A solid Lesjöfors defies the recession

2009-02-12 2008 was a successful year for Lesjöfors. The recession has of course put its marks in the order bookings, but nevertheless Lesjöfors has a strong market position.
- Our wide range in business makes us less vulnerable than other industrial companies, CEO at Lesjöfors, Kjell-Arne Lindbäck, says.

Lesjöfors operations are conducted in three primary business areas – Industrial Springs, Flat Strip components and Chassis Springs (aftermarket for passenger cars and light vehicles). All three business areas act in a wide spread of industries and geographic areas. Therefore Lesjöfors is less sensitive for changes in the business cycle.
- Our business spread combined with our knowledge and skills makes us an attractive partner for our customers. We can offer support throughout the production chain – from concept, design and production to subsequent support service, Mr Lindbäck says.

Successful acquisitions increases sales volumes
All three business areas has developed positively in 2008. One of the main investments was the acquisition of Stece Fjädrar in Mönsterås, a producer of amongst others springs for heavy vehicles. The recession affected Stece negatively in the last quarter of 2008, but the market will recover not before long, estimates Mr Lindbäck.
   Also in the UK Lesjöfors has been successful, due to the acquisition of European Springs. European springs will also play an important role for our expansion plans in Central Europe.
- We have also a positive development in the Chinese market with increased manufacturing volumes to telecom industry, Mr Lindbäck says.

Measures for increasing sales volumes
The recession in economy with a substantially weakened industrial business cycle, was of course noticed in Lesjöfors order bookings.
- We had to adjust to the current market situation and cut costs, which unfortunately meant cut backs in personnel in some areas. After these measures the costs are now balanced and we are solid for the future, Mr Lindbäck says. We also count on further expansion of our business area chassi springs for the aftermarket where we have had a very good development in the UK, Germany and several other markets for many years.
To increase sales volumes, Lesjöfors has reorganized to put as much staff as possible in sales activities.

Expansion is to come
CEO Lindbäck anticipates a bright future:
- Even if I think we will experience recession for another time to come; our customers, employees and share holders can have good expectations. Lesjöfors is a solid company with good finances, endurance and favourable spread in business. Lesjöfors will expand and step by step win shares of the market. Notice, that about one third of the company is growing, despite of the current recession in industry.

KAL

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