Interim report January-March 2002

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Interim report January-March 2002 · Profit after net financial items improved to MSEK 60.3 (56.0). · Operating profit, excluding the refund from Alecta, amounted to MSEK 39.8 (37.9). · Net sales rose to MSEK 405.3 (393.0). · Scandiaconsult's wide geographic coverage in the Nordic region and the current market outlook vouch for continued robust development in 2002. For more information contact CEO Torbjörn Torell or CFO Per Leopoldson, telephone +46 8 615 60 00. This report is also available at www.scc.se. Scandiaconsult is a leading consulting engineering company in the Nordic market. The Group offers comprehensive solutions in the fields of infrastructure and construction - from concept and analysis, planning, design and project management to operation and maintenance. Scandiaconsult's technical competency is combined with in-depth knowledge about the environment, international development issues and sustainable use of natural resources. Scandiaconsult has 2,000 employees at 50 locations in Sweden, Norway and Finland. The Group has an annual turnover of SEK 1.5 billion and is quoted on the A list of the Stockholm Stock Exchange. For more information see www.scc.se. The period in review In the first three months of 2002 Scandiaconsult achieved net sales of MSEK 405.3 (393.0), an increase of 3 per cent compared with the same period of last year. The Norwegian operations accounted for the most significant growth in sales. However, sales and profit were negatively affected by a lower number of available working hours compared with the first quarter of 2001, since the Easter holidays this year fell during the first quarter. Demand for consulting engineering services in the Nordic market showed considerable variations. Demand was strongest in the civil engineering sector but declined in the building construction segment, particularly in Sweden and Finland. The Norwegian market is continuing to show more vigorous economic development than Sweden and Finland. Scandiaconsult has been successful in evening out variations in demand between different locations and areas of operation. Profit after net financial items during the period amounted to MSEK 60.3 (56.0), up MSEK 4.3 or 8 per cent on the corresponding period of last year. Profit for the period included reallocated client company pension funds of MSEK 17.8, while year-earlier figure included an additional payment MSEK 15.0 for the sale of Arsenalen. Higher efficiency in operations and a shift towards segments with favourable demand contributed to a well preserved earnings level. The profit margin improved to 9.8 per cent excluding client company pension funds (9.6). Acquisitions and sales On 1 January 2002, Scandiaconsult took over the firm of Siv. Ing Tom R Hansen in Norway. The company, which was acquired during 2001, is located in Sandefjord, Norway, and provides consulting engineering services in structural, civil and water/wastewater engineering, with special expertise in underwater engineering. The company has an annual turnover of around MSEK 5. National markets Operations in Sweden Scandiaconsult in Sweden offers consulting services in structural, civil, electrical and environmental engineering, HVAC and sanitary engineering and project management including project, cost and quality control, construction management and environmental management. Infrastructure assignments account for close to half of income. The average number of employees during the period was 905. Scandiaconsult's net sales in Sweden during the period amounted to MSEK 219.9 (225.5). The decrease is attributable to a lower number of available working hours compared with the same period of last year, owing to the Easter holidays. Due to the drop in sales, operating profit for the period was MSEK 22.7 (24.0). During the first quarter, the Swedish market was characterized by relatively robust demand for consulting services. Demand was strongest for units in civil engineering, but declined in the building and industrial construction segment. The price level remained stable in most areas of operation and regions. Among other things, Scandiaconsult has been commissioned to plan and design OM's new head office in Stockholm's free port area. When completed, the building will contain 1,500 workstations and a total remodelled area of 32,000 square meters. Operations in Norway Scandiaconsult in Norway works with an emphasis on infrastructure and construction projects such as offices, housing, healthcare facilities and schools. The clients are found primarily in the national, county and local governments. The average number of employees during the period was 430. During the quarter, Scandiaconsult's net sales in Norway rose 16 per cent to MSEK 109.4 (94.2). Adjusted for currency effects, the increase was 9 per cent. Sales growth was largely due to an increased number