
Gränges, a supplier of rolled aluminium products for heat exchanger, presented interim results for the nine months 2018. The company’s sales volume increased to 287.5 ktonnes (286.5). Net sales stood at SEK 9,836 million (8,701).
Adjusted operating profit stood at SEK 813 million (754), up 7.9%, while adjusted operating profit per tonne increased to 2.8 kSEK (2.6). Profit for the period increased to SEK 539 million (500) and includes SEK –64 million of items affecting comparability and profit from joint ventures of SEK 22 million.
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Cash flow before financing activities decreased to SEK 398 million (530) and includes capital expenditure of SEK 524 million (180) and an increase in working capital of SEK 165 million due to US sanctions against one of Gränges’ aluminium suppliers.
Gränges CEO Johan Menckel said: Gränges continued to experience good demand in North America during the third quarter, while the development of the European and Asian markets has been weaker. Production disturbances when commissioning new equipment in Finspång, Sweden had a negative impact on adjusted operating profit of SEK 22 million due to lower deliveries and higher costs.”
In Asia, sales volume was on par with third quarter last year, which was a better development than the overall market. In China, sales to the automotive industry rose by some 3 per cent during the quarter which also was a higher growth compared to the underlying market.
In Europe, sales of heat exchanger materials decreased by about 5 per cent in the third quarter, to a large extent due to the production disturbances in Finspång. In the Americas, demand for domestically produced products continued to increase following the anti-dumping duties imposed by the US on rolled aluminium products from China. The sales volume of automotive heat exchanger materials to customers in the Americas was higher than in the previous year.
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