SEMCON INTERIM REPORT JANUARY-MARCH 2018.

There is fantastic dedication and drive at Semcon. A passion to use technology to create excellent user experiences pervades the company. Through our focus on measures to strengthen margins in business development, productivity and cost efficiency, we can report strong earnings for the first quarter.

Despite an adverse calendar effect, operating profit is at the same level as last year. In parallel, work with our brand and our culture has improved Semcon’s position as an attractive employer.

The Engineering Services business area achieved its highest level of profitability ever and, for the first time, reported an operating margin exceeding 10 per cent. Demand is healthy for the business area’s offering within product development and production optimisation. We have also been entrusted by several new customers who have opted to sign framework agreements with Semcon during the quarter. This creates favourable conditions as we move forward.

As previously announced, earnings for the Product Information business area were at a lower level in the first quarter compared with last year. Lower volumes in ongoing customer assignments had a negative impact on earnings. New collaborations failed to fully compensate for the volume decrease, but we expect a gradual improvement in earnings due to increased revenue for the second half of 2018. There is strong interest in digitized product information and for offerings that modernise our customers’ aftermarket business. The strategic acquisition of Haas-Publikationen in Germany in April has strengthened Semcon’s position in product information in the German market. It also provides Semcon with cutting-edge expertise in the railway industry that will produce revenue synergies in a number of markets. The acquisition is expected to have a positive impact on both operating margin and earnings per share in 2018.

Many projects are in progress where we are helping our customers to digitize their offering using smart technology. One example is the demonstration of the world’s first autonomous snowplough for airports, which has generated substantial interest and attention worldwide. Technology developed by Semcon is used to enhance the efficiency of snow removal, which improves profitability for airport operators and reduces delays. Our successful design team has again attracted attention by winning two international awards for its work on a rack system and a 3D printer for human tissue.

Measures to improve our margins continued throughout the Group. Similarly, we have maintained focus on our dedicated employees, who create fantastic user experiences from technology – every day. Although the two coming quarters are seasonally weaker, we are expecting a growth in earnings for the remainder of the year.

First quarter

• The operating income amounted to SEK 468 Million (475) and the organic growth was -1% 
• The operating profit amounted to SEK 40 Million (40), yielding an operating margin of 8.5% (8.5) 
• The profit after tax amounted to SEK 30 Million (30) 
• Earnings per share (EPS) after dilution amounted to SEK 1.68 (1.67) 
• The equity/assets ratio amounted to 61% (56)

This information is information that Semcon AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication at 12.00. (CET) on April 25, 2018.

For more information, please contact:

Björn Strömberg, CFO, Semcon
Tel: +46 (0) 70-835 44 80 Email: bjorn.stromberg@semcon.com

Semcon is an international technology company that develops products based on human needs and behaviours. We strengthen our customers’ competitiveness by always starting from the end user, because the person who knows most about the user’s needs creates the best products and the clearest benefits to humans. Semcon collaborates mainly with companies in the automotive, industry, energy and life science sectors. With more than 2000 specialised employees, Semcon has the ability to take care of the entire product development cycle, from strategy and technology development to design and product information. Semcon was founded in Sweden in 1980 and has offices in over 30 locations in eight different countries. In 2017, the Group reported annual sales of SEK 1.8 billion. Read more on semcon.com

Tags: