Significantly improved results for the first half-year

Interim report January-June 2012: The positive trend we saw in the first quarter continued in the second quarter resulting in improved results compared to last year. Our focus on more markets and more profitable business models is giving results for Semcon and our customers. We continue to look positively at developments in 2012 even though the economic outlook is uncertain.

Second quarter

• The operating income was SEK 642 million (609) and organic growth was 5% 

• The operating profit was SEK 31 million (-12) giving an operating margin of 4.8% (-2.0) 

• The profit after tax was SEK 21 million (-10) 

• Earnings per share (EPS) after dilution was SEK 1.14 (-0.58)

January-June

• The operating income was SEK 1,327 million (1,205) and organic growth was 10% 

• The operating profit was SEK 103 million (30) giving an operating margin of 7.8% (2.5) 

• The profit after tax was SEK 71 million (18) 

• EPS after dilution was SEK 3.92 (0.97) 

• The equity/assets ratio was 41% (33)

• Return on average equity was 27.4% (9.7).

Income and results

Q2
Operating income rose by SEK 33 million compared to last year and amounted to SEK 642 million (609). Demand has continued to be good and sales in local currencies rose by 5%. The quarter included one working day less than the same period last year and six fewer than Q1, 2012.

The operating profit improved by SEK 43 million amounting to SEK 31 million (-12) giving an operating margin of 4.8% (-2.0). The improvement is mainly attributable to increased sales and a good utilization rate. Last year, the quarter was burdened with one-off items of SEK -31 million in respect of provisions for Saab Automobile AB.

Net financial items totalled SEK -2 million (-3) giving a profit before tax of SEK 29 million (-15). Tax costs for the quarter stood at SEK -8 million (4). The profit after tax was SEK 21 million (-10) and EPS after dilution was SEK 1.14 (-0.58).

January-June

Operating income rose by SEK 122 million over the period compared to last year and amounted to SEK 1,327 million (1,205). Sales in local currencies rose by 10%. 

The operating profit improved by SEK 73 million amounting to SEK 103 million (30) giving an operating margin of 7.8% (2.5). The improvement is mainly attributable to increased sales and a good utilization rate. In Q1 there was a revenue recognition of SEK 5 million taken up as income, from a major project in the Automotive R&D business area. Last year, the period was burdened with one-off items of SEK -31 million. 

The business areas showed the following operating margins excl. one-off items: Automotive R&D 5.9% (1.3), Design & Development 9.9% (8.7) and Informatic 10.3% (10.3). 

Net financial items totalled SEK -3 million (-5) giving a profit before tax of SEK 100 million (24). Tax costs for the period stood at SEK -29 million (-7). The profit after tax was SEK 71 million (18) and EPS after dilution was SEK 3.92 (0.97).

Financial position

The operating cash flow from current activities was SEK 59 million (8). The Group’s cash and bank balances amounted to SEK 46 million (33) with additional non-utilized credit of SEK 265 million (140) as of 30 June. The Group’s credit agreement has been extended by one year and consists of an overdraft facility of SEK 150 million (150) and a revolving credit facility of EUR 32.8 million (32.8), which runs until July 2013. There is an option available for the company, before the due date, to extend the revolving credit to a three-year loan.

Investments in hardware, licences, office inventory and equipment, amounted to SEK 9 million (9). Shareholders’ equity amounted to SEK 511 million (390) and the equity/assets ratio was 41% (33). The Group’s net debt fell by SEK 135 million to SEK 178 million (313) and the debt/equity ratio was 0.3 times (0.8). 

Staff and organization

The headcount on 30 June was 2,987 (2,804). The number of employees in active service was 2,883 (2,719). Compared with 31 December 2011, the total number of employees has increased by 62. In the business areas the headcount is as follows: Automotive R&D 1,742 (1,592), Design & Development 777 (793) and Informatic 468 (419). 

Outlook

The first half of the year has started well with improved results compared with last year. The company is looking positively at developments in 2012 even though the economic outlook is uncertain. 

Markus Granlund, CEO Semcon AB, +46 31 721 03 11
Björn Strömberg, CFO Semcon AB,  +46 31 721 03 05
Anders Atterling, IR Manager Semcon AB, +46 704 47 28 19

Semcon is a global company active in the areas of engineering services and product information. The Group has nearly 3,000 employees with extensive experience from many different industries. We develop technologies, products, plants and information solutions along the entire development chain and also provide many services including quality control, training and methodology development. Semcon boosts customers’ sales and competitive strength by providing them with innovative solutions, design and solid engineering solutions. The Group has sales of SEK 2.5 billion and activities at more than 45 sites in Sweden, Germany, the UK, Brazil, Hungary, India, China, Spain and Russia

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