About VBG Group Divisions Investor Relations Corporate governance Career Press plug The CEO has the floor VBG Group in brief Strategy History A long-term social responsibility FAQ - The owner foundations and VBG Group search Start > VBG Group > About VBG Group > The CEO has the floor The CEO has the floor VBG Group delivers a strong first quarter The first quarter of the year meant, as last year, a very good start to the financial year for VBG Group. With an operating profit of SEK 55.7 million and an operating margin of 15.7 percent, the quarter was historically the third best. For the Group as a whole, the first quarter is usually the strongest, both in terms of sales and earnings. This is partly due to the fact that it contains more working days than in other quarters, but also because a normally weak December month with low operations and inventory reductions at several customers creates a greater need at the beginning of the year. The fact that some products, such as Onspot automatic slip protection, are sold slightly more during the winter season also has a positive effect on the first quarter. It is also noteworthy that the Group reported net cash at the end of the quarter. The Group's total cash and cash equivalents of SEK 216 million were thus greater than the Group's interest-bearing loan debt (including pension liabilities) of SEK 208 million. This has not happened since 1996. VBG Truck Equipment - delivers top results The Group's largest division reported a first quarter in absolute top class. Operating profit amounted to almost forty million kronor, which is the best result ever for a single quarter. This of course meant that the operating margin also rose to as much as 21 percent. During the first quarter, indications and positive signals of increased activity were noticed in a number of geographic markets, including the division's largest market, Germany. My hope, but also assessment, is that we will see continued growth in VBG Truck Equipment's important markets in the coming quarters. Edscha Trailer Systems - continued low sales but positive results Last year, Edscha Trailer Systems opened with a strong first quarter, and then experienced three quarters with a much weaker market. This resulted in low sales and red profit figures. The division's sales and earnings for the first quarter of the year were certainly lower than the same period last year, but it was still significantly better than the three closing quarters in 2014. It therefore feels good that Edscha Trailer Systems now reports an operating margin of 8.4 percent, which also gives hope for a positive development during the rest of 2015. The new roof for tipper vehicles, which was received with great interest when it was presented to the market last year, will probably not make any major impact on the division's sales and earnings until the end of this year at the earliest. . Ringfeder Power Transmission - increased sales and continued good profitability The consolidation of German Tschan, which was acquired on 1 July 2014, will take place for most of 2015. An important area for Ringfeder Power Transmission's management is to streamline Tschan's production and logistics. At the same time, intensive market-oriented work is underway to train, develop and coordinate the division's internal sales organization and the global distributor network. During the first quarter, the division's sales increased by fifty percent compared with last year. Chan was, of course, a major contributor to this increase. In terms of earnings, Tschan reported an operating profit just above zero, which in itself was according to plan, but at the same time it dilutes the division's total margin by almost four percentage points. The division's operating margin of just over fourteen percent for the quarter feels stable. The acquisition of Tschan is a long-term investment and even though there is still a lot of work left for Ringfeder Power Transmission, I am full of confidence and I expect a positive development and a further strengthened market position for the division. VBG Group - focus in 2015 From the parent company's side, we will continue the work of mapping and approaching suitable acquisition objects, especially with a focus on additional acquisitions. The work we have put into a purposeful and structured acquisition agenda in recent years, together with our strong financial position, has created good conditions for succeeding with our intentions to grow structurally. We will also closely monitor the profitability development within our three divisions and their work to realize their business plans. I see, as I put it in the year-end report and in the annual report, good opportunities for VBG Group to increase both sales and earnings in 2015, provided that our current cautiously positive assessment of market development materializes. Anders Birgersson President and CEO VBG Group AB (publ) Herman Kreftings g. 4, Box 1216 SE-462 28 Vänersborg Sweden tel +46 521 27 77 00 fax +46 521 27 77 93 © VBG Group AB