Press Releases

11. November 2021

Interim Financial Report January – September 2021

Solid demand and good performance

Market recovery has continued during the first nine months of 2021. However, supply chain challenges have impacted our Q3 sales. Demand for LEAX products and services remained strong across all our end markets.

During quarter three we had to reduce production volumes due to short notice stoppages at key customer production locations. This led to slightly lower sales primarily in the Commercial Vehicle segment with Q3 revenue coming in at SEK 365.0 million (298.4). Our revenue still represented an increase over Q3 2020 of 22.3% and reflects the underlying demand for our products. With our production flexibility and ability to reduce cost we have managed to deliver solid earnings with an adjusted operating profit before depreciation (Adjusted EBITDA) of SEK 34.7 million (17.3) which is a significant improvement from the same period in 2020. Solutions to supply chain disruptions including but not limited to the semiconductor shortage are not entirely in place at this time. LEAX will continue to rely on and continuously improve our flexible production systems and agile supply chain management to maintain service levels and protect our bottom line during this turbulent period.

A significant investment cycle that started already in 2018, to help diversify our customer base and the end markets we serve, has finalized during the first nine months of this year. Two key passenger car programs, running across three of our global facilities, are now in full and stable production. As a result, we are seeing the segment mix shift we desired, financial improvements and as expected better cashflow from operations.

Throughout 2021 and specifically in Q3 our investments in our precision gear and component strategy have started to deliver on expected outcomes. Our aim is to enable our customers to reduce their time to market while increasing our competence in taking components from 3D models through to serial production. Our rapid prototyping capabilities have led to multiple new customer prototype orders in e-mobility. These business wins underpin our goal of further developing LEAX presence in electrification.

Short-term outlook remains healthy across all sectors, but we remain vigilant and thus ready to react to the continuing volatility within the supply chain.

Summary of the third quarter of 2021

  • Net Sales amounted to SEK 365.0 million (298.4)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 34.7 million (17.3)
  • Earnings before tax (EBT) improved to SEK -10.2 million (-18.1)
  • Profit margin before tax (EBT%) amounted to -2.8% (-6.1%)
  • Cash flow from operating activities decreased to SEK -39.4 million (8.1)
  • Net income for the period improved to SEK -10.5 million (-12.4)

This disclosure contains information that LEAX Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 11-11-2021 08:30 CET.

About LEAX

LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The Group is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger car industry, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group had a turnover of SEK 1,5 billion in 2020.


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