OPERATING PROFIT CLIMBED SEK 68 M CONTINUED STABLE TREND
OPERATING PROFIT CLIMBED SEK 68 M CONTINUED STABLE TREND · Sales climbed by 6% to SEK 642.8 m (605.7) during the January-June period. · Profit after tax rose to SEK 8.6 m (-47.0). · Earnings per share stood at SEK 0.50 (-2.70). · Operating profit after depreciation was SEK 17.8 m (-49.9). Comments by CEO Hans Johansson As a whole the market is wary, though we notice certain improvements month by month. I am pleased that we have increased our sales by more than SEK 37 million, 6% compared to 2003. This improvement is primarily due to the partnerships we signed in 2003 with Ericsson and General Motors Europe. Sales per employee rose by 11%. Our current growth confirms that our strategy to increase our share of overall incentives and partnerships was correct. Our conscientious effort to implement the restructuring scheme Fast2Profit has, in combination with the more stable market situation, boosted our operating profit by SEK 68 million compared to the same period in 2003. We are now focusing efforts on testing and verification of product and system features. We started a new company, Zound by Semcon during Q2 that complements our total range with its detailed expertise in sound and acoustics. To further strengthen our position within the automotive industry we have also acquired ComTest in Helsingborg and its 20 employees. ComTest's solutions and software are leaders on the Nordic market, consisting of a flexible system for computer-monitored measuring, testing and functionality testing. With 125 specialists and several test laboratories these measures underpin Semcon's market-leading position in Europe within "Functional Performance". Our strategy includes accompanying our customers on international markets. To this end we have signed a partnership agreement with France's leading design and R&D company Assystem Etudes. Having an equally strong partner on the French market is a natural step in complying with customers' needs. Semcon UK's growth has exceeded our expectations, making us today one of the leading consultant companies in concept and design for the automotive industry in Europe. Preparations are complete for the construction of a unique design studio concept. During the period we were awarded the Q1 supplier quality award by Ford Motor Company and Volvo Car Corporation, marking the first time in history that the prestigious award is given to service suppliers. The award is recognition of our consultants' high level of competence and our stable processes. Ford Motor Company's policy is to firstly select Q1 award-winning suppliers. This means even greater opportunities for us and strengthens our position as preferred supplier. Business activities in Denmark have not progressed satisfactorily so far. A customer loss after the bankruptcy in Mayflower has had a negative effect on profits, coupled with various cutbacks. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/08/26/20040826BIT20230/wkr0001.pdf The full report