BROMMA, SWEDEN – NCAB Group reported third quarter net sales increased 22% to SEK 536.7 million (US$61.9 million). The increase is a result of the acquisitions of Flatfield and Bare Board Group.
In US dollars, net sales increased 34%. Excluding acquisitions, the company reported net sales down 9% but in line with the previous year when measured in US dollars.
Profit after tax was SEK 31.5 million, down 18.2% year-over-year. Operating profit was SEK 47.2 million, an increase of 2.8%.
Orders increased 15% to SEK 512.3 million. In US dollars, orders increased 24%. Orders gradually improved during the quarter.
For the first nine months of 2020, net sales increased 18% to SEK 1.6 billion. This increase is from acquisitions. Growth in US dollars was also 18%. Excluding acquisitions, sales decreased 3%.
From January to September, profit after tax was SEK 92.3 million, down 4.6% year-over-year. Operating profit was SEK 132.2 million, up 9.3%.
Orders increased 17% to SEK 1.6 billion. In US dollars, orders increased 16%.
The coronavirus pandemic negatively impacted orders and net sales during the third quarter and all of 2020.
“It has now been just over one month since I assumed the role of CEO of NCAB,” said Peter Kruk NCAB Group president and CEO. “It is somewhat of a special situation to take over as CEO of a company at a time when there are limited possibilities to travel and meet with employees, customers and suppliers. Despite these difficulties, I already have a very positive image of NCAB. We have a strong corporate culture and take great responsibility locally, which is an effective approach in a situation such as this. A well-established way of collaborating digitally – both internally and with customers and suppliers – makes up for the difficulties of not being able to meet physically.
“A return to normalization for NCAB commenced during the third quarter after the very unique first half of the year. We reported an unusually large order intake during the first quarter due to customers wishing to secure deliveries when parts of China were closed down as a result of the pandemic. Subsequently, Chinese factories resumed operations during the second quarter, while many countries in which our customers are operational experienced various kinds of lockdowns or restrictions that resulted in reduced order intake for NCAB. NCAB has a strong organization, is well positioned and has great future potential.
“During the first part of the third quarter, order intake remained weak. At the end of the quarter, however, we noted a general positive return toward more normal levels for the inflow of orders. Nordic, which was relatively strong during the first half of the year, reported a somewhat weaker order intake during the quarter, while Europe rebounded. This is particularly true in the UK, where we have seen improvements in the transport sector. In Germany, our market remained strong during the quarter. We also saw a recovery in Southern Europe, which emerged from lockdown during the quarter. Our newly acquired company in the Netherlands is doing very well, and its integration into NCAB has proceeded positively despite being largely conducted digitally.
“In North America, it is positive to see the growth is continuing and profitability is on the rise. The acquisition in the USA that was carried out in April is now in the process of being integrated into NCAB. The fact that we now have manufacturers in Taiwan is appreciated by many customers, and we are working to make them available for all of NCAB’s customers.
“In our East region, Russia had a somewhat weaker quarter, while China reported relatively healthy sales. Order intake in China has declined, however, in part due to a shortage of components at our customers and the impact of US trade tariffs.
“Expenses remained low due to cancelled travel and fewer recruitments and were on par with the second quarter. However, we have conducted many webinars with positive effects and have a high level of participation among customers. We received government grants of approximately SEK 1 million in Italy, France and Spain during the quarter.
“Overall, our sales increased by 22%, and we delivered a strong EBITA, with an EBITA margin of 9.3%.
“The order intake increased month-on-month during the quarter and has normalized in terms of delivery times, which means the order intake for a given quarter indicates the sales in the following quarter. There is uncertainty due to increased spread of infection and new restrictions in several countries. We will follow the developments continuously in order to be able to quickly adapt our activities and costs.
“All in all, my perception is that NCAB has handled the coronavirus pandemic well during the first three quarters of the year, and that NCAB has a strong organization, is well positioned not the least with our strong balance sheet and has great future potential.”
