SWECO AB (publ)Interim report January-September 2007

Sustained earnings growth: Operating profit up 26 per cent

• Operating profit improved by 26 per cent to SEK 296.8 million (236.1).
• Operating margin strengthened to 9.1 per cent (8.6).
• Net sales increased by 19 per cent to SEK 3,259.6 million (2,732.8).
• Profit before tax was SEK 292.4 million (239.2).
• Profit after tax was SEK 209.3 million (167.2) equal to earnings per share of SEK 2.41 (1.92).

Comments from CEO Mats Wäppling:

– SWECO is continuing to grow with healthy profitability. Our operating profit improved substantially and we recorded an operating margin of 9.1 per cent.

– All areas of operation are benefiting from favourable market conditions and SWECO’s special expertise in climate-related issues and sustainable development is attracting particularly keen interest. Another distinct trend is being seen in the infrastructure area, where demand for SWECO’s services is accelerating. In Sweden SWECO has been chosen to plan the country’s largest road project, the Stockholm Bypass, and in Norway SWECO is preparing a construction plan for the E6 motorway through Gudbrandsdalen.

– The Central and Eastern European market offers enormous potential. Order intake is increasing primarily in the water and environment area, but also in industry, infrastructure and energy. SWECO’s ventures in these growth markets are starting to make a tangible contribution to earnings, with healthy operating margins.

– Our ambition is to continue growing with sustained profitability in all of our markets. We see no signs of slowing so far and the outlook for the fourth quarter of 2007 is bright.