Nibe has not yet managed to fully compensate for the sharp rise in prices of metals, according to the CEO of the heating technology company, in the report that reports on declining profitability.
Nibes vd Gerteric Lindquist believes it is gratifying to see the clear improvement in operating margin in Nibe's largest Climate Solutions business area, whose operating margin rose from 15.3 percent a year ago to 15.7 percent in the third quarter of this year.
The improvement is explained by Gerteric Lindquist, mainly due to organic growth, successful integration efforts and improved market conditions for heat pumps in the US as well as in several European countries.
"Still remains a part in terms of price-fixing fully compensate for the sharp price increases on materials, "said the Nibe boss.
For Nibe's Element business area, the slightly lower operating margin is explained – 10.4 percent compared with 12.3 percent a year ago – partly due to the fact that last year's first half included major project orders with a good operating margin and partly a slightly less favorable product mix.
The Stoves business area exhibited according to the Nibe boss, continued stable development, although the extremely hot weather in the spring and summer, especially in Europe, had a dampening effect on demand.
"The lower operating margin [10,5 procent mot 13,3 procent, red anm] is mainly explained by the fact that we are still not fully aware of the effects of price increases we had to implement due to the sharp price increases on our inputs. Even the increased development costs have a negative impact on the operating margin, "stated in the interim report.
Nibek Group's total operating margin amounted to 13.7 percent in the quarter, compared to 14.3 percent a year ago.
The copper price is currently just under $ 6,200 per ton. In the first half of this year the price was over $ 7,000.