Ed.: SEK 1 = US$0.12
Acquisitions Boost NCAB Group’s Q3 Net Sales, Up 22%
BROMMA, SWEDEN – NCAB Group reported third quarter net sales increased 22% to SEK 536.7 million (US$61.9 million). The increase is a result of the acquisitions of Flatfield and Bare Board Group.
In US dollars, net sales increased 34%. Excluding acquisitions, the company reported net sales down 9% but in line with the previous year when measured in US dollars.
Profit after tax was SEK 31.5 million, down 18.2% year-over-year. Operating profit was SEK 47.2 million, an increase of 2.8%.
Orders increased 15% to SEK 512.3 million. In US dollars, orders increased 24%. Orders gradually improved during the quarter.
For the first nine months of 2020, net sales increased 18% to SEK 1.6 billion. This increase is from acquisitions. Growth in US dollars was also 18%. Excluding acquisitions, sales decreased 3%.
From January to September, profit after tax was SEK 92.3 million, down 4.6% year-over-year. Operating profit was SEK 132.2 million, up 9.3%.
Orders increased 17% to SEK 1.6 billion. In US dollars, orders increased 16%.
The coronavirus pandemic negatively impacted orders and net sales during the third quarter and all of 2020.
“It has now been just over one month since I assumed the role of CEO of NCAB,” said Peter Kruk NCAB Group president and CEO. “It is somewhat of a special situation to take over as CEO of a company at a time when there are limited possibilities to travel and meet with employees, customers and suppliers. Despite these difficulties, I already have a very positive image of NCAB. We have a strong corporate culture and take great responsibility locally, which is an effective approach in a situation such as this. A well-established way of collaborating digitally – both internally and with customers and suppliers – makes up for the difficulties of not being able to meet physically.
“A return to normalization for NCAB commenced during the third quarter after the very unique first half of the year. We reported an unusually large order intake during the first quarter due to customers wishing to secure deliveries when parts of China were closed down as a result of the pandemic. Subsequently, Chinese factories resumed operations during the second quarter, while many countries in which our customers are operational experienced various kinds of lockdowns or restrictions that resulted in reduced order intake for NCAB. NCAB has a strong organization, is well positioned and has great future potential.
“During the first part of the third quarter, order intake remained weak. At the end of the quarter, however, we noted a general positive return toward more normal levels for the inflow of orders. Nordic, which was relatively strong during the first half of the year, reported a somewhat weaker order intake during the quarter, while Europe rebounded. This is particularly true in the UK, where we have seen improvements in the transport sector. In Germany, our market remained strong during the quarter. We also saw a recovery in Southern Europe, which emerged from lockdown during the quarter. Our newly acquired company in the Netherlands is doing very well, and its integration into NCAB has proceeded positively despite being largely conducted digitally.
“In North America, it is positive to see the growth is continuing and profitability is on the rise. The acquisition in the USA that was carried out in April is now in the process of being integrated into NCAB. The fact that we now have manufacturers in Taiwan is appreciated by many customers, and we are working to make them available for all of NCAB’s customers.
“In our East region, Russia had a somewhat weaker quarter, while China reported relatively healthy sales. Order intake in China has declined, however, in part due to a shortage of components at our customers and the impact of US trade tariffs.
“Expenses remained low due to cancelled travel and fewer recruitments and were on par with the second quarter. However, we have conducted many webinars with positive effects and have a high level of participation among customers. We received government grants of approximately SEK 1 million in Italy, France and Spain during the quarter.
“Overall, our sales increased by 22%, and we delivered a strong EBITA, with an EBITA margin of 9.3%.
“The order intake increased month-on-month during the quarter and has normalized in terms of delivery times, which means the order intake for a given quarter indicates the sales in the following quarter. There is uncertainty due to increased spread of infection and new restrictions in several countries. We will follow the developments continuously in order to be able to quickly adapt our activities and costs.
“All in all, my perception is that NCAB has handled the coronavirus pandemic well during the first three quarters of the year, and that NCAB has a strong organization, is well positioned not the least with our strong balance sheet and has great future potential.”
NCAB, Q3, 2020
Ed.: SEK 1 = US$0.12
