GÖTEBORG, Sweden, Feb 02, 2017 /PRNewswire/ --
Comments on the fourth quarter by Gunnebo's President and CEO, Henrik Lange
"The fourth quarter was a strong end to the year with a turnover of MSEK 1,776, which is an increase of 6%. Organically, sales increased by 3% and the operating margin ex-cluding non-recurring items amounted to 9.7%.
For the full year, we reported an operating margin excluding non-recurring items of 7.2%, which means we have met our financial target of a 7% operating margin.
Development of our Business
Region EMEA showed organic sales growth of 2% during the fourth quarter. Sales were strong primarily in Southern Europe, Central Europe and Eastern Europe whereas they were weaker in France and the UK.
Region Asia-Pacific continued to show organic growth also during the fourth quarter. Sales were strong in South Korea, mainly due to a larger installation within Entrance Security, and in India where the ATM business continued to perform well.
Region Americas had organic sales growth of 4% during the fourth quarter. In both North and South America sales developed positively.
The positive trend in Entrance Security's sales continued. The sales in mass transit continued to develop well, with deliveries of several orders for metro systems in both Asia and Europe.
In Cash Management, sales in Europe of the closed cash management system, SafePay, continued positively during the period and several major customers placed new orders. In North America we received several large orders for airtube systems from American banks.
In Safes & Vaults, both sales in the ATM and certified safe segments developed positively.
In Electronic Security sales during the quarter were below last year, due to weaker sales in Europe".
Q4 Financial Results
For the fourth quarter, we reported organic sales growth of 3%, as well as an operating profit excluding non-recurring items of MSEK 172, giving an operating margin of 9.7%. With a strong fourth quarter, it is a milestone to report an operating margin of 7.2% for the year. With a clear strategy and structure, we are now equipped to continue executing our strategy for profitable growth.
Fourth Quarter 2016
- Net sales amounted to MSEK 1,776 (1,677), organically they increased by 3%.
- Operating profit amounted to MSEK 142 (121) and the operating margin increased to 8.0% (7.2).
- Operating profit excluding items of non-recurring items amounted to MSEK 172 (149), corresponding to an operating margin of 9.7% (8.9).
- Net profit increased to MSEK 96 (80).
- Earnings per share increased to SEK 1.25 (1.05).
- The free cash flow amounted to MSEK 107 (218).
Full Year 2016
- Net sales amounted to MSEK 6,088 (6,052), organically they increased by 1%.
- Operating profit increased to MSEK 366 (320) and the operating margin increased to 6.0% (5.3%).
- Operating profit excluding items of non-recurring items increades to MSEK 438 (397), corresponding to an operating margin of 7.2% (6.6%).
- Net profit increased to MSEK 209 (168).
- Earnings per share improved to SEK 2.71 (2.18).
- The free cash flow improved to MSEK 159 (56).
- The Board proposes a dividend of SEK 1.20 (SEK 1.00) per share.
Full report is attached to this press release.
Invitation to Telephone Conference on February 2, 09.00 (CET)
To participate in the conference, please sign up using the link below:
Once registered, you will receive a phone number and a password.
08.55 Call in to the conference
09.00 Review of the interim report by Gunnebo's President and CEO, Henrik Lange and CFO Susanne Larsson
09.20 Questions and answers
09.30 Closing of telephone conference
The presentation will be available 30 minutes prior to the telephone conference on www.gunnebogroup.com. Attending from Gunnebo AB are President and CEO Henrik Lange, CFO Susanne Larsson and SVP Marketing & Communications Karin Wallström Nordén.
A recording of the telephone conference will be available on www.gunnebogroup.com from late afternoon February 2.
GUNNEBO AB (publ)
For more information, please contact:
President & CEO Gunnebo AB,
CFO Gunnebo AB,
Karin Wallström Nordén,
SVP Marketing & Communications Gunnebo AB,
This information is information that Gunnebo AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.01 CET on February 2, 2017.
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