HMS Q2 Report 2018
19/07/2018
Net sales for the second quarter reached SEK 329 m (299), corresponding to an increase of 10 %
Operating profit reached SEK 63 m (59) equal to a 19 % (20) operating margin
Order intake was SEK 336 m (328), corresponding to an increase of 3 %
Cash flow from operating activities amounted to SEK 51 m (57)
Profit after taxes totalled SEK 42 m (40) and the earnings per share was SEK 0.90 (0.86)
First six months
Net sales for the first six months amounted to SEK 649 m (577), corresponding to a 13 % increase. The revaluation of the Swedish krona had a positive impact of SEK 14 m
Operating profit was SEK 125 m (117), equal to a 19 % (20) operating margin
Order intake was SEK 686 m (626), corresponding to an increase of 10 %
Cash flow from operating activities amounted to SEK 71 m (109)
Profit after taxes totalled SEK 79 m (80) and the earnings per share was SEK 1.69 (1.72)
Subsequent events
After the quarter, HMS acquired 100 percent of the share capital in the German company, Beck IPC GmbH. The acquisition price amounted to EUR 5 m on a cash and debt free basis and was paid in cash.
Comment from the CEO The year's strong development continues during the second quarter with record net sales, but with a growth that is slightly weaker compared to previous quarters. Organic growth reaches 10 %, adjusted for currency effects, local currency growth is 6 % compared with the same quarter in 2017. This growth level is not satisfactory for HMS.
After two quarters with weak development in North America, the business is now back in a growth phase. The growth has now been driven by a strong industrial market and reinforcements in our sales organization. On the other hand, we see a reversed situation in Japan where the strong start of the year has now been followed by a weak second quarter. However, we believe that this is a temporary adjustment of inventory volumes with major customers. We are still seeing good development in Asia in general. In Germany, which is HMS single largest market, we see a mixed picture with a negative development among customers in the automotive industry but a positive development in other sectors.
The quarter has seasonally involved a large number of market activities and trade fairs, as well as a number of new product launches. Despite continued expansion in personnel and marketing activities, our cost increase is in balance with our growth. We therefore achieve a healthy operating profit of 63 MSEK, corresponding to 19 % operating margin.
We and our customers see continued concerns about availability of electronic components. We have managed to maintain a good delivery capability and a satisfying gross margin despite challenging component supplies. However, we see more and more examples of our customers being forced to postpone their planned deliveries due to a lack of electronic components. How much this has impacted our net sales is difficult to estimate. Our assessment is that this is a long-term capacity problem that will continue in 2019 and is likely become worse before it gets better. Therefore, we continue to work proactively to secure our component supply. We believe that the primary effect from the situation will be larger component inventories than normal. The situation may also have a certain effect on the gross margin, but for now the effect is expected to be limited.
The acquisition of German Beck IPC, that was made after the end of the quarter, will provide a complete technology base for Industrial Internet of Things (IIoT). With this we are strengthening our technology platform, we get a good offer for OEM applications and customers who want to store IIoT data locally ( on-premise ) as well as in the cloud. In addition to the technology, we strengthen our development organization with a strong team north of Frankfurt and about 50, mainly German, industrial customers using Beck IPC's products today. In the short term, this acquisition does not have a major impact on HMS profitability, but it is a strategically important strengthening in an area that we believe will be very important for HMS within a few years.
We stick to our ambitious growth targets for coming years A long-term annual growth of 20 % per annum and an operating margin of 20 %. Our focus is to drive continued growth in all our business areas. We continue to focus on our long-term growth goals based on a balanced view of our costs. In the long run, we estimate that the market for industrial data communications will constitute an interesting growth area and we continue to focus on our motto HMS Connecting Devices .
Halmstad July 19, 2018
Staffan Dahlstr m
Chief Executive Officer
Further information can be obtained from:
CEO Staffan Dahlstr m, telephone +46 (0) 709-17 29 01 or
CFO Joakim Nideborn, telephone +46 (0) 707-72 29 83
HMS Networks Q2 report 2018 (English)
LINK: | http://www.hms-networks.com/press/2018/07/19/hms-networks-interim-repo... |
See more stories from hms |
More from HMS
17/04/2024
HMS Networks completes a placement of 3,500,000 shares, raising proceeds of SEK 1,400 million
To read about the placement of shares, please confirm your location...
17/04/2024
HMS Networks explores the conditions to carry out a directed share issue of approximately SEK 1,400 million
To read about the directed share issue, please verify your country...
16/04/2024
Interim report 2024, January - March
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...
16/04/2024
HMS Networks realizes immediate cost synergies and launches cost saving program to streamline the organization
Following the closing of the acquisition of Red Lion Controls ( Red Lion ) on Ap...
