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 increased by 1 percent to SEK 1,554 million (1,542). Operating profit decreased to SEK 96 million (98). All in all for the business area, demand for production components from Nordic manufacturing companies gradually became more stable during the financial year, but the variations between different customer segments and geographical areas remain. Customers in, above all, the vehicle and engineering industry segments and in electronics production reduced their pace of production during the year. The most positive demand was seen in customer segments such as energy, oil and gas in Norway and from large machinery constructors who sell to other markets outside the vehicle and engineering industry segments.
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 1,975 million (1,576), which is an increase of 25 percent. Operating profit climbed 31 percent and reached SEK 200 million (152). Overall, demand for the business area was good during the year, with a favourable start and a strong end to the year, but with a weaker period in Q3. Demand for products for electrical power distribution and transmission was good throughout the year. After a very high volume of deliveries in the transmissions segment, our customers announced slightly lower investment levels, which may affect the business area in the short term. The business conditions for battery solutions in the Nordic markets improved during the year. The market for products in electrical installation, which was weak during part of the financial year, showed signs of a greater willingness to invest during the final 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 increased 2 percent to SEK 1,173 million (1,150). Operating profit amounted to SEK 93 million (93). Following a relatively weak third quarter, demand in the latest quarter stood at a favourable level. Business conditions for the business area continue to differ extensively between different geographical markets and product areas. The business climate for products to the special vehicles industry has become more positive, but remains weaker in the mining segment. Demand from customers in forestry, paper and pulp improved in Sweden, but it was subdued in other markets. Sales were stable regarding electric motor solutions, products in polymer materials in the Danish market and machinery components and production equipment to industrial aftermarket customers.
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 1,393 million (1,141), which is a 22 percent increase. Operating profit rose by 16 percent and amounted to SEK 125 million (108). The business area enjoyed good growth in earnings during the financial year despite a, relatively speaking, weaker result in Q4. For the business area as a whole, demand continued to grow during the final quarter. Sales of diagnostic equipment and reagents to the Nordic healthcare sector were stable during the quarter, while they increased for measuring and analysis instruments to the Nordic process industry, especially in the marine segment. Demand for equipment and reagents to healthcare laboratories and research laboratories also continued to develop well.