Positive first half for all three NIBE business areas

Today’s interim report from NIBE shows an increase in both sales and profit.

• Sales rose by 3.7% to SEK 6,343 million (SEK 6,115 million)
• Operating profit rose by 11.8% to SEK 703 million (SEK 629 million)
• Profit after net financial items rose by 12.8% to SEK 645 million (SEK 572 million)
• Earnings per share before and after dilution were SEK 1.09 (SEK 1.00) 
• Acquisition of North American Heatron Inc., remaining 40% of shares in British Stovax Heating Group Ltd., 50% of shares in Air-Site AB, Italian business ATE Electronics and North American Climate Control Group Inc. (July)

“We have had a positive first half of 2016 with both improved market share and operating margins for all three business areas,” says Gerteric Lindquist, President and CEO of NIBE.  “Demand in Europe varies from country to country and from industry to industry, while in North America and Asia the trend continues to be more favourable. In contrast to the same period last year, organic growth was somewhat lower due to a strengthening of the Swedish krona.

“The acquisition of the American company Climate Control Group with sales of about SEK 2.3 billion, has been the biggest event in 2016 and the largest acquisition ever for NIBE in terms of sales. The NIBE Climate Solutions business area is now truly represented in the sustainable energy solutions market for commercial properties in North America, which means interesting future opportunities.

“The NIBE Element business area now has an operating margin level in excess of 10% on a rolling 12-month basis, thanks to long-term, diligent improvement efforts, a comprehensive product portfolio and a strong market presence on all industrialised continents.

“NIBE Stoves is also developing positively since it can offer customers affordable products of the highest quality and timeless design as well as the very best environmental and efficiency performance.

“The immediate financial scope for additional large acquisitions in the future has been limited by the acquisition of Climate Control Group, so the preferential rights issue that we announced in May is being planned for the autumn.

“Our business philosophy and strong product programme with a focus on sustainability and energy efficiency is timely. Profitability is stable and we’re well prepared for offensive acquisitions. The impact of economic trends, currency concerns, low energy prices and the growing political turmoil in many parts of the world are difficult to predict, but we are cautiously optimistic about the year as a whole,” says Lindquist. 

Press information

A teleconference (in English on +46 8 566 426 97) will be held for the press and analysts today at 11.00 CET with CEO Gerteric Lindquist and CFO Hans Backman.

N.B.: You must be registered at www.nibe.com in order to view the images for the presentation.

Benny Torstensson, CIO: +46 (0)433-73 070

Christel Fritiofsson, Investor Relations: +46 (0)433-73 078

• Download Press release External link.
• Download Q2 report External link.