FinnvedenBulten Predicts Auto OEM Slowdown

Add to my favorite

2011-12-30

International industrial group FinnvedenBulten reported sales during the third quarter of 2011 rose 19% to MSEK 703.9 (US$101.2 million). EBITDA increased 17.6% to MSEK 60.6, while operating earnings grew 18.2% to MSEK 43.1.

"Concerns about macroeconomic effects, linked to countries with high levels of debt, increased during the quarter, but had no direct impact on the production demand," FinnvedenBulten reported. But the Swedish company predicted lower market activity in coming months. "Several automotive OEMs as well as suppliers have in October announced reduced production plans in Q4 or Q1 2012," the company stated.

In April 2011, FinnvedenBulten signed a letter of intent with Automotive Components Division of GAZ Group, Russia's largest manufacturer of commercial vehicles, to establish a fasteners joint venture at the GAZ Group facilities of Gorky Automobile Plant. The plant will be Sweden-based FinnvedenBulten’s first production site in Russia. The joint venture, which is made through the Automotive Components Division of the GAZ Group and the Bulten division of FinnvedenBulten, will develop and manufacture fasteners for the automotive industry in Russia and the CIS.

reference from FIN arranged by Fastener World Inc.