Haldex Reports Higher Earnings, Revenue as Markets Rebound
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Braking and air suspension systems provider Haldex reported positive net income and a 30% gain in revenue for the second quarter, ended June 30.
Net income for the Swedish-based company, which reports in krona, was the equivalent of $6.21 million, or 13 cents per share. That compared with a loss of $15.9 million, loss of 34 cents, a year earlier.
The company’s return on capital was 8.3% compared with negative 6.4% a year earlier.
Desire
Revenue was $130.9 million compared with $100.6 million a year earlier.
Haldex reported strong organic sales growth in the Americas region and Europe, while Asia reported a negative growth — with trucks and trailers improving by a larger amount than did the more stable aftermarket segment.
In the period, the company noted it secured an agreement with one of the world’s largest manufacturers of heavy trucks for its air disc brake product.
“The deal is an important milestone to grow in the truck segment besides our excellent position in the trailer market,” Haldex CEO Jean-Luc Desire said in a statement. “In particular we would like to mention the strategic importance of an embedded additional agreement to equip and showcase a truck with our new electromechanical brake product. This breakthrough of introducing our next-generation product on the European market strengthens our confidence in our market opportunities and ability to meet new demands on braking systems in connected, electric trucks and trailers.”
He added: “Our key focus on electrification and our EMB product has proved successful. We are in close dialogue with several key original equipment manufacturers in Europe and are seeing increasing interest in the United States. I am also pleased to report that our EMB product has successfully passed validation through homologation [regulatory approval] with a customer in China. These are significant steps for EMB which will build confidence in this system with more customers.”
As for the outlook, Desire said many uncertainties remain after the second quarter saw rising prices for commodities, semiconductors and freight.
“From the third quarter onwards, we expect to mitigate large parts of the additional costs in terms of increased material costs by adjusting raw material prices between our suppliers and customers,” Desire said. “We estimate that increased freight costs will continue throughout the year. However, there is great uncertainty about these external factors and we are following market developments closely.”
Landskrona, Sweden-based Haldex reported it has 2,200 employees working on four continents. Its North American headquarters is based in Kansas City, Mo.
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