, systems and services. It is comprised of 160 companies in 23 countries and operates four business segments - Engineering & Equipment, Flow Technology, Industrial Components and Special Products. The company’s pumps operations are mainly within its Engineering & Equipment and Flow Technology segments. Analysis
Indutrade posted net sales for fiscal 2011 of SEK7994 million, up 19% on the year earlier. Comparing like-for-like sales, revenue was up 10%, with the overall result also benefiting from a 12% contribution from acquisitions and overcoming a 3% downturn from unfavourable currency movements. All four of the company’s business segments performed solidly. The Engineering & Equipment segment saw net sales climb 15% to SEK1627 million. Flow Technology enjoyed a 16% increase in sales to SEK2017 million, with pumps contributing 8% of the total. Indutrade’s operating profit before amortisation of intangible assets (EBITA) was SEK917 million for the year, up 30% on a year earlier. Engineering & Equipment EBITA rose 28% to SEK128 million with an EBITA margin of 7.9% (2010: 7.1%). For Flow Technology EBITA increased 48% to SEK229 million, corresponding to an EBITA margin of 11.4% (2010: 8.9%). Indutrade’s net profit for the year rose 33% on the year earlier to reach SEK540 million. The company said that favourable like-for-like growth combined with limited cost increases, a higher gross margin for the year as a whole and good performance for acquired units contributed to the higher earnings and improved EBITA margin.
COMMENT Indutrade is continuing to pursue a growth strategy based on acquisition and decentralisation. The company acquired 11 firms in 2011, including Torell Pump AB. With annual sales of SEK40 million, Torell has been added to the Group’s Flow Technology business segment. Indutrade’s acquisition policy continues to be tied to its strategy of decentralisation, which it refers to as a ‘fundamental governance principle’. The Group believes that this twinned approach brings to the organisation entrepreneurship and technical niche expertise combined with a well-balanced spread of risk with respect to customers, products, suppliers, industries and geographic markets. Indutrade says the only thing that it co-ordinates for its constituent companies is financing, which is handled by the parent company for the entire Group, and that the key to success for each firm rests with its own management. ■
Key Figures (SEK million) Indutrade AB 2011
2010
Year ended 31.12 2009
2008
2007
Net Sales Of Which: Engineering & Equipment Flow Technology
7994
6745
6271
6778
5673
1627 2017
1409 1743
1569 1689
1900 1712
1689 1474
Cost of Goods Sold
5268
4480
4207
4520
3826
Gross Profit
2726
2265
2064
2258
1847
EBITA Of Which: Engineering & Equipment Flow Technology
917
703
594
820
650
128 229
100 155
83 186
189 185
176 145
Operating Profit
822
614
525
760
609
Net Profit
540
405
341
510
419
Contact Details
Chair: CEO and President: Address:
August 2012
Bengt Kjell Johnny Alvarsson Raseborgsgatan 9 Box 6044 SE-164 06 Kista Sweden
Tel: +46 8 703 03 00 Web: www.indutrade.se
Pump Industry Analyst
5
Indutrade AB, Sweden Profile
Indutrade AB specialises in industrial components, systems and services. It is comprised of 160 companies in 23 countries and operates four business segments - Engineering & Equipment, Flow Technology, Industrial Components and Special Products. The company’s pumps operations are mainly within its Engineering & Equipment and Flow Technology segments. Analysis
Indutrade posted net sales for fiscal 2011 of SEK7994 million, up 19% on the year earlier. Comparing like-for-like sales, revenue was up 10%, with the overall result also benefiting from a 12% contribution from acquisitions and overcoming a 3% downturn from unfavourable currency movements. All four of the company’s business segments performed solidly. The Engineering & Equipment segment saw net sales climb 15% to SEK1627 million. Flow Technology enjoyed a 16% increase in sales to SEK2017 million, with pumps contributing 8% of the total. Indutrade’s operating profit before amortisation of intangible assets (EBITA) was SEK917 million for the year, up 30% on a year earlier. Engineering & Equipment EBITA rose 28% to SEK128 million with an EBITA margin of 7.9% (2010: 7.1%). For Flow Technology EBITA increased 48% to SEK229 million, corresponding to an EBITA margin of 11.4% (2010: 8.9%). Indutrade’s net profit for the year rose 33% on the year earlier to reach SEK540 million. The company said that favourable like-for-like growth combined with limited cost increases, a higher gross margin for the year as a whole and good performance for acquired units contributed to the higher earnings and improved EBITA margin.
COMMENT Indutrade is continuing to pursue a growth strategy based on acquisition and decentralisation. The company acquired 11 firms in 2011, including Torell Pump AB. With annual sales of SEK40 million, Torell has been added to the Group’s Flow Technology business segment. Indutrade’s acquisition policy continues to be tied to its strategy of decentralisation, which it refers to as a ‘fundamental governance principle’. The Group believes that this twinned approach brings to the organisation entrepreneurship and technical niche expertise combined with a well-balanced spread of risk with respect to customers, products, suppliers, industries and geographic markets. Indutrade says the only thing that it co-ordinates for its constituent companies is financing, which is handled by the parent company for the entire Group, and that the key to success for each firm rests with its own management. ■
Key Figures (SEK million) Indutrade AB 2011
2010
Year ended 31.12 2009
2008
2007
Net Sales Of Which: Engineering & Equipment Flow Technology
7994
6745
6271
6778
5673
1627 2017
1409 1743
1569 1689
1900 1712
1689 1474
Cost of Goods Sold
5268
4480
4207
4520
3826
Gross Profit
2726
2265
2064
2258
1847
EBITA Of Which: Engineering & Equipment Flow Technology
917
703
594
820
650
128 229
100 155
83 186
189 185
176 145
Operating Profit
822
614
525
760
609
Net Profit
540
405
341
510
419
Contact Details
Chair: CEO and President: Address:
August 2012
Bengt Kjell Johnny Alvarsson Raseborgsgatan 9 Box 6044 SE-164 06 Kista Sweden
Tel: +46 8 703 03 00 Web: www.indutrade.se
Pump Industry Analyst
5