08/04/2024
Chief Commercial Officer to leave HMS Networks
The Chief Commercial Officer (CCO), Hans Larsson, has today decided to leave HMS Networks for new challenges outside the company. Hans Larsson started as our ...
02/04/2024
HMS Networks and Red Lion Controls join forces for a stronger offering within Industrial Information and Communication Technology
Staffan Dahlstr m, CEO of HMS Networks at the Red Lion office in York, PA. HMS ...
18/10/2023
Interim report 2023, January - September
Third quarter Net sales for the third quarter reached SEK 789m (624), corresponding to an increase of 26%. Currency translations had a positive effect of SEK39...
22/08/2023
Welcome to HMS Networks' Capital Markets Day on September 12, 2023
HMS welcomes investors, analysts and media to a hybrid Capital Markets Day, Tuesday September 12 at 9 a.m. The Capital Markets Day will take place in Inderes s...
30/06/2023
Keeping the number one position for remote machine access and networking gateways!
HMS are happy to announce that American machine builders have chosen Ewon indust...
14/06/2023
HMS opens office in Vietnam
HMS Industrial Networks announces the opening of a new office in Ho Chi Minh City, Vietnam an initiative to further expand the growing Asian Market. Hans Lar...
05/05/2023
Industrial network market shares 2023
Continued growth for Industrial Ethernet and wireless networksEvery year, HMS Networks analyzes the industrial network market to estimate the distribution of ne...
17/04/2023
HMS Networks releases Anybus Diagnostics and Ewon i4connected/i4scada at Hannover Messe
At the Hanover Fair in Germany this week, HMS Networks presents two new importan...
06/02/2023
Enable energy savings with a complete smart thermostat solution from HMS Networks and Network Thermostat
The Intesis ST Cloud Control solution from HMS Networks combined with BACnet or ...
09/12/2022
HMS Networks AB (publ) acquires Control Specialists Ltd
HMS Industrial Networks Ltd, a wholly owned subsidiary of HMS Networks AB (publ), has today acquired all shares in Control Specialists Ltd, located in Mancheste...
15/11/2022
HMS is one of Sweden's Career Companies of the Year 2023
HMS Networks in Halmstad is one of the companies named Career Company of the Year 2023. This is an award for employers who offer unique career and development o...
19/10/2022
Interim report 2022, January - September
Third quarter Net sales for the third quarter reached SEK 624 m (472), corresponding to an increase of 32%. Currency translations had a positive effect of SEK ...
21/09/2022
HMS builds new Supply Logistics Center in Halmstad
At HMS headquarters in Halmstad, a state-of-the-art Supply Logistics Center (SLC) of 1,200 m2 is being built to handle incoming and outgoing goods. HMS Network...
09/09/2022
Expanding HMS Networks' industrial automation offering with Industrial Networking Solutions and MSI TEC
Industrial Networking Solutions (INS) and MSI TEC will be expanding their HMS Ne...
01/09/2022
An Evaled evaporator becomes the 400,000th machine connected to the Ewon Talk2M cloud
HMS Networks today announced that 400,000 industrial machines are now connected ...
10/08/2022
HMS promoted to Gold status in EcoVadis sustainability rating
HMS Networks has been awarded a Gold rating by EcoVadis the worlds most trusted provider of business sustainability ratings. EcoVadis assesses more than 90,00...
14/07/2022
Interim report 2022, January - June
Second quarter Net sales for the second quarter reached SEK 601 m (474), corresponding to an increase of 27%. Currency translations had a positive effect of SE...
01/07/2022
HMS Networks AB acquires Global M2M Pty Ltd
HMS Industrial Networks AB, a wholly owned subsidiary of HMS Networks AB (publ), has today acquired all shares in Global M2M Pty Ltd, located in Melbourne, Aust...
17/06/2022
The number one choice for remote machine access and networking gateways - Again!
American machine builders have chosen Ewon remote solutions as their top choice for remote machine access, and Anybus gateways as top choice for network protoco...
02/05/2022
Industrial networks keep growing despite challenging times
Industrial network market shares 2022 according to HMS Networks Every year, HMS Networks analyzes the industrial network market to estimate the distribution of ...
28/04/2022
Anybus Wireless Bolt LTE Expands the Wireless Solutions Range from HMS Networks
HMS Networks now introduces the Anybus Wireless Bolt LTE which connects industrial machines to a cellular LTE network in a robust, versatile, and easy-to-implem...
12/04/2022
HMS Networks AB (publ) acquires the remaining shares of Procentec B.V.
Pieter Barendrecht, CEO of Procentec B.V (left) and Staffan Dahlstr m, CEO of HMS Networks (right) on site in Rotterdam HMS Industrial Networks AB, a wholly ow...
