Interim Report Q3, 2017
Continuous growth of ongoing business with strong gross margin
An important part of the growth strategy at JLT is to continuously strengthen our international network of resellers. Overall sales comprise a steady flow of business, which is supplemented by a smaller number of major, high-volume orders with somewhat lower margins. With a growing partner network, we establish JLT on the global market and expand the customer base, which in turn increase the ongoing business with a stable margin. We are now starting to see results from this strategy. Ongoing business is growing continuously with a strong gross margin. During the third quarter the gross margin increased from 44% compared to 42% in the same period last year, despite negative impact from a decreased USD rate. With strong gross margin and good cost control the operating margin increased to 9.4% from 9.3% the same period last year. Operating profit was 8.0 MSEK, to be compared with 8.6 MSEK last year.
In September JLT reached a significant milestone in its history as the 100,000th unit since the start in 1994 was delivered. The 100 000th unit was part of a bigger order to Volvo Car Body Components, to emphasise JLT’s promise of delivering top quality the celebratory unit was supplied with an exclusive 100,000‑hour warranty, equivalent to over 4,000 days — or 11 years.
As been previously announced, there was several new hires within sales and development in the past quarter. This has been a very good addition to the organization. With new products and a stronger organization, we continue to drive a long-term profitable growth.
Per Holmberg, CEO
Read full Interim Report for Q3, 2017 (Swedish) »