LEAX publish Annual Report for 2022
In summary, 2022 has been a very challenging year for LEAX, ranging from uneven volumes to inflation. However, we have seen stable growth compared to 2021 and look forward with confidence to 2023.
Operating profit for 2022 decreased to SEK 2.3 million (58.8) driven by zero lead time order delays at key heavy commercial vehicles and passenger car customers. Inflationary costs and the delayed timing of cost recovery also had an impact. Furthermore, the Group profitability was directly affected by lower production volume for passenger cars where the China Covid policy forced a significant customer to shut for several weeks.
During the fourth quarter LEAX has reorganised its entities to better reflect its operating environment. In connection to this, an adjustment was also made to the values of the entities, which also resulted in a dissolution of deferred taxes on group level. As a result, net income for the year was affected by a one-time increase in income taxes.
Our business outlook remains difficult to forecast with the macroeconomic uncertainty that characterizes the global economy. The instability of the global supply chain has been in many ways unprecedented and the fallout from higher input costs including energy will continue to disrupt our industry. Despite this uncertainty we see continued sales growth and a clear path toward improving our profitability. Our capital expenditures in the range of SEK 100 million in 2022 continue to reflect the confidence our Board has in our ability to execute our strategy of providing sustainable value for all LEAX stakeholders.
I would like to acknowledge our team and business partners for their commitment, professionalism and effort throughout a year that presented multiple challenges. Despite these challenges we have continued to develop people, process, and drive performance. In 2022 we have strengthened our equity highlighted by the SEK 300 million that AMF entrusted in LEAX. Our commitment to exceed our customers’ expectations was rewarded by winning two supplier of the year awards and being rewarded with a strengthened business pipeline.
Our vision of being a leader within our industry remains in our line of sight. We believe that solid execution with increased agility and flexibility is the key to future success in managing the conditions that we face.
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 designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 1.9 billion in 2022.