14/03/2022
HMS presents communication solutions for Battery Energy Storage Systems
HMS Networks is now presenting several communication solutions for the rapidly expanding battery market. Battery Energy Storage Systems (BESS) require communica...
28/01/2022
5G Router from HMS Networks certified by Deutsche Telecom
Early last year, HMS released the first commercially available industrial 5G router optimized for industrial private networks. The new router is off to a flying...
26/01/2022
Year-end report 2021, January - December
Fourth quarter Net sales for the fourth quarter reached SEK 571 m (405), corresponding to an increase of 41%. Currency translations had a negative effect of ...
08/12/2021
HMS Networks AB enters into a strategic partnership with Connectitude
HMS Industrial Networks AB, a wholly owned subsidiary of HMS Networks AB (publ), has on December 8th entered into a strategic partnership with Connectitude and ...
27/10/2021
HMS and EroNkan leverage Ewon Flexy to offer IIoT solutions for efficiency improvements in manufacturing
HMS Networks and EroNkan Technologies are pleased to announce a seamless integra...
22/10/2021
HMS Q3 Report 2021
Third quarter Net sales for the third quarter reached SEK 472 m (345), corresponding to an in crease of 37%. Currency translations had a negative effect of S...
15/10/2021
HMS is A Great Place To Work
HMS Networks has been certified as A Great Place to Work an international standard for workplace evaluation. The criteria state that a good workplace is c...
12/10/2021
HMS is a signatory to the UN Global Compact
HMS has been accepted as a signatory of the United Nations Global Compact. The UN Global Compact is a network of over 13,000 companies and 3,000 non-business pa...
30/09/2021
HMS and Power Central leverage Ewon Flexy to offer a Unified ERP Solution for Food Packaging Businesses
Power Central, a systems integrator specializing in food packaging process optim...
14/07/2021
HMS presents its half-year report 2021 and updated financial calendar
Second quarter Net sales for the second quarter reached SEK 474 m (355), corresponding to an in crease of 33%. Currency translations had a negative effect of...
01/07/2021
HMS Networks AB (publ) acquires a majority of Owasys Advanced Wireless Devices S.L.
HMS Industrial Networks AB, a wholly owned subsidiary of HMS Networks AB (publ),...
15/06/2021
American machine builders name HMS Networks the number one choice for gateways and remote machine access
Control Design is one of the leading automation magazines in the United States. ...
08/04/2021
HMS Networks: Strong growth in the first quarter 2021
As a result of the order intake, net sales and operating profit exceeding market expectations for the first quarter of 2021, HMS Networks today publishes its pr...
31/03/2021
Continued growth for industrial networks despite pandemic
Industrial network market shares 2021 according to HMS Networks Every year, HMS Networks carries out a study of the industrial network market to analyze the dis...
03/03/2021
Ewon Flexy from HMS Networks Achieves ThingWorx Ready Status
HMS Networks launches new PTC Marketplace solution which enables users to bridge machine data to PTC's ThingWorx Platform using Ewon Flexy and the Talk2M ...
19/02/2021
HMS Networks releases the world's first industrial 5G router and starterkit
HMS Networks now releases the first commercially available industrial 5G router optimized for industrial private networks. The Wireless Router 5G supports Erics...
03/02/2021
Year-end report 2020, January - December
Fourth quarter Net sales for the fourth quarter reached SEK 405 m (346), corresponding to an in crease of 17%. Currency translations had a negative effect of...
19/11/2020
Procentec introduced new network diagnostics products at live virtual product launch
Procentec, the newest member of the HMS Group, has launched a new series of prod...
26/10/2020
HMS Networks presents its third quarter report and new financial targets
Third quarter Net sales for the third quarter reached SEK 345 m (377), corresponding to a decrease of 8%. Currency translations had a negative effect of SEK ...
20/10/2020
HMS Networks AB (publ) acquires remaining 25.1% of WEBfactory GmbH
HMS Industrial Networks AB, a wholly owned subsidiary of HMS Networks AB (publ), has acquired the remaining 25.1% of all shares in the German company WEBfactory...
01/10/2020
HMS Networks AB (publ) acquires a majority of Procentec B.V.
HMS Industrial Networks AB, a wholly owned subsidiary of HMS Networks AB (publ), has acquired 70% of all shares in the Dutch company Procentec B.V. Headquartere...
24/09/2020
Denison Technologies integrates HMS Networks' Edge Gateways into their Power Quality Monitoring Solution
Denison Technologies, Inc., and HMS Networks, Inc. are pleased to announce a sol...
08/08/2020
HMS Q1 Report 2020
First quarter Net sales for the first quarter reached SEK 361 m (380), corresponding to a de crease of 5%. Currency translations had a positive effect of SEK...