GÖTEBORG, Sweden--Regulatory News:
The first quarter was slightly weaker compared with the same period last year, partly due to one fewer working day, representing around SEK 10 million in lower income. The Engineering Services Nordic business area was also affected by a drop in demand from the energy sector, mainly in Norway. The automotive industry however is continuing to develop positively in Sweden, with an increase in requests for project-based deliveries. The Engineering Services Germany business area is undergoing a process of change, which was started last year, with the prerequisite for gradually improving results. Income from the Product Information business area was lower in Q1 compared with the same period last year. The reason for this is mainly due to fewer deliveries to Jaguar Land Rover, which we reported about in Q4 2015. It is therefore very pleasing that we after the end of Q1 have signed new partnership agreements with two automotive manufacturers in Sweden and the UK. The projects will be delivered by our global teams and initially involve 65 employees. Our international presence is something that potential employees are attracted by. This is shown, not least, by Universum’s annual survey among 24,000 engineering students in Sweden. Semcon was nominated as the “Rocket of the