NCC Group Year-End Report 2001

NCC GROUP Year-End Report 2001 Oct-Dec 12 months 2001 2000 2001 2000 (pro forma) 1) (pro forma) 1) Orders received, SEK M 13 781 13 749 50 647 46 316 Net sales, SEK M 13 341 11 796 46 058 40 808 Operating profit, SEK M -2 432 700 -1 536 2 421 excl. items affecting -692 700 204 1 509 comparability Profit after financial -2 581 591 -2 130 2 063 items, SEK M -841 591 -390 1 151 excl. items affecting comparability Earnings per share, SEK -24,10 4,00 -21,60 13,40 excl. items affecting -12,50 4,00 -10,00 7,45 comparability Return on equity , % neg 14,6 excl. items affecting neg 8,4 comparability 1) For information about pro forma figures, see page 2. ·Net sales rose 13 percent during the fourth quarter to SEK 13.3 billion. ·Items affecting comparability during the fourth quarter amounted to an expense of SEK 1,740 M, of which restructuring costs accounted for SEK 1,192 M ·Q4 earnings were also charged with write-downs and provisions totaling SEK 825 M ·It is estimated that the Group's profit after net financial items for 2002 will amount to at least SEK 1 billion and the long-term profitability target, in terms of the return on equity after tax, has been raised from 12 percent to 15 percent. ·The Board of Directors proposes a divided of SEK 2.25 (4.50) per share. ·Based on the results of an independent inquiry, NCC has confirmed its participation in illegal asphalt cartels. Comments by the CEO: "The comprehensive action program currently under way within NCC is resulting in dramatic changes. Unprofitable product areas are being phased out and operations showing weak profitability are being re structured. These measures require that 2,500 employees leave the Group. Most of the workforce cutbacks have already been initiated. All of the restructuring measures will have been completed by the end of 2002, " says Alf Göransson, President and Chief Executive Officer of the NCC Group. "As a result of the action program, NCC will become a smaller, leaner and more selective company in the next few years. It will also become more focused, sharper and more profitable than before. "Once we have consolidated operations and raised the profitability level, we can start to grow within the market segments offering the greatest potential and the highest profitability. To ensure a sustainable high return to shareholders, growth is essential. "The forecast for 2002 is that we will report profit of at least SEK 1 billion after net financial items. The cost savings resulting from the restructuring measures are expected to have a maximum effect on earnings during 2003. "Implementing these changes within NCC will take time. The long-term profitability target, in terms of the return on equity after tax, has been raised from 12 to 15 percent. The aim is that cash flow will be positive and that we will achieve an equity/assets ratio of approximately 30 percent," says Alf Göransson. GROUP Pro forma The acquisition of Rieber Roads, which became effective on November 1, 2000, is included pro forma for full-year 2000. This mainly affects NCC Industry. In order to facilitate comparisons with previous years, comparative figures (pro forma) are presented for the Group and each business area as if the changes had been implemented on January 1, 2000. Orders received and order backlog Orders received by the NCC Group during October - December amounted to SEK 13,781 M (13,749). Orders received during the fourth quarter of 2001 included the A2 highway project in Poland, which has a total value of slightly more than SEK 2 billion. Adjusted for exchange-rate effects, orders received declined by 4 percent. The term exchange-rate effects refers to the impact that changes in various currencies have on ongoing financial reporting within the NCC Group as a result of conversion into Swedish kronor (SEK). Proprietary property-development projects accounted for SEK 305 M (0) of total orders received during the quarter and proprietary housing-development projects for SEK 1,048 M (761). Orders received during the January - December period amounted to SEK 50,647 M (46,316), up 9 percent compared with 2000. Adjusted for exchange-rate effects, the increase was 4 percent. Proprietary property- development projects accounted for SEK 2,388 M (1,114) of total orders received and proprietary housing-development projects for 2,931 M (3,332). The order backlog on December 31 was approximately SEK 31 billion, a rise of 19 percent compared with about SEK 26 billion at year- end 2000. Exchange-rate effects accounted for 4 percentage points of the increase in the order backlog. The favorable level of orders received during 2001 and the healthy order backlog provide a solid foundation for operations in 2002. Solna, February 12, 2002 Alf Göransson President and Chief Executive Officer NCC's report on operations during the first quarter of 2002 will be published on May 3, 2002. If you have any questions, please contact: Björn Andersson, Chief Financial Officer (Tel: +46-8-655 20 40, or +46- 70-627 65 92); Hans-Olof Karlsson, Senior Vice President Corporate Communications (Tel: +46-8-655 22 79, or +46-70-547 12 50); or Annica Gerentz, Investor Relations Manager (Tel: +46-8-655 22 04, or +46-70-398 42 09, annika.gerentz@ncc.se). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/12/20020212BIT00590/bit0002.doc The full repoprt http://www.waymaker.net/bitonline/2002/02/12/20020212BIT00590/bit0002.PDF The full report