Granges AB
F:9GR
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Granges AB
Standing tall in the realm of rolled aluminum products, Gränges AB has carved a niche for itself by blending a rich legacy with cutting-edge innovation. Born out of Swedish industrious spirit, Gränges started its journey in the late 19th century and has since evolved into a global powerhouse, specializing in advanced aluminum engineering. The company's forte lies in the production of high-performance aluminum materials primarily used in the automotive industry, which constitutes the backbone of its revenue generation. Gränges's specialized aluminum solutions play a pivotal role in enhancing vehicle efficiency by reducing weight and improving thermal and electrical conductivity. This focus on sustainable, lightweight solutions sets Gränges apart, aligning seamlessly with the global automotive industry's shift towards greener technologies.
This specialization in automotive applications is supplemented by Gränges's strategic alignment with a variety of other industries like HVAC, packaging, and electronics. Gränges's operations are spread across the globe, with manufacturing plants in Europe, Asia, and the Americas, ensuring a robust and flexible supply chain that feeds into its customer-focused model. The key to Gränges's financial success lies not only in its diversified client base but also in its commitment to continuous innovation and sustainable practices. Through relentless R&D efforts, Gränges develops new alloys and manufacturing processes, positioning itself as more than just a supplier but a strategic partner in its customers' quest for sustainable growth and efficiency enhancement. The company's financial performance thus thrives on its ability to marry quality with innovation, keeping its finger on the pulse of an ever-evolving industrial landscape.
Standing tall in the realm of rolled aluminum products, Gränges AB has carved a niche for itself by blending a rich legacy with cutting-edge innovation. Born out of Swedish industrious spirit, Gränges started its journey in the late 19th century and has since evolved into a global powerhouse, specializing in advanced aluminum engineering. The company's forte lies in the production of high-performance aluminum materials primarily used in the automotive industry, which constitutes the backbone of its revenue generation. Gränges's specialized aluminum solutions play a pivotal role in enhancing vehicle efficiency by reducing weight and improving thermal and electrical conductivity. This focus on sustainable, lightweight solutions sets Gränges apart, aligning seamlessly with the global automotive industry's shift towards greener technologies.
This specialization in automotive applications is supplemented by Gränges's strategic alignment with a variety of other industries like HVAC, packaging, and electronics. Gränges's operations are spread across the globe, with manufacturing plants in Europe, Asia, and the Americas, ensuring a robust and flexible supply chain that feeds into its customer-focused model. The key to Gränges's financial success lies not only in its diversified client base but also in its commitment to continuous innovation and sustainable practices. Through relentless R&D efforts, Gränges develops new alloys and manufacturing processes, positioning itself as more than just a supplier but a strategic partner in its customers' quest for sustainable growth and efficiency enhancement. The company's financial performance thus thrives on its ability to marry quality with innovation, keeping its finger on the pulse of an ever-evolving industrial landscape.
Strong Volume Growth: Gränges delivered 25% year-on-year sales volume growth in Q3, driven mainly by market share gains and the Shandong acquisition, even as underlying demand remained weak in key sectors like HVAC and automotive.
Profitability Impacted by Currency: Operating profit reached SEK 398 million, down 5% from last year due to SEK 43 million in negative currency effects, though profit was up 5% in constant currency.
Cash Flow Strength: Operating cash flow was robust at SEK 317 million despite rising metal prices and increased working capital; management sees potential for sustained improved cash generation as expansion CapEx winds down.
Asia & Shandong Ramp-Up: Gränges Asia posted 88% volume growth (to just under 50,000 tonnes), largely thanks to the Shandong facility, which is meeting expectations and gradually improving profitability.
Cost Headwinds from Scrap: Higher aluminium scrap costs, particularly in Europe and the Americas, pressured margins, with Q3 earnings impacted by over SEK 40 million from this factor alone.
Guidance for Q4: Management expects continued strong volume growth in Q4, with high single-digit growth in Europe and Americas combined, and aims to offset ongoing negative currency and cost effects with volume, price, and productivity.