PDF Document 4.74 MB - Investment AB Latour

INDUSTRIAL OPERATIONSSPECMA GROUPImportant events in 2012• Net sales and profitability wereaffected negatively during the secondhalf of the year by the weakeningeconomy, particularly in the maritimesector and contractor machines.• Measures to further rationalize productionhave been initiated with aplanned 25 percent reduction of productionsites in the Nordic region.• Continued international expansionincluding the establishment ofhydraulic system assembly in Chinaand expansion in a new plant inPoland.• The acquisition of Norlub Scandinaviaestablishes Specma Group as a supplierof central lubrication systems onthe after sales market in Sweden andto large OEM customers around theworld.Goal achievement – primary factorsTo sum it up 2012 was a disappointment.Despite positive sales developmentsduring the first half of the yearSpecma Group did not live up to expectationsconcerning growth and profitabilitydue to a dramatic slowdown inthe economy during the second half.The most significant drop in demandwas from marine and contractormachine customers.The business area delivered a slightlypositive result before extraordinary coststaken during the year. These are connectedto the restructuring programlaunched in the fourth quarter andwhich will be completed during the firsthalf of 2013.Strategy for expansion andimproved profitabilityDespite the result for 2012 SpecmaGroup has the prerequisites to be profitableand grow according to our goals.This will take place through acquiredand organic growth, and structuralrationalizations such as:• Supplementing our existing rangewith closely associated productsand further developing system solutionsin areas where an increase indemand is anticipated in the future.• Growth on existing markets throughstronger sales corps and expansionon new markets by, for example,following existing customers in theirinternationalization process.• Closer cooperation with strategicsuppliers in order to tie up lesscapital and advance the exchange ofknow-how.• Rationalize the production organizationby reducing the number of unitsin the Nordic region and intensifyingthe move to lost-cost facilities inPoland and China.Specma Group – global marketSpecma Group conducts businessoperations in Europe, Asia and NorthINTERNATIONAL EXPANSIONSpecma Group follows its large international customers outinto the world to where they have manufacturing plants. Theunits in Shanghai in China, San Antonio in the US, Curitibain Brazil and Stargard in Poland are examples of this.NET SALES AND OPERATING PROFITSEK mSEK m2,0002001501,5001001,000500500-500-1002008 2009 2010 2011 2012Net salesOperating resultDISTRIBUTION OF NET SALES PERBRANDSystemDivision22 %ComponentDivision25 %OEMDivision53 %NET SALES AND PROFITLatour´sminimum(SEK m) 2012 2011 2010 2009 2008 goalNet sales 1,198 1,381 1,065 1,045 1,658 >10 %(of which export) 417 444 343 282 591Operating profit –9 1) 79 29 –64 121Operating capital 2) 596 574 541 678 712Operating margin, % –0.7 5.7 2.7 –6.1 7.3 >10Return on operating capital, % –1.5 13.7 5.4 –10.4 17.0 >20Investments 18 24 25 34 36No. of employees 742 692 600 788 9541)After restructuring costs2)AveragePROPORTION OF THE GROUP NETASSET VALUE, OPERATING PROFITAND NET SALES3 % -2 %18 %Proportion of Proportion of Proportion ofGroup net Group Groupasset value operating profi t net sales30 LATOUR ANNUAL REPORT 2012