Swedish firms have reported mixed financial results for Q3 2023. Engcon, a specialist in attachments, reported a 7% rise in Q3 order intake to SEK 347 million and a 2% organic order growth, despite challenging market conditions. However, its net sales fell by 6% to SEK 391 million, operating profit plunged by 47% to SEK 55 million, and quarterly profit dropped by a substantial 48% to SEK 41 million. CEO Krister Blomgren attributed this to investments in growth markets and the cyclical Nordic market trend impacted by high interest rates and shrinking excavator sales.
In contrast, Bulten reported a net sales increase of 25.9% to SEK 1,378 million and order bookings rose by 51.8% to SEK 1,566 million from SEK 1,033 million last year. CEO Anders Nyström highlighted the acquisition of Asian distribution company Exim & Mfr Holdings Pte Ltd as pivotal in accessing new customer groups and achieving the highest ever Q3 sales for Bulten.
AB Sagax, a property firm based in Sweden, witnessed a 16% rise in rental revenue to SEK 3,160 M in Q3. Profit from property management surged by 17% to SEK 2,972 M and profit per Class A and B share after dilution went up by 18% to SEK 8.64. CEO David Mindus announced an adjusted forecast for 2023 profits from property management at SEK 3,900 M.
Meanwhile, SCA reported a decline in net sales for January-September 2023 and Q3 compared to the preceding year due to lower selling prices. However, increased delivery volumes and positive exchange rates, along with performance in the Forest segment and growth in the Renewable Energy segment, somewhat counterbalanced this decline.
AB Electrolux's net sales decreased due to weak market demand and consumer preference for lower-priced items. However, operating income rose to SEK 608m from a loss of SEK -385m the previous year. The company is accelerating its cost reduction efforts to restore margins and expects net cost savings of SEK 10-11bn in 2024 vs 2022.
Genova Property Group AB saw rental income rise by 32% to SEK 377.1m and net operating income increase by 36% to SEK 280.7m. However, due to increased interest costs and negative joint venture value changes, property management income fell by 44% to SEK 42.5m.
These results reflect the varied impact of market challenges on Swedish firms, with some managing to achieve growth despite adverse conditions.
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