![](//www.4rfv.com/images/no_image.jpg)
First quarter
Net sales for the first quarter reached SEK 616 m (773), corresponding to a decrease of 20%. Currency translations had a negative effect of SEK 3 m on net sales
Order intake was SEK 473 m (682), corresponding to a decrease of 31%
Operating profit reached SEK 130 m (211), equal to a 21.1% (27.4) operating margin. Adjusted operating profit reached SEK 133 m, equal to a 21.6 % adjusted operating margin
Profit after tax totaled SEK 107 m (172) and basic earnings per share was SEK 2.28 (3.70). Adjusted profit after tax totaled SEK 110 m and adjusted basic earnings per share was SEK 2.35
Cash flow from operating activities amounted to SEK 58 m (155)
Last twelve months
Net sales for the last twelve months reached SEK 2,868 m (2,762), corresponding to a 4% increase. Currency translations had a positive effect of SEK 91 m on net sales
Order intake was SEK 2,094 m (2,889), corresponding to a decrease of 28%
Operating profit reached SEK 672 m (725), equal to a 23.4% (26.2) operating margin. Adjusted operating profit reached SEK 698 m, equal to a 24.3% adjusted operating margin
Profit after tax totaled SEK 505 m (568) and basic earnings per share was SEK 10.82 (12.17). Adjusted profit after tax totaled SEK 531 m and adjusted basic earnings per share was SEK 11.38
Cash flow from operating activities amounted to SEK 422 m (506)
Subsequent events
Completed acquisition of 100% of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other jurisdictions ( Red Lion Controls )
Launch of cost saving program to reduce cost and streamline organization
CEO commentsA CHALLENGING QUARTER BRIGHTER FUTURE AHEAD
As expected, the first quarter of the year was weak for HMS. With an order book now back to normal levels, the low order intake also affects invoicing. As we have reported in recent quarters, our customers continue to adjust inventories to normal levels and shorter lead times, which means that our reported order intake does not reflect the underlying demand. We can see some improvements in order intake during the start of April, which is also in line with our expectations.
The quarter's order intake amounts to SEK 473 million (682), corresponding to an organic decrease of 36%. We can see that the quarter's order intake was negatively affected by our customers' inventory adjustments by approximately SEK 180 million. The underlying order intake is estimated at SEK 635 million, which indicates a continued wait-and-see market.
The quarter's net sales amounted to SEK 616 million (773), which corresponds to an organic decrease of 20% compared to the corresponding period last year.
The order book decreased by SEK 137 million and amounts to SEK 641 million at the end of the quarter, which we consider to be a normal level going forward.
Although we see a slight improvement in demand, we are now taking measures to be able to handle a short-term decline in turnover, to protect our operating profit and enable growth investments going forward. We also take advantage of early cost synergies from the acquisition of Red Lion Controls. We are therefore now starting a restructuring program that aims to lower our cost level by SEK 30 million in 2024, with an expected full-year effect of SEK 55 million. The program is expected to affect 45 positions in total, of which 25 are in Sweden. The second quarter is expected to be burdened by restructuring costs of SEK 35 million related to the program.
Our gross margin, burdened mainly by lower volumes and product mix, lands at 62.6% (64.8). During the quarter, we have also cut back on staff in our production to handle the lower demand.
We have already taken certain measures during the quarter to keep our operating costs down primarily by postponing a number of activities. Operating costs amount to SEK 256 million (290) and includes integration and transaction costs of SEK 3 million, related to the acquisition of Red Lion Controls. Organically, operating costs excluding integration and transaction costs decreased by 13%. During the latter part of the year, we will carry out previously postponed activities and will therefore see a slightly higher cost level, despite the above-mentioned cost savings.
The adjusted operating profit in the quarter amounted to SEK 133 million (211), which corresponds to an operating margin of 21.6% (27.4). The quarter's cash flow from current operations amounts to SEK 58 million (155), which is affected by continued increased working capital, mainly related to our relatively large inventory.
STILL WEAK DEVELOPMENT IN EUROPE, BUT TENDENCIES FOR IMPROVEMENT
Although still week, In Europe we see some improvement in order intake compared to the second half of 2024 and we have indications from our customers that the trend should continue in the right direction in the second quarter, and that during the second half of the year expect to see a more clear improvement.
