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BRIEF-Haldex Q2 core profit dips, sees lower margin in 2017
July 18, 2017 / 5:28 AM / 4 months ago

BRIEF-Haldex Q2 core profit dips, sees lower margin in 2017

July 18 (Reuters) - Haldex AB

* Q2 net sales, SEK 1,184 mln vs yr-ago 1,147 mln

* Q2 operating income excluding one-off items totaled SEK 78 vs yr-ago 87 mln

* Says during Q2, market continued to be positive and haldex experienced strong growth in europe

* Says however, growth in north america was slightly weaker, and as a whole haldex’ growth is somewhat weaker than in marke

* Says quarter continued to be burdened by bidding process, which draws focus and resources away from core operations.

* Says market in north america has improved, but haldex has not been able to fully benefit from this upswing, primarily due to uncertainty surrounding haldex’ situation

* Says uncertainty created by bidding situation is affecting our ability to sign long-term contracts

* Says in short-term, customers are not terminating signed contracts, but we are hurt during negotiations of future contracts, i.e. contracts that will create growth for haldex in coming years

* Says we still have an opportunity to win a number of contracts where our creative solutions have kept us at negotiating table, but with each month that passes chances are shrinking and soon window will be closed for a number of years in future

* Says an extension of bidding process by only a few months therefore risks impairing haldex’ ability to grow over next few years

* Says operating margin for 2017 is forecast to be slightly lower than in 2016 Source text for Eikon: Further company coverage: (Reporting By Johannes Hellstrom; editing by Niklas Pollard)

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