INTERIM REPORT Q2 2023/2024

DEVELOPMENT IN THE BUSINESS AREAS

AUTOMATION
Net sales in Automation increased in the second quarter by 6 percent to SEK 862 million (810) and EBITA increased by 9 percent to SEK 114 million (105). Net sales during the period increased by 12 percent to SEK 1,759 million (1,571) and EBITA increased by 14 percent to SEK 223 million (196). 

Market
For the Automation business area as a whole, the business situation was stable in the second quarter. In medical technology, demand decreased against very tough comparison figures, while the market situation was strong in defence and stable at a high level in the process and mechanical industries. A favourable product mix resulted in a higher operating margin.

ELECTRIFICATION
Net sales in Electrification increased in the second quarter by 7 percent to SEK 1,029 million (958) and EBITA increased by 8 percent to SEK 137 million (126). Net sales during the period increased by 9 percent to SEK 2,053 million (1,887) and EBITA increased by 11 percent to SEK 267 million (240). 

Market
The Electrification business area had a stable business situation in the second quarter with some variation in demand. The market situation was stable in wind power but diminished in data and telecom as well as in building and installation. Demand decreased in medical technology and electronics against tough comparison figures, while it was favourable for companies active in the defence and special vehicles segments, as well as for solutions in electronics production. 

ENERGY
Net sales in Energy increased in the second quarter by 3 percent to SEK 1,297 million (1,256) and EBITA increased by 8 percent to SEK 172 million (159). Net sales during the period increased by 9 percent to SEK 2,725 million (2,507) and EBITA increased by 17 percent to SEK 370 million (315). 

Market
The Energy business area enjoyed a favourable market position in its key customer segments during the quarter. Organic sales were affected negatively by a decline in volume business. Demand for infrastructure products for the conversion and expansion of national and regional grids was highly favourable in a continued strong market, while sales were stable at high levels. The business situation was positive for the units active in niche products for electric power distribution, in the manufacturing industry, as well as in building and installation, while it remained weak in wind power and the expansion of fiber optic networks. A favourable product mix brought a higher operating margin. The revaluation of contingent purchase considerations affected profit for the quarter negatively by about SEK 7 million.

INDUSTRIAL SOLUTIONS
Net sales in Industrial Solutions increased in the second quarter by 18 percent to SEK 835 million (709) and EBITA increased by 69 percent to SEK 194 million (115). Net sales during the period increased by 17 percent to SEK 1,758 million (1,497) and EBITA increased by 42 percent to SEK 351 million (247). 

Market
The Industrial Solutions business area enjoyed a favourable business situation during the quarter. Sales were very good for the companies exposed to the forestry and sawmill industry and the completion of a large number of projects affected the operating margin positively. Demand for new projects remained weak. The market situation in special vehicles was variable but, in general, stable, as it was in the mechanical industry. The business area was affected positively by an unrealised exchange rate gain of about SEK 25 million over the quarter. 

PROCESS TECHNOLOGY
Net sales in Process Technology increased in the second quarter by 25 percent to SEK 863 million (690) and EBITA increased by 37 percent to SEK 124 million (91). Net sales during the period increased by 26 percent to SEK 1,687 million (1,344) and EBITA increased by 33 percent to SEK 236 million (178). 

Market
For the Process Technology business area in total, the business situation was favourable in the second quarter. The market situation was strong in medical technology and energy, as well as in the marine segment. In the mechanical industry, demand decreased from a high level, while it was stable in the forest and process industry, where demand in the chemical industry, as well as in after-market components, solutions and service, offset a decline in forest. The revaluation of contingent purchase considerations affected profit for the quarter positively by about SEK 5 million.

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