In Asia, primarily driven by Japan, where we have had the biggest impact from pre-purchase orders, we still see weak demand and continued high inventory levels at our largest customers. Here, we expect to receive new order only towards the end of the year.
What is somewhat surprising is the development in North America, which is taking a small step back after a good development at the end of 2023. The slightly weaker order intake in the US is related to the Anybus embedded products, where we still have a couple of our biggest customers holding inventory. Overall, we still see that North America has the prerequisites for a good development over the year.
THE ACQUISITION OF RED LION CONTROLS HAS BEEN COMPLETED
On April 2nd, we gained access to our largest acquisition to date, Red Lion Controls. The acquisition is consolidated from the first of April. Several activities are now underway to realize the sa
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
26/07/2024
by Ianeta Le'i
I honestly don't remember the first time I met Bryson Ch...
26/07/2024
(L-R) Louise (Karen Gillan) and Antonina (Margaret Sophie Stein) strike up an un...
26/07/2024
Last month, Spotify's annual Songs of Summer predictions made their return, ...
26/07/2024
Summer is peak season for some of our favorite sports and events. Whether you're rooting for the home team at the ballpark or cheering for your country as i...
26/07/2024
Nine talented young professionals completed their vocational training at SGL Carbon in Meitingen from the beginning of June to mid-July, achieving an overall gr...
26/07/2024
Orders1 of $5.2 billion; book-to-bill of 1.0x
Revenue of $5.3 billion, up 13%
...
26/07/2024
(Editor's note: TVTech reached out to several station groups to determine the impact of the CrowdStrike outage on operations. Many, including NextStar Media...
26/07/2024
NEWPORT BEACH, Calif. Bitcentral has integrated Pixalate's ad fraud protection, privacy and compliance analytics solution Post-Bid Analytics and Reporting i...
26/07/2024
Aldous Huxley's classic novel Brave New World is a science fiction thriller set in a murky future with a highly ordered society. While Huxley and other sc...
26/07/2024
Hollyland Adds Pyro 7 All-in-one Video Monitor, TX and RX to Pyro Series
Brie Clayton July 26, 2024
0 Comments
Seven-inch 2.4/5GHz wireless monitor wi...
26/07/2024
Geddy Lee Asks Are Bass Players Human Too? Graded Using DaVinci Resolve Studio
Brie Clayton July 26, 2024
0 Comments
Blackmagic today announced that t...
26/07/2024
Another reminder of the popularity of ad-supported connected TV comes in a survey by Premion and Advertiser Perceptions which found that 61% of the marketers th...
26/07/2024
Nielsen's Gracenote unit said it is selling its metadata about the content of television shows and movies for use in targeting connected-TV advertising camp...
26/07/2024
CBS premieres 13 Days in Ferguson, a special about the aftermath of a police shooting of a young Black man in 2014, on Friday, August 9. The special features Ce...
26/07/2024
Disney and Warner Bros. Discovery announced the launch of their long-awaited premium streaming bundle for the United States. For $16.99 per month, subscribers w...
26/07/2024
It provides multi-voltage output (14.4V, 28V, and 48V) through two XLR4 outputs and one XLR3, offering power to cameras, monitors, and lighting equipment
By Je...
26/07/2024
The lawsuit submitted by investor Scott Baker claims the deal would cost Paramount shareholders $1.65 billion
By Jenny Priestley
Published: July 26, 2024
...
26/07/2024
Florida-based Video Village Miami provides on-set video assist for local commercials and music videos. Frank Collins established the outfit in 2019 after a 20-y...
26/07/2024
QuickLink, the leading global provider of multi-camera video productions and remote contribution solutions, will present QuickLink StudioPro at IBC 2024 (Stand ...
26/07/2024
Relo Metrics (formerly GumGum Sports), the leading AI-powered sponsorship analytics platform for real-time data decisions, today launched an industry-leading in...
26/07/2024
Anton/Bauer, a leading provider of mobile power systems for the film and television industry, has announced the launch of the VCLX LI 1600. The latest evolution...
