A good start to 2017/2018
The first quarter of the year produced good growth with a retained operating margin, even in comparison with a strong quarter in the preceding year. The 4 percent organic growth in sales generated good profit growth, and the contribution made by our completed acquisitions fulfilled expectations.
Addtech enjoyed good demand, and the economy in the markets where we operate remains positive. Sales of production components to manufacturing companies improved, and the largest growth in demand comes from manufacturers of special vehicles in segments such as forklift trucks, mining, the forest industry and contracting machinery. Other customer segments such as machinery manufacture, medical technology, wind power and electronics experienced a favourable business climate. The market for products to customers in telecom as well as oil and gas remained weak, however.
Infrastructure investments among Nordic electricity network companies grew additionally somewhat from an already high level. In this market, demand from electricity transmission customers increased, while sales to electricity distribution customers stayed at a continued high and stable level. The market for electricity-related products in building and installation was positive.
Sales of products to the industrial aftermarket, such as mechanical industry and the forest and process industries, increased somewhat, while demand from the shipping market was very good during the quarter.
During the start of the financial year we have completed three acquisitions which add sales of about SEK 225 million on an annual basis. With a strong balance sheet, we have good possibilities of completing additional acquisitions during the year.
President and CEO