Strong first quarter

The year has started strongly with continued revenue growth and better margins. Our changing focus towards more markets and significantly wider customer groups are now beginning to bear fruit. We are looking positively at developments in 2012 even though the economic outlook is uncertain.

• Operating income was SEK 685 million (596) and organic growth was 15%

• The operating profit was SEK 72 million (42) giving an operating margin of 10.5% (7.0) 

• The profit after tax was SEK 50 million (28) 

• Earnings per share (EPS) after dilution was SEK 2.77 (1.55) 

• The equity/assets ratio was 40% (34) 

• The return on average shareholders equity excluding one-off items was 26.0% (10.2)

Income and results

Operating income rose by SEK 89 million and amounted to SEK 685 million (596). Sales in local currencies rose by 15%. The sales growth is mainly a result of continued high demand and 195 more employees than the same time last year. The quarter also included an extra working day compared to Q1 2011. 

The operating profit improved by SEK 30 million and amounted to SEK 72 million (42), giving an operating margin of 10.5% (7.0). The improvement is mainly attributable to increased sales and a good utilization rate. There was also a major revenue recognition of SEK 5 million in Q1 from a project in the Automotive R&D business area. 

The business areas showed the following operating margins: Automotive R&D 8.1% (2.6), Design & Development 14.6% (11.2) and Informatic 11.3% (13.5). 

Net financial items totalled SEK -2 million (-3), giving a profit before tax of SEK 70 million (39). Tax costs for the quarter stood at SEK -20 million (-11). The profit after tax was SEK 50 million and the earnings per share after dilution was SEK 2.77 (1.55). 

Financial position

The operating cash flow from current activities was SEK 32 million (-4). The Group’s cash and bank balances amounted to SEK 46 million (29) with additional non-utilized credit of SEK 245 million (101) as at 31 March.  The Group’s credit agreement consists of an overdraft facility of SEK 150 million (100) and a revolving credit facility of EUR 32.8 million (32.8), which runs until July 2012. 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 supplies and equipment, amounted to SEK 5 million (6). Shareholders’ equity amounted to SEK 492 million (399) and the equity/assets ratio was 40% (34). The Group’s net debt fell by SEK 114 million to SEK 201 million (315) and the debt/equity ratio was 0.4 times (0.8). 

Staff and organization

The headcount on 31 March was 2,953 (2,758) of which 1,459  (1,466) in Sweden and 1,494 (1,292) outside Sweden. The number of employees in active service was 2,842 (2,663). The average number of employees was 2,843 (2,614). In the respective business areas the headcount is as follows: Automotive R&D 1,725 (1,578), Design & Development 780 (783) and Informatic 448 (397). 

Outlook

The year has started well with continued sales growth and improved margins. The company is looking positively at developments in 2012 even though the economic outlook is uncertain.

För mer information, kontakta:

Kjell Nilsson, CEO Semcon AB, +46 31-721 03 11
Markus Granlund, incoming CEO Semcon AB, +46 31- 721 03 11
Björn Strömberg, CFO Semcon AB,  +46 31-721 03 05
Anders Atterling, IR & PR 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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