26/07/2024
Bitcentral, the leading provider of professional media solutions for broadcast and digital video, today announces that it has integrated Pixalate, the ad fraud ...
26/07/2024
Cobalt Iron Inc., a leading provider of SaaS-based enterprise data protection, today announced that Secure Automated Backup with Compass , a cloud backup-as-a-s...
26/07/2024
VisualOn IBC2024 Exhibitor Preview
Sept. 13-16
Amsterdam
Stand 5.A52
As video streaming consumption surges, service providers face significant challenges wi...
26/07/2024
Quanteec
IBC2024 Exhibitor Preview
Sept. 13-16
RAI Amsterdam
Stand 1.A05
Quanteec, a global provider of video delivery technology for broadcasters, will s...
26/07/2024
Witbe
IBC2024 Exhibitor Preview
Sept. 13-16
Amsterdam
Stand 5.F84
At IBC2024, Witbe will showcase the power of its automated testing and proactive monitori...
26/07/2024
WASHINGTON, D.C. The Federal Communications Commission has announced the launch of its new Mobile Speed Test app. The new app features an enhanced user interfac...
26/07/2024
LONDON In a notable landmark for the use of cloud-based services at the Olympics, Alibaba Cloud and Olympic Broadcasting Services (OBS), has today announced the...
26/07/2024
NEW YORK As part of a $2.5 billion media rights deal with the NBA announced on July 24, NBCUniversal and the NBA have also announced an 11-year agreement for ri...
26/07/2024
BEAVERTON, Ore. Versatile Video Coding (VVC) promises to play a pivotal role in driving advancements in video compression technology, with organizations across ...
26/07/2024
COLUMBUS, Ohio The political news channel PurpleTV has expanded it reach with news that it has launched on Channel 25.1 in Columbus, Ohio on TV Station WXOH, wh...
26/07/2024
NEW YORK As part of a push into the contextual advertising business, Nielsen's Gracenote has announced that it is developing new contextual categories to gi...
26/07/2024
Puget Systems Returns to SIGGRAPH 2024 to Demonstrate its On-Premises Generative...
26/07/2024
Dreamtek Delivers Innovative A/V, Live Production and Post Workflows with Blackm...
26/07/2024
Dejero to bring even smarter' mobile internet connectivity solutions to IBC...
26/07/2024
The 2024 Paris Olympic Games are about to begin, and Capitol Broadcasting is rea...
26/07/2024
Berklee Alumni Nominated for 2024 Emmy Awards Twenty-one Berklee alumni received Emmy nominations this year for music composition, sound mixing, and sound editi...
26/07/2024
Jennifer Lyons, president and general manager of WBBM Chicago, is moving into a ...
26/07/2024
Kennan Oliphant has been named VP of news and station manager at WWJ Detroit. He will report to Jennifer Lyons, who has added a regional GM role that gives her ...
26/07/2024
Charlie Hustle & The Matter of Pete Rose, a four-part docuseries, debuts on HBO and Max July 24. The series details the life of the baseball superstar, includin...
26/07/2024
The 2024 Paris Olympic Games present a unique and exciting opportunity for local...
26/07/2024
Paris 2024: V varo Providing Live Media Transport Services for Leading Internati...
26/07/2024
Paris 2024: BBC Sport on Its Remote Production Workflow for the Summer Games By Heather McLean, SVG Europe
Friday, July 26, 2024 - 7:31 am
Print This Story...
26/07/2024
Paris 2024: BBC Sport Unveils the Olympic Storytelling and Breathtaking Scenery ...
26/07/2024
Paris 2024: Taking a Step Forwards with BBC Sport's Olympic Studio Combining...
26/07/2024
Paris 2024: Warner Bros. Discovery Sports Europe Provides a First Look at Its Ol...
26/07/2024
Live From Paris 2024: NBC Olympics Set for Historic Opening Ceremony Unilateral coverage builds on impressive OBS production as NBC dives deep into Team USA cov...
26/07/2024
Live From Paris 2024: SVG's Onsite Editorial Team Breaks Down Opening Ceremo...
26/07/2024
True-crime documentary, The Body Next Door to launch on Sky Documentaries and NO...