1 / 28

Seco Tools Group Q2-2009

Seco Tools Group Q2-2009. Highlights Q2. Revenue growth was -40% in fixed currencies and -30% in SEK Stabilization on low level We continue to win market-share EBIT-margin for Q2 was 3,4% vs. 22,3% last year Margin decrease driven by the dramatic drop in volume Stable prices

deva
Download Presentation

Seco Tools Group Q2-2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Seco Tools Group Q2-2009

  2. Highlights Q2 • Revenue growth was -40% in fixed currencies and -30% in SEK • Stabilization on low level • We continue to win market-share • EBIT-margin for Q2 was 3,4% vs. 22,3% last year • Margin decrease driven by the dramatic drop in volume • Stable prices • Savings and currency gains partly offsets volume decline • Ongoing saving programs increased and ahead of time plan • Initiated programs increased with 100 MSEK – annual savings now estimated to be around 600 MSEK whereof 500 will impact 2009 • Workforce reduction now estimated to be approx 850 • Q2 restructuring costs was 24 MSEK. Around 10 MSEK in additional restructuring costs for the already started programs are estimated for H2 • We stay the course! • Maintain strategic direction • Launches of several new competitive products - Square 6 released in Q2 • Uncertain 2009 • Stock reductions at end customers impact current demand situation • No sign of a near upturn

  3. Seco Tools Group Growth Analysis Q2 Fixed currency - 41 % Acquisition + 1 % Currency +10 % SEK total - 30 % CEE excl. ALG: -38%

  4. Financial keydata Y-o-Y: 2008 + 4% 2009: Q1 - 30% Q2 - 43% 2009 - 37%

  5. Financial keydata Seco revenues in fixed currencies. Macro data up to 30/04/2009.

  6. Financial keydata Y-o-Y: 2008 + 3% 2009: Q1 - 28% Q2 - 44% 2009 - 36%

  7. Financial keydata Seco revenues in fixed currencies. Macro data up to 31/05/2009.

  8. Financial keydata Y-o-Y: 2008 +17% 2009: Q1 - 22% Q2 - 34% 2009 - 28% YTD -33% excl ALG

  9. Financial keydata Y-o-Y: 2008 + 5% 2009: Q1 - 28% Q2 - 31% 2009 - 30%

  10. Financial keydata

  11. Financial keydata

  12. The decline in historical perspective

  13. Cost adjustment measures • Total savings • In order to compensate for somewhat lower volumes larger savings activities have been initiated • Annual cost level will be reduced by 600 MSEK (previously 500 MSEK) relating to both direct and fixed costs • Impact on 2009 result is approx. 500 MSEK (previously 400 MSEK) • Total workforce will be reduced by approx 900 people (previously 800), whereof approx 200 are staff. Reductions include time- and salary reductions corresponding to around 220 full time equivalents

  14. Personnel reduction plan • Reductions ahead of time plan • Total reductions approx 50 people higher * Not reported temporaries

  15. referens We are taking market share! Accumulated market growth- goal: 0,2 percentage unit per year

  16. Square 6 • A new family of square shoulder milling products • Six cutting edges per insert gives optimal economy without compromising performance • Product very well received since launch in Q2

  17. Strategic Direction Customer Intimacy and Solution Orientation • Customer intimacy and understanding the customer’s manufacturing process • Solutions orientation • High performance products and services • Global competence and support structures • Distributors We stay the course!

  18. 40% field sales and technicans close to customers 2005 till 2008 Positioning for Growth Capital expenditure (excl acquisitions) Number of employees Time for payback and consolidation

  19. Financial keydata Q2-2009Q2-2008 • Invoicing, SEK M 1,180 1,697 • EBIT margin 3,4% 22,3% • EBIT, SEK M 40 378 • Earnings per share (SEK) 0,10 1,76 • ROCE (Roll 12 mths) 16,9% 38,2% • Net debt / equity ratio 1,040,99

  20. Result development Q2-2009 Rev. / EBIT 1 180 / 3,4% Volume and other Restructuring Currency Savings

  21. Financial keydata Financial target

  22. Financial keydata Operational Cash Flow • Cash Flow higher than EBIT • Reduced level of working capital • Lower investment level Operating cash flow includes changes in working capital but excludes acquisitions

  23. Financial keydata Working capital includes trade receivables, inventories and trade payables

  24. Financial keydata Working capital includes trade receivables, inventories and trade payables

  25. Financial keydata

  26. Financial keydata

  27. Financial keydata

More Related