SECOND QUARTER - STRONG DEMAND AND IMPROVED PROFITABILITY 
We can look back on a good second quarter with high levels of activity and strong overall demand. Total sales increased by 8 percent, of which 2 percent was organic, with growth being strongest in the Automation and Electrification business areas. EBITA increased a total 17 percent, corresponding to a margin of 16.7 (15.5) percent. A non-recurring effect in the Safety business area had a positive impact of around SEK 55 million on the quarter’s EBITA. We report a P/WC of 82 percent (77) and note once again that our strong positions in attractive niche technologies, alongside favourable performance across the companies and a well-filled pipeline, continue to drive profitable growth.

MARKET TREND
Overall, the Group’s market situation was strong, driven largely by the continued high rate of investment in electrical infrastructure, electrification, defence and data centers. Demand for infrastructure products for national and regional grids developed strongly over the quarter, while sales faced tough comparisons with the previous year. Overall, the market situation in the mechanical industry, medical technology and electronics segments developed favourably over the quarter, while companies exposed to forestry and parts of the process industry were negatively affected by continued caution among customers. The business situation in special vehicles, transport and data centers was favourable, while the traffic safety and subsea segments experienced a weaker quarter. The market situation in building and installation remained weak. From a geographical perspective, the business climate was generally favourable in Finland and Denmark, while it was weak in Norway and Sweden. For our companies outside the Nordic region, the business climate was generally strong. Cash flow from operating activities amounted to SEK 717 million (859) for the quarter, a decrease attributable to an increase in working capital tied up in the operations as a result of increased order intake and invoicing. 

ACQUISITIONS 
We continue to attract well-run and high-performing companies that strengthen our niche strategies in strategically selected markets. A total of four companies were acquired over the financial year, with a combined turnover of SEK 500 million and strong profitability. In the second quarter, UK-based RTL Materials was acquired. Under the Rolatube brand, it develops and manufactures patented rollable composite structures and deployable mast systems for demanding applications, primarily within the defence sector. After the end of the period, one additional UK acquisition was completed: Mechanical Power Transmission, a manufacturer of custom-engineered gears, transmissions and mechanical driveline components. The acquisition climate is favourable and, with a well-filled pipeline and strong balance sheet, we believe our prospects for a continued high pace of acquisitions are favourable.