Swedish investment group Lifco on Monday reported a 2.8% drop in second-quarter core earnings, citing a deteriorating market for its largest division, Systems Solutions.
Earnings before interest, taxes, and amortization (EBITA) for the April-to-June period fell to 1.56 billion Swedish kronor from 1.61 billion kronor a year earlier, the company said.
Net profit for the quarter declined 3.8% to 880 million kronor.
"The lower organic growth during the second quarter was primarily due to the deteriorating market situation in large parts of Systems Solutions," Chief Executive Per Waldemarson said in a statement.
The company said the division, which provides products for industries including environmental technology and infrastructure, saw negative organic performance in most of its units.
A negative product mix also impacted profitability in the Demolition & Tools and Systems Solutions business areas, according to the company.
For the first half of the year, net profit grew 6.7% to 1.72 billion kronor, while sales rose 9.0% to 13.88 billion kronor.
Lifco, which grows by acquiring and developing niche businesses, said it consolidated seven new companies in the first half with combined annual sales of about 800 million kronor and has announced two more acquisitions for the third quarter.
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