INTERIM REPORT JANUARY-MARCH 2017
The divestment of the German engineering business was completed on February 28. Against this background, we introduced a new organisational structure whereby Semcon’s business areas within engineering services were merged into one business area, Engineering Services. This means that Business Area Engineering Services International, with operations in Brazil, India and the UK, formed a new business area together with Engineering Services Nordic. By merging Semcon’s engineering services into one business area, we create an efficient organisation that will result in even closer collaboration and knowledge sharing between our markets and divisions, something that will benefit our customers.
In the first quarter, we reported healthy organic growth of 11 per cent and an operating profit that has doubled compared with last year. Both Engineering Services and Product Information reported significant improvements in earnings. Following the divestment of the German engineering business, the financial position is very good and the net cash amounted to SEK 142 million at the end of the quarter. We can see good prospects for organic growth, but are also evaluating potential acquisitions that can complement our offering.
We continue to demonstrate our technical expertise and creativity with the launch of new and innovative products developed by us, such as PAW (Proactive Wipers). This software registers at an early stage when windscreen wipers need to be activated and are expected to be highly useful in autonomous vehicles.
In 2016, Semcon took an important step towards becoming an equal-opportunities company with the launch of our equal-opportunities objectives. The overall aim is to be an equal-opportunities company by 2022 (40/60 gender balance). Work continued in the first quarter to get more girls in upper secondary school to choose technology programmes at university. We therefore started a mentoring program together with some thirty upper secondary schools across Sweden, whereby female employees at Semcon act as mentors.
Demand is expected to remain good in the second quarter. Normally, the second quarter is the weakest in terms of results and this year will also be negatively impacted by three fewer working days compared with the same quarter last year. With a stronger financial position and a more efficient organisational structure, we are in a good position to grow and to continue improving our profitability.
• The operating income amounted to SEK 475 Million (434) and the organic growth was 11 per cent
• The operating profit amounted to SEK 40 Million (20), yielding an operating margin of 8.5 per cent (4.7)
• The profit after tax amounted to SEK 30 Million (16)
• Earnings per share (EPS) after dilution amounted to SEK 1.67 (0.89)
• The equity/assets ratio amounted to 56 per cent (49)
Income and result
Operating income amounted to SEK 475 million (434). Adjusted for currency effects, acquisitions and divestments, income increased 11%. The quarter had three more working days compared with last year, which accounted for about 5% of the increase. Operating profit amounted to SEK 40 million (20), yielding an operating margin of 8.5 per cent (4.7). Both Engineering Services and Product Information reported improvements in earnings, in part due to increased income resulting from more working days in the quarter. Net financial items amounted to SEK - million (-), yielding profit before tax of SEK 40 million (20). The tax expense for the quarter amounted to SEK -10 million (-4). Profit after tax amounted to SEK 30 million (16) and earnings per share after dilution was SEK 1.67 (0.89).
Operating cash flow from current activities was SEK 49 million (-16). Investments in hardware, licenses, office supplies and equipment amounted to SEK 4 million (22). The Group’s cash and cash equivalents amounted to SEK 173 million (44). In addition, the Group had non-utilised credit of SEK 342 million (271) as of March 31. Shareholders’ equity amounted to SEK 560 million (619) and the equity/assets ratio was 56 per cent (49). The Group’s net cash (net debt) amounted to SEK 142 million (-119).
The head count on March 31 was 2,077 (1,987) and the number of employees in active service was 1,978 (1,912). In the respective business areas the head count is as follows: Engineering Services 1,465 (1,433) and Product Information 612 (554).
This information is information that Semcon AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication at 12.15 CET on April 26, 2017.
For more information, please contact:
Markus Granlund, CEO Semcon AB +46 31-721 03 06
Björn Strömberg, CFO Semcon AB +46 31-721 03 06
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, life science and telecom sectors. With more than 2,000 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 semcon.com.