of employees and a better price scenario. Operating profit rose to MSEK 8.0 (6.8), up 18 per cent on the year- earlier figure. Adjusted for currency effects, the increase was 11 per cent. This earnings growth is mainly attributable to favourable results from units in structural and civil engineering. Housing construction in Norway has shown positive development during the first quarter and the civil engineering market remains robust. The Norwegian government has proposed a substantial increase in funding for roads and railways. Scandiaconsult has been awarded a large-scale assignment in connection with construction of the planned opera house in central Oslo. The assignment, which is a collaborative effort between Scandiaconsult's offices in Oslo and Gothenburg, is to create the technical means for rapid and silent scene changes through advanced hydraulic solutions. When inaugurated in 2008, the Oslo Opera will have the world's most state-of-the-art stage machinery. Operations in Finland Scandiaconsult in Finland offers services and expertise in urban planning, structural, civil, water/wastewater and environmental engineering. The clients are found mainly in the public sector, predominantly in infrastructure assignments. The average number of employees during the period was 480. During the quarter, Scandiaconsult's net sales in Finland rose 4 per cent to MSEK 80.3 (77.3). Adjusted for currency effects, the increase was 2 per cent. The improvement in sales is primarily explained by higher hourly rates. Operating profit for the period amounted to MSEK 5.1 (5.8), down 12 per cent on the same period of last year. Adjusted for currency effects, the decrease was 14 per cent. The drop in earnings is mainly due to lower number of available working hours. In recent months, the market has revived in the infrastructure segment. However, investments in the building construction sector have declined somewhat, particularly for commercial and office construction. In Helsinki, a new express streetcar line is being built to link the Helsinki region and Lahti. Scandiaconsult has revised the previous investigatory plan and has been commissioned to prepare building documents for a stretch of 12 kilometres. Financial position Cash and bank and short-term investments at the end of the period totalled MSEK 183.8 (227.6). Interest-bearing liabilities decreased to MSEK 48.5 (57.9). The cash flow after investments was MSEK 10.2 (-10.9), or SEK 0.4 per share (-0.5). The Group's financial position remains strong and the equity ratio at the end of the period was 48 per cent (51). Shareholders' equity amounted to MSEK 406.2 (438.9), corresponding to equity per share before dilution of SEK 17.58 (18.99). Tax The period's tax expense was MSEK 17.5, corresponding to 29 per cent of profit before tax. Investments New investments in tangible fixed assets amounted to MSEK 5.9 (7.6) and referred primarily to computers and other IT equipment. Depreciation of machinery and equipment during the period totalled MSEK 6.7 (6.5). Employees The average number of employees during the period was 1,833 (1,817). Including temporary staff, the number of employees at the end of the period was 1,999 (1,921). Parent Company The Parent Company's reported net sales of MSEK 7.1 (6.2) during the period and profit after net financial items was MSEK 5.0 (18.4). The year-earlier figure included an additional payment of MSEK 15.0 for the sale of Arsenalen. Investments in machinery and equipment totalled MSEK 0.0 (0.0). Cash and bank and short-term investments amounted to MSEK 168.9 (198.2). Future outlook 2002 Variations in demand between different technical disciplines and locations have increased and economic development forecasts are increasingly uncertain. The construction market in general is expected to remain strong. Scandiaconsult's position with a high relative share of income from the civil engineering sector in Sweden, Norway and Finland provides a solid platform for growth in 2002. The Swedish Federation of Architects and Consulting Engineers expects total building investments in Sweden to increase by around 2 per cent in 2002. Accounting principles This interim report has been prepared in accordance with the Swedish Annual Accounts Act and the recommendations of the Swedish Financial Accounting Standards Council. The same accounting and valuation principles have been applied as in the most recent annual report. Financial information in 2002 Interim report (6 months): 9 August. Interim report (9 months): 25 October. Stockholm, 7 May 2002 Scandiaconsult AB (publ) Torbjörn Torell Managing Director & CEO This report is also available at www.scc.se. Audit report The interim report has not been subject to examination by the company's auditors. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/05/08/20020508BIT00930/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/05/08/20020508BIT00930/wkr0002.pdf The Full Report