From the Managing Director
Positive news for VBG GROUP TRUCK EQUIPMENT
It feels good to observe that the market has begun its long, slow climb back up to more normal levels. Even though this will probably take time, there is no doubt that the market is once again growing, slowly but surely, in most segments.
Another very important bit of news we got during the first quarter was that the far-reaching restructuring programmes that were carried out during 2009 in the production and supply chain have now resulted in a lower break-even level, better flexibility and thereby potentially better operating margins even at lower volumes. As always when big changes occur, some running-in and fine adjustments remain to be done in the processes that have been relocated from Germany to Sweden (new coupling factory) and from Belgium to the Czech Republic (new plant for sliding roofs). We also view this work of refining our processes as a natural part of the organisation’s constant improvement work.
A consolidated and stronger RINGFEDER POWER TRANSMISSION
Last year was dominated by extensive efforts to incorporate the acquired Gerwah Group. At the same time, the market was adversely affected by the global financial crisis. The last three quarters of last year saw declining turnover and a low operating margin.
It is gratifying to note that we have now managed to create a consolidated, stronger business area. The turnover figures for the first quarter show a recovery, and the operating margin is once again above 15 per cent.
2010 - an exciting year of growth and profits
I view the future with confidence and look forward to continued growth and an upward earnings trend in 2010. It is, however, difficult to predict the rate at which the recovery will occur in the different markets. I persist in my previous judgement that the growth rate will probably be low during the first six months, increasing somewhat in the latter part of 2010.
Our long-range focus and the far-reaching changes that have been implemented during the past year within the Group’s two business areas have created good prospects for the future.
During 2010 we will continue to be restrictive on the cost side, and in both business areas we will focus on reducing tied-up capital and thereby securing and further improving liquidity, which is already good. High priority is also being given to further aggressive efforts in product and market development within both VBG GROUP TRUCK EQUIPMENT and RINGFEDER POWER TRANSMISSION.
When it comes to structural growth in the form of acquisitions and corporate start-ups in new countries, this work will continue according to previously established strategies.
Anders Birgersson
Managing Director and CEO
Managing Director and CEO
