LANDSKRONA, Sweden — Haldex released the following year-end report covering the company’s abilities to overcome a variety of challenges for a positive 2021.
Strong organic growth and record operating cashflow, margin impacted by temporary challenges in the supply chain.
FULL YEAR 2021
- Sales amounted to SEK 4,612m (4,007). The organic growth was 21 percent.
- Adjusted operating income increased to SEK 357m (163), equivalent to an adjusted operating margin of 7.7 percent (4.1).
- The structural savings programs reduced expenses by gross SEK 154m for the full year.
- Reported operating income amounted to SEK 341m (-100), corresponding to a margin of 7.4 percent (-2.5). Non-recurring expenses of net SEK 16m (263) impacted the full-year result negatively.
- Earnings per share were SEK 4.65 (-6.44).
- Cash flow from operating activities totaled SEK 296m (215).
- The European Commission (EC) has decided to not pursue the complaint against Knorr-Bremse. Haldex will not object to the European Commission’s decision.
Haldex: Open for Progress
Comment from Jean-Luc Desire, President & CEO
Net sales showed strong improvement in the fourth quarter and reached SEK 1,191m (989), equivalent to organic growth of 19 percent. The Americas and Europe reported strong organic sales growth of 24 and 25 percent respectively, while region Asia had an organic sales decline of 20 percent. The aftermarket segment grew 17 percent organically, with growth in both Europe and the Americas. It is positive to see high organic growth of 38 percent for the Trailer segment, and that our increased focus on this segment is showing results. We see improved underlying demand from our customers, and according to our assessment of external market data, we continue to take market share. Net sales for the full year amounted to SEK 4,612m (4,007), corresponding to organic growth of 21 percent.
The adjusted operating profit amounted to SEK 60m (66), corresponding to margin of 5.0 percent (6.7) in the fourth quarter. Raw material and component prices as well as freight and logistics costs have been steadily and rapidly increasing throughout the course of 2021, and the constraints in the supply chain continued during the fourth quarter, which has had an impact on the result. In line with other industry players, Haldex increased prices for the aftermarket business and to OEM customers in the Americas and Europe, effective November and December, respectively. However, the actions taken did not have full effect during the fourth quarter. Haldex will continue to take action to ensure delivery of products to customers in a timely and cost-effective way.
The adjusted operating profit for the full year reached SEK 357m (163), corresponding to a strong margin of 7.7 percent (4.1). The reported operating margin of 7.4 percent (-2.5) is the highest since the split of the Group in 2011. The cashflow from operating activities was also record high, amounting to SEK 281m (123) in the quarter.
During the quarter, the Americas team secured a position with a leading axle manufacturer as the supplier of our low-weight Air Disc Brake (ADB). Haldex worked cooperatively with a fleet customer to recommend the Haldex ADB product in a process known as “fleet-pull-through”, which resulted in a launch and specification of the Haldex ADB at a globally recognized fleet customer. Many fleets look to this fleet customer as an industry trend setter, which will be beneficial for future air disc brakes penetration in the region.
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