SWECO AB (publ) Interim report January-June 2007

Continued upward trend for SWECO: Stronger earnings and operating margin

• Operating profit rose 30 per cent to SEK 240.4 million (185.6).
• Operating margin was 10.4 per cent (9.6).
• Net sales increased 20 per cent to SEK 2,302.7 million (1,925.5).
• Profit before tax totalled SEK 238.6 million (189.4).
• Profit after tax was SEK 166.4 million (132.7), equal to earnings per share of SEK 1.91 (1.51).

Comments from CEO Mats Wäppling:

– SWECO delivered impressive first half earnings with growth of 20 per cent and an increased operating margin of 10.4 per cent.

– Market conditions remain favourable and SWECO is enjoying sustained strong demand in all areas of operation. Projects in Sweden include large-scale assignments in preparation for the planned Citybanan railway line in Stockholm. In addition, a greater focus on climate change is stimulating interest in SWECO’s consulting services, above all in the environmental and energy areas.

– The fast-paced development in Eastern and Central Europe has given SWECO a leading position that is growing steadily stronger. Today we have around 800 employees in these markets and a very healthy order intake. Among other things, SWECO recently won a contract to design water and wastewater systems for the Russian city of Petrozavodsk.

– Our ambition is to continue growing with strong profitability, both in the Nordic market and in Eastern and Central Europe. We see no signs of slowing so far and the outlook for the remainder of 2007 is bright.