Published on February 2, 2018 at 8:01 AM CET.
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During the fourth quarter the strategic review of our operations in France has continued and production in South Africa has been closed, as previously decided. The quarter’s sales were lower than in the previous year, but order intake developed favourably, which means that the Group will enter 2018 with a stronger order book than 2017.
During the fourth quarter, sales decreased compared to the fourth quarter of 2016. This is mainly a consequence of weak sales to banks in India and South Africa and the effect of a large Entrance Control order delivered in quarter four 2016 in Europe.
Sales in Region EMEA fell in the fourth quarter. Order intake, on the other hand, developed positively and the Group continues to develop the business with existing customers as well as new customer segments. For example, pre-boarding gates from Gunnebo will be installed at Munich Airport and Coop will continue to turn to us to service the cash management solutions it has installed in stores across the Nordic region.
Sales in Region Asia-Pacific decreased in the quarter mainly due to the continued weak development of the public banking market in India, which was amplified by weak sales of ATM safes.
However, Region Asia-Pacific had a strong order intake in the fourth quarter. Gunnebo received its first major order in India for ticket gates for the metro network in one of the country’s major cities and, Incheon Airport in Seoul, South Korea, chose entrance security solutions from Gunnebo. Both of these orders demonstrate how Gunnebo is shifting its customer segment focus in the region.
Region Americas also had lower sales in the quarter, where development was good in Brazil and unchanged in Mexico. In North America, sales weretemporary weaker due to slow business in bank projects.
One noteworthy order received during the quarter came from Brazil, where several large international food retailers chose Gunnebo’s warehouse solutions to be gradually installed in their stores around the country. In the United States, Gunnebo delivered entrance security solutions to the Empire State Building in New York.
In terms of product areas, the positive sales development within Cash Management has continued in the fourth quarter.
In Entrance Security, sales have remained unchanged at a high level during the quarter.
Safes & Vaults developed weakly during the quarter, due to lower sales of safes to global ATM manufacturers and the continued low demand from banks in several markets.
In Electronic Security, sales were unchanged during the quarter, which is an important improvement against the decline earlier in 2017.
For the quarter, we reported an operating profit excluding items affecting comparability of MSEK 134 and an operating margin of 8.2%.
For the full year, we reported an operating income excluding items affecting comparability of MSEK 369 and an operating margin of 6.2%.
Work on continuing to improve our business in line with our strategy for profitable growth continues. During the year, we have also conducted a review and prioritisation of our product areas in respect to range, which will further strengthen our focus on customers and delivery.
Henrik Lange, President and CEO