Stockholm, 15 February 2019
STRONGEST QUARTER EVER - AGAIN!
SEK M Q4 Q4 % 12m 12m %
2018 2017 2018 2017
Revenue 1,019 606 68% 3,241 2,567 26%
EBITDA 105 46 130% 322 214 50%
Operating profit 84 38 124% 274 187 46%
Result for the period 64 28 127% 209 151 38%
Earnings per ordinary share 4.40 0.52 741% 13.22 8.06 64%
Return on capital employed 41.3% 36.1% 41.3% 36.1%
Working capital / Revenue 1.5% 4.6% 1.5% 4.6%
Net debt / (cash) (303) (312) (303) (312)
Lars Corneliusson, CEO Ferronordic, comments: "The fourth quarter was our strongest quarter ever in terms of both revenue and earnings. Revenue increased by 68% compared to the same period in 2017 and was 25% higher than during our second-best quarter. At the same time we managed to continue to reduce operating expenses as a percentage of revenue and thus increase operating profit and net income by as much as 124% and 127%, respectively. Also for the year as a whole both revenue and earnings increased significantly. Our success in 2018 is explained e.g. by the growing contracting services business, as well as growing aftermarket sales, particularly during the second half of the year, and to a large extent driven by our digitalization program. In addition to expanding our existing business, we also signed an agreement to become Volvo CE dealer in Kazakhstan and thus took the first step in our expansion beyond Russia. As regards demand on our markets in the long- and medium term perspective, we remain optimistic, especially given the existing indications of significantly increased infrastructure spending. Finally, the Board will propose an ordinary dividend of SEK 3.75 per share and an extraordinary dividend of SEK 3.75 per share, i.e. in total SEK 7.50 per share."
Ferronordic is the authorized dealer of Volvo Construction Equipment, Terex Trucks, Dressta, Mecalac and Rottne in Russia. In certain parts of the country, Ferronordic has also been appointed aftermarket dealer for Volvo and Renault Trucks and dealer for Volvo Penta. Since January 2019 Ferronordic is also the authorized dealer of Volvo Construction Equipment and Mecalac in Kazakhstan. The company began its operations in 2010 and has expanded rapidly across Russia. The company is well established in all federal districts with 79 outlets and over 1,000 employees. Ferronordic's vision is to be regarded as the leading service and sales company in the CIS markets. The shares in Ferronordic are listed on Nasdaq Stockholm.
Financial Calendar 2019/20
Interim report January-March 2019 14 May 2019
Interim report January-June 2019 15 August 2019
Interim report January-September 2019 22 November 2019
Year-end report January-December 2019 20 February 2020
For more information, please contact:
Lars Corneliusson, CEO, Tel. +46 70494 11 22, or firstname.lastname@example.org
This information is information that Ferronordic Machines AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 15 February 2019, 07:30 CET.
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