Haldex 3Q Earnings Mixed; Renews Ties to US Truck Makers
Commercial vehicle supplier Haldex AB reported net income fell and revenue inched up in the third quarter compared with a year earlier.
For the period ended Sept. 30, net income fell to the equivalent of $3.1 million, or 7 cents per share, compared with $4.4 million, or 10 cents, a year earlier, according to the Landskrona, Sweden-based company, which reports in krona.
Increased expenses were tied to responding to a takeover bid by Knorr-Bremse, and increases in research and development. Also, higher demand in the quarter led Haldex to add more shifts in some factories, plus deliveries had to be rescheduled at a higher cost.
A takeover process for Haldex began in July, 2016. About a year later, the company board announced it no longer supported the bid from Knorr-Bremse due to the low probability of approval by regulators. In September, Knorr-Bremse withdrew its bid.
Revenue rose to $130 million compared with $129 million in the 2016 period.
Sales in all of Haldex’s geographic regions increased in the quarter, led by Asia. However, despite growth in North America, Haldex did not successfully match the market improvement.
Nonetheless, Haldex signed a three-year contract with a U.S. truck manufacturer for both actuators and brake adjusters; the customer had been awaiting the outcome of the takeover process, according to Haldex. It also won back a U.S. truck customer who had chosen to buy brake adjusters from a competitor during the turbulent period Haldex was undergoing at the time.
Haldex manufactures commercial vehicle air disc brakes, brake adjusters and brake pads, plus air suspension control valves and air treatment products, among other items.
