Increased sales and profit improvement

Quarterly report January - March 2011

•  The operating income was SEK 596 million (521) and organic growth was 19%

•  The operating profit was SEK 42 million (-5) giving an operating margin of 7.0% (-0.9)

•  The profit after tax was SEK 28 million (-5)

•  Earnings per share after dilution was SEK 1.55 (-0.26)

•   The equity/assets ratio was 34% (33)

The positive trend we have seen since the second half of 2010, with an improved market position and greater utilization, continued in Q1. This has led to increased sales and a good profit. The sound state of the market means that we have a great need to recruit on all markets. Our outlook for 2011 is positive and we expect further profit improvements.

Kjell Nilsson, President and CEO

Income and results
Operating income rose by SEK 75 million compared to last year and amounted to SEK 596 million (521). Sales in local currencies rose by 19%. The sales growth is a result of the better state of the market compared to Q1 2010 and has led to a higher utilization rate in all business areas. 

The operating profit improved by SEK 47 million and amounted to SEK 42 million (-5) giving an operating margin of 7.0% (-0.9). The improvement has mainly come from greater sales volumes. All business areas showed sound profit improvements and the operating margin for Automotive R&D was 2.6% (-5.6), Design & Development 11.2% (3.3) and Informatic 13.5% (5.7).

Net financial items amounted to SEK -3 million (-2) giving a profit before tax of SEK 39 million (-7). Tax costs for the year stood at SEK -11 million (2). The profit after tax was SEK 28 million (-5) and the earnings per share after dilution was SEK 1.55 (-0.26).

Financial position
The operating cash flow from current activities was SEK -4 million (-24). The Group’s cash and bank balances amounted to SEK 29 million (30) with additional non-utilized credit of SEK 101 million as at 31 March. The Group’s credit agreement consists of an overdraft facility of SEK 100 million and a revolving credit facility of EUR 32.8 million which runs until July 2011. There is an option available for the company, before the due date, to extend the revolving credit to a three-year loan.

Investments in hardware, licenses, office supplies and equipment, amounted to SEK 6 million (5).

Shareholders’ equity amounted to SEK 399 million (377) and the equity/assets ratio was 34% (33). The Group’s net debt was SEK 315 million (302) and the debt/equity ratio was 0.8 times (0.8).

Events during Q1
•  Semcon signed an agreement with Stricent AB regarding taking over the company’s consultancy business. The agreement means that Semcon’s activities in developing pharmaceuticals and med-tech products, has been strengthened by 8 people.

•  Semcon Germany has opened an office in Sindelfingen and thus strengthened its presence near its customer Daimler Cars.

Staff and organization
The headcount on 31 March was 2,789 (2,626) of which 1,466 (1,490) were in Sweden and 1,323 (1,136) abroad. The number of employees actively employed was 2,663 (2,481). Compared with 31 December 2010 the number of employees has risen by 86, of which 34 in Sweden and 52 abroad.

The number of employees in the respective business areas was: Automotive R&D 1,609 (1,467), Design & Development 783 (803) and Informatic 397 (356).

We have seen a clear improvement in the market situation since the second half of 2010. The good state of the market means that we have a major need to recruit on all markets. The outlook for 2011 is positive and continued profit improvements are expected.

Kjell Nilsson, CEO Semcon AB, +46-31-721 03 11
Björn Strömberg, CFO Semcon AB, +46-708-35 44 80
Anders Atterling, IR manager Semcon AB, +46-704-47 28 19

Semcon is a global company active in the areas of engineering services and product information. The Group has around 2,800 employees with extensive experience from many different industries. We develop technologies, products, plants and information solutions along the entire development chain and also provide many services including quality control, training and methodology development. Semcon boosts customers’ sales and competitive strength by providing them with innovative solutions, design and solid engineering solutions. The Group has sales of SEK 2.1 billion and activities at more than 40 sites in Sweden, Germany, the UK, Brazil, Hungary, India, China, Spain and Russia


About Us

Semcon is an international technology company that develops products based on human needs and behaviours. We strengthen our customers’ competitiveness by always starting from the end user, because the person who knows most about the user’s needs creates the best products and the clearest benefits to humans. Semcon collaborates mainly with companies in the automotive, industry, energy and life science sectors. With more than 2000 specialised employees, Semcon has the ability to take care of the entire product development cycle, from strategy and technology development to design and product information. Semcon was founded in Sweden in 1980 and has offices in over 30 locations in eight different countries. In 2016, the Group reported annual sales of SEK 1.8 billion. Read more on


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