Interim Report January-September 2000 from

Interim Report January-September 2000 from AB Ångpanneföreningen (publ) * Strong third quarter SEK 20 (6) million * Operating profit, excluding SPP refunds, doubled to SEK 59 (30) million * Profit after net financial items, including SPP refunds, was SEK 303 million * Turnover rose by 3 percent to SEK 1,200 (1,163) million * Net worth SEK 111 (75) per share Demand for ÅF Group services continued to improve during the third quarter compared with the corresponding period in 1999. Some improvement was also noted for energy and process technology projects towards the end of the period. Capacity utilisation rose successively during the reporting period from 64 to 71 percent and averaged 69 (69) percent for the year. Profit for the Group's consulting operations showed a considerable improvement. September saw the Group reporting its best monthly profit ever. Projects within technical and administrative IT services continued to increase, which had a positive impact primarily on Software, Electronics & Mechanical Engineering. This business area's turnover rose by almost 20 percent and the profit margin hit 11 percent. Although Inspection & Testing generated a loss, this was less than half that in the corresponding period in 1999. The business area continued to increase its market share despite a reduction in capacity. The present value of the SPP refunds to ÅF of SEK 299 million had previously been calculated at SEK 257 million. One of the assumptions made in this calculation was that the PRI pension commitments of SEK 105 million will be redeemed during the year. The final decision on any redemption of these commitments will be taken by the company's board before the year-end. Turnover rose to SEK 1,200 (1,163) million. The lion's share of this rise is again attributable to operations in Software, Electronics & Mechanical Engineering, a development well in line with the ambition to increase the significance of this business area relative to the ÅF Group as a whole. Energy, Environment & Process Technology reported a drop in turnover as a result of the weak market. The operating margin, excluding SPP refunds, was 4.9 (2.6) percent, compared with 3.1 percent for the whole of 1999. Order stocks rose to SEK 476 (412) million. The profit figure includes a calculated bonus to the Group's employees amounting to SEK 5.6 (1.9) million. Group profit after tax was SEK 214.7 (19.8) million. Excluding SPP refunds, consolidated profit after net financial items and proportional interests in associated companies amounted to SEK 46.2 (26.6) million. The number of full-time equivalents during the period, including employees in associated companies, was 2,198 (2,222). The parent company recorded net sales of SEK 77 (72) million and the profit after net financial items was SEK 1.0 (a loss of 3.6) million. The Group's net worth, after the standard 20 percent tax deduction on the estimated surplus value of property, was SEK 111 (75) per share. The adjusted equity ratio was 43 (39) percent. At the beginning of the period the ÅF Group acquired Miljöforskargruppen AB (MFG). It later went on to increase its ownership stake in ÅF-QPS Consultants, a UK company with a staff of around 30 people, from 40 to 70 percent. The Group also signed a cooperation agreement with Joseph Maier Papiertechnologie, which paves the way for an option to invest in an ownership stake in this paper-machine consulting business. This agreement gives the Group greater access to the important German pulp and paper industry market. More than 700 employees subscribed for convertible bond loans during the reporting period for a total of SEK 96 million, which was paid in July 2000. For further information Gunnar Grönkvist, Managing Director +46 (0)8-657 11 15 or Kaj Sandart, Director, Corporate Information +46 (0)8-657 11 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/27/20001027BIT01100/bit0001.doc The full report http://www.bit.se/bitonline/2000/10/27/20001027BIT01100/bit0002.pdf The full report