SWECO AB (publ) Year-end report 2006
Strong earnings and powerful growth
• Operating profit improved by 33 per cent to SEK 361.9 (271.6) million.
• Operating margin was 9.3 (8.1) per cent.
• Net sales increased by 16 per cent to SEK 3,894.7 (3,372.2) million.
• Profit before tax totalled SEK 364.4 (351.2) million.
• Profit after tax was SEK 258.3 (274.1) million, equal to earnings per share of SEK 15.02 (15.88). Net financial items for the previous year included a one-time item of SEK 79.8 million, equal to SEK 4.72 per share.
• The Board proposes a dividend of SEK 7.50 per share, a redemption procedure corresponding to SEK 8.50 per share and a 5-for-1 share split in which each existing share will be split into five new shares.
Comments from CEO Mats Wäppling:
“SWECO has continued to grow with strong profitability and in 2006 delivered the strongest performance in the company’s history. Operating profit for the full year improved by 33 per cent and operating margin reached 9.3 per cent.
“We have advanced our positions in the Nordic market, for example in the energy segment, and our acquisitions in Estonia and Lithuania have created a solid platform for ongoing growth in Eastern Europe. Today SWECO is by far the leading player in the Baltic region, where demand for our services is growing steadily. In the Baltic and St. Petersburg area, SWECO now has a total of 500 consultants active in the areas of water and environment, infrastructure, architecture, structural engineering and building service systems.
“We have a very solid financial position. After the proposed dividend our equity/assets ratio is 32 per cent, providing excellent scope for continued development of SWECO.
“SWECO is striving for sustained profitable growth through more intensive targeting of the Nordic market and expansion of operations in the growth markets of Eastern Europe. Demand for SWECO’s services is currently strong and the outlook for 2007 is bright.”