“The company continued to show sales growth and improved results for Q3. Our focus towards more markets and more profitable business models is continuing to pay off, both for our customers and Semcon. We are pleased to announce that we signed yet another major order in Q3 worth around EUR 15 million, with a German auto manufacturer. We also extended our offer on the German market through the acquisition of the product information company Comet, at the beginning of October.” Third quarter • The operating income was SEK 573 million (568) and organic growth was 5% • The operating profit was SEK 35 million (24) giving an operating margin of 6.1% (4.3) • The profit after tax was SEK 23 million (16) • Earnings per share (EPS) after dilution was SEK 1.30 (0.88) January-September • The operating income was SEK 1,900 million (1,773) and organic growth was 8% • The operating profit was SEK 138 million (54) giving an operating margin of 7.3% (3.1) • The profit after tax was SEK 94 million (33) • Earnings per share (EPS) after dilution was SEK 5.21 (1.85) • The equity/assets ratio was 44% (35) • Return on average equity excluding one-off items was 27.4% (20.6) • Return on average capital employed excluding one-off items was 26.6% (16.9) Income and results Q3 Operating income rose by SEK 5 million compared with last year and amounted to SEK 573 million (568). Sales in local currencies increased overall by 5%. Demand for Design & Development in some areas fell somewhat over the quarter compared with last year. The quarter also had one less working day than the same period last year. The operating profit improved by SEK 11 million amounting to SEK 35 million (24) giving an operating margin of 6.1% (4.3). The improvement is mainly attributable to increased sales with improved margins. Net financial items totalled SEK -2 million (-2) giving a profit before tax of SEK 33 million (22). Tax costs for the quarter stood at SEK 10 million (6). The profit after tax was SEK 23 million (16) and EPS after dilution was SEK 1.30 (0.88). January-September Operating income rose by SEK 127 million compared to last year and amounted to SEK 1,900 million (1,773). Sales in local currencies rose by 8%. The operating profit improved by SEK 84 million amounting to SEK 138 million (54) giving an operating margin of 7.3% (3.1). The improvement is mainly attributable to increased sales with improved margins. In Q1 there was 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 costs of SEK 31 million for a reserve for Saab Automobile AB. The business areas showed the following operating margins excluding one-off costs: Automotive R&D 5.7% (2.1), Design & Development 7.9% (7.3) and Informatic 11.5% (9.5). Net financial items totalled SEK -5 million (-8) giving a profit before tax of SEK 133 million (46). Tax costs for the quarter stood at SEK 39 million (13). The profit after tax was SEK 94 million (33) and EPS after dilution was SEK 5.21 (1.85). Financial position The operating cash flow from current activities was SEK 78 million (14). The Group’s cash and bank balances amounted to SEK 49 million (36) with additional non-utilized credit of SEK 270 million (162) as at 30 September. The Group’s credit agreements have been extended and consist of an overdraft facility of SEK 150 million (150) and a revolving credit facility of EUR 32.8 million (32.8), which run until July 2013. There is an option available for the company to extend the revolving credit to a three-year loan before the due date. Investments in hardware, licences, office supplies and equipment, amounted to SEK 16 million (12). Shareholders’ equity amounted to SEK 528 million (406) and the equity/assets ratio was 44% (35). The Group’s net debt fell by SEK 153 million to SEK 158 million (311) and the debt/equity ratio was 0.3 times (0.8). Interest cover ratio was 21.8 times (7.2). Staff and organization The headcount on 30 September was 3,010 (2,872). The number of employees in active service was 2,895 (2,786). Compared with 31 December 2011, the total number of employees has risen by 116. In the business areas the headcount is as follows: Automotive R&D* 1,767 (1,644), Design & Development* 744 (805) and Informatic 499 (423). * 26 employees transferred from Design & Development to Automotive R&D on 1 July. Outlook Semcon has seen something of a drop in demand from some customers since the summer, mainly in the Design & Development business area. The company is, however, looking positively at developments ahead, 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 had sales of SEK 2.5 billion in 2011 and activities at more than 45 sites in Sweden, Germany, the UK, Brazil, Hungary, India, China, Spain and Russia
Continued sales growth and improved results
| Source: Semcon AB