Press Releases

08. May 2020

Interim Financial Report January – March 2020

The first quarter of the year started a bit better than our expectations. Demand in January and February was at a slightly higher level than the last quarter of 2019. However, this abruptly changed as the pandemic Covid-19 came into full force and lead to halted production at our major customers in the commercial vehicle and passenger car segments towards the end of March.

Our focus has been to secure the health and safety of our employees and partners. We are also safeguarding the production in order to be able to deliver when and where our customers have demands.

The outbreak of the pandemic makes it impossible to forecast the financial development for the near future. We are closely monitoring the development day by day. Our current focus is to safeguard liquidity and to take actions to reduce the impact of the Covid-19 situation both when it comes to our personnel and to our business.

LEAX Group fulfilled the covenants for the first quarter and its other obligations in relation to the bonds (ISIN: SE0011088954) issued by the company. However, we will most likely have difficulties to do so in the coming quarters. Therefore, LEAX Group and our advisers will reach out to certain major bondholders in the near term to discuss potential amendments and waivers to the bond terms. A formal written procedure where all bondholders will be able to vote on the proposals will follow shortly after such discussions.

Summary of the first quarter of 2020

  • Net Sales amounted to SEK 421,8 million (505,6)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 47,5 million (47,5)
  • Earnings before tax (EBT) increased to SEK 19,3 million (19,0)
  • Profit margin before tax (EBT%) increased to 4,6% (3,7%)
  • Cash flow from operating activities increased to SEK 30,1 million (28,2)
  • Net income for the period increased to SEK 19,3 million (17,6)

About LEAX:
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 200 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 company is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger cars, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. 


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