DEVELOPMENT IN THE BUSINESS AREAS
Net sales in Automation increased in the third quarter by 22 percent to SEK 588 million (481) and EBITA increased by 6 percent to SEK 51 million (48). Net sales during the period increased by 24 percent to SEK 1,731 million (1,397) and EBITA increased by 18 percent to SEK 168 million (142).
The Automation business area continued to experience good underlying demand, although this has evened out at a high level. In the business area’s largest segments, mechanical industry and medical technology, the business situation remained positive and demand was stable with regard to deliveries of production components and automation solutions. Market conditions also favoured operations exposed to the defence industry, while demand in data and telecom continued to vary between geographical markets.
Net sales in Components increased in the third quarter by 2 percent to SEK 489 million (482) and EBITA amounted to SEK 41 million (45). Net sales during the period increased by 7 percent to SEK 1,504 million (1,407) and EBITA amounted to SEK 153 million (156).
Demand for production components from Nordic manufacturers held at a good level despite still strong comparison figures from the preceding year. The market situation in Norway and Finland was favourable, and it remained stable in Denmark and Sweden. The companies in the business area still perceived a levelling-off in demand in the mechanical industry while the market situation for special vehicles was stable. The business situation was favourable in the electronics industry as well as in wind power, defence, oil and gas, and marine industries.
Net sales in Energy in the third quarter amounted to SEK 596 million (607) and EBITA increased by 14 percent to SEK 62 million (54). Net sales during the period increased by 6 percent to SEK 1,808 million (1,713) and EBITA increased by 17 percent to SEK 204 million (174).
For the business area as a whole, the market situation remained positive. Demand for infrastructure products for national and regional grids held at a high level. Our units that sell niche products for electricity distribution perceived lower demand. Units serving the expansion of fibre-optic networks and the building and installation segments also noted some slackening in demand. Work on customer focus and streamlining continued to have a positive effect on operating margins.
Net sales in Industrial Process increased in the third quarter by 33 percent to SEK 800 million (603) and EBITA increased by 100 percent to SEK 95 million (48). Net sales during the period increased by 55 percent to SEK 2,472 million (1,598) and EBITA increased by 124 percent to SEK 332 million (148).
Sales of products and services for environmental improvement solutions in the marine segment remained at a very high level, while the quarter saw considerably lower demand for new projects. Organic growth had also given good leverage on margins in the third quarter. In manufacturing, demand in mechanical industry and special vehicles, as well as in the forest industry was somewhat lower during the quarter, while the business situation remained stable in other process industries.
Net sales in Power Solutions in the third quarter amounted to SEK 377 million (384) and EBITA amounted to SEK 36 million (56). Net sales during the period increased by 1 percent to SEK 1,196 million (1,183) and EBITA amounted to SEK 163 million (169).
On the whole demand was stable during the quarter, although the business situation varied between different customer and product segments. The market for customised batteries remained highly positive, while demand in special vehicles, still declined somewhat from previously very high levels. Sales of power supply systems were lower in the third quarter, while demand for components for the wind power industry was stable. During the quarter, margins were negatively affected by the product mix and restructuring expenses.