Bufab Group: Interim report January - June 2014 Continued

Continued good growth Second quarter 2014 * Net sales increased by 8.4 percent to SEK 579 million (534). Adjusted for currency effects, net sales increased by 6.4 percent. The increase is attributable to higher market shares for segment International and to higher underlying demand. * Operating profit increased to SEK 60 million (58). * Operating margin amounted to 10.3 per cent (10.8). The operating margin was strengthened by higher net sales and gross profit but was burdened by investments within the sales organization. January - June 2014 * Net sales for the six months period increased by 9.9 percent to SEK 1,131 million (1,029). Adjusted for currency effects, the net sales increased by 8.4 percent. * Adjusted operating profit increased to SEK 111 million (98), corresponding to an adjusted operating margin of 9.9 percent (9.5). GROUP IN BRIEF 12 month Quarter 2  D Jan-Jun D rolling Full year D ------------------------------------------------------- SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 % -------------------------------------------------------------------------------- Order intake 565 530 6.5 1,128 1,050 7.4 2,150 2,072 3.7 -------------------------------------------------------------------------------- Net sales 579 534 8.4 1,131 1,029 9.9 2,132 2,031 5.0 -------------------------------------------------------------------------------- Gross profit 177 162 9.3 339 304 11.7 632 596 6.0 -------------------------------------------------------------------------------- Gross margin, % 30.5 30.3   30.0 29.5   29.6 29.3 -------------------------------------------------------------------------------- Operating profit 60 58 3.7 93 98 -5.2 196 201 -2.6 -------------------------------------------------------------------------------- Operating margin, % 10.3 10.8   8.2 9.5   9.2 9.9 -------------------------------------------------------------------------------- Adjusted operating profit 60 58 3.7 111 98 13.6 216 203 6.6 -------------------------------------------------------------------------------- Adjusted operating 10.3 10.8   9.9 9.5   10.1 10.0 margin, % -------------------------------------------------------------------------------- Profit after tax 44 40 8.4 61 63 -3.0 129 131 -1.5 -------------------------------------------------------------------------------- Earnings per share 1.16 1.07 8.4 1.61 1.66 -3.0 3.38 3.43 -1.5 -------------------------------------------------------------------------------- CEO'S OVERVIEW During the second quarter, Bufab's order intake, net sales and operating profit increased. The primary reasons for the positive trend were that the market shares rose while the underlying demand also increased. However, it should be noted that the underlying demand for 2013 was weak, especially during the first quarter but increased successively during the remainder of 2013. It is gratifying that we continue to increase our market shares. According to our assessment, this is a direct result of our growth strategy and our investments in the sales organisation. The growth rate is higher for segment International than for segment Sweden due to a slightly weaker demand in Sweden and the relocation of sales from segment Sweden to segment International due to customers' production relocation. Our continued investment in growth during the year has resulted in higher selling costs than in 2013. This is in line with our strategy. However, taking into account the economic trend that is difficult to assess, in the near future, we will become more restrained in further expanding the sales organisation. Improved efficiency is the second pillar of our strategy. During the first half of the year, we succeeded in initiatives, which resulted mainly in reduced purchase prices and lower costs in the logistics chain. The results of these initiatives are visible in a higher gross margin. Work on further efficiency improvements is ongoing. The third pillar of the strategy is value-creating acquisitions. The evaluation of potential acquisition opportunities is a continuous activity, with a focus on acquisition candidates with growth synergies. In general, we are confident in our strategy and its results. The underlying demand is currently difficult to assess. However, we see good opportunities to continue to capture market shares. This, combined with continuing stable order intake, means that we have good confidence for the rest of the year. Jörgen Rosengren, President and CEO CONFERENCE CALL A conference call will be held on August 13, 2014 at 10.00 CET. Jörgen Rosengren, President & CEO and Thomas Ekström, CFO will present the result. The call will be held in English. In order to participate, please use one of the following numbers; +44 (0) 1452 555566, UK 08444933800, Luxembourg 20880695, Sweden 0850336434 or US 16315107498. Conference code, 70034626. Please dial in 5-10 minutes ahead in order to register. This information is in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act and/or the regulations of NASDAQ OMX Stockholm. The information was submitted for publication at August 13, 2014 at 08.00. CONTACT Jörgen Rosengren Thomas Ekström CEO CFO +46 370 69 69 01 +46 370 69 94 01 jorgen.rosengren@bufab.com          thomas.ekstrom@bufab.com Boel Sundvall Communications & IR +46 370 69 69 61 boel.sundvall@bufab.com ABOUT BUFAB Bufab Holding AB (publ), Corporate Registration Number 556685-6240, is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control and logistics for C-Parts (screws, nuts, etc.). Bufab's Global Parts ProductivityTM customer offering aims to improve productivity in customers' value chain for C-Parts. Bufab was founded in 1977 in Småland and is an international company with operations in 23 countries. The head office is located in Värnamo, Sweden and Bufab has about 800 employees. Bufab's sales for 2013 amounted to SEK 2,031 million and operating profit was SEK 201 million. The Bufab share is listed on NASDAQ OMX Stockholm, under the ticker "BUFAB." [HUG#1848431]