Development in the business areas
Addtech Components markets and sells components and subsystems in mechanics, electromechanics, hydraulics and electronics as well as automation solutions to customers in manufacturing.
Net sales in Addtech Components decreased by 2 percent to SEK 1,131 million (1,151). Operating profit amounted to SEK 69 million (76).
All in all, demand for the business area from Nordic manufacturing companies recovered slightly during third quarter. Some delays in outgoing deliveries during the quarter adversely affected both sales and profit. The differences between various markets and customer segments prevail. The Finnish operations again had a weaker business climate during third quarter, while on the whole in the quarter the Swedish operations experienced slightly more stable demand than before. The market in Denmark is growing slowly but stably towards a slightly higher level. The Norwegian operations in above all oil, gas and marine industries, continue to develop well.
Addtech Energy markets and sells battery solutions, electric power distribution products and products for electrical safety, electrical installations and connection technology. Its customers are in the energy and telecom sectors and the commercial vehicle industry.
Net sales in Addtech Energy totalled SEK 1,411 million (1,124), which is an increase of 25 percent. Operating profit amounted to SEK 141 million (111).
From an overall perspective, the business area experienced good demand throughout the interim period. In this area, the end of the latest quarter was also affected by deliveries delayed until after the end of the calendar year. Overall, the business conditions for battery solutions were stable in the Nordic markets. Demand for products for electrical power distribution and transmission was sound throughout the interim period. The market for products in electrical installation and electrical safety remained robust in Norway, but was weaker in Sweden also during third quarter.
Addtech Industrial Solutions
Addtech Industrial Solutions markets and sells machine components, products made of polymeric materials, electric motors and transmissions, customer-specific products in electromechanics as well as equipment and consumables for the manufacturing industry. Products under own brands are marketed and sold to local and global industrial customers.
Net sales in Addtech Industrial Solutions reached SEK 855 million (857). Operating profit amounted to SEK 63 million (66).
The business situation for the business area differs substantially between various geographic markets and product areas, but from an overall perspective demand remains relatively unchanged. The operations outside the Nordics have developed more positively than our Nordic operations. Several major customers have continued to purchase smaller volumes, while interesting new projects have been added. Demand for products for the special vehicles sector stabilised slightly in the quarter, but remains on a low level from manufacturers of mining-related machinery. Sales have been subdued regarding electrical motor solutions and products made of polymeric materials in the Danish market. Demand from industrial aftermarket customers was stable in third quarter.
Addtech Life Science
Addtech Life Science markets and sells instruments, consumables and services to laboratories in healthcare and research, diagnostic equipment for the healthcare sector and process and analysis equipment to industry.
Net sales for Addtech Life Science were SEK 1,019 million (812), which is a 26 percent increase. Operating profit amounted to SEK 100 million (81).
The market for the business area's products and solutions was good throughout the interim period. Deliveries brought forward had some positive effects on diagnostic equipment and reagents to the Nordic healthcare sector in the second quarter. Despite this, demand was at a stable high level in the third quarter. Demand for measuring and analysis instruments for the marine industry segment increased during the period, while demand from the Nordic process industry was stable. Sales of equipment and reagents to healthcare laboratories and research laboratories continued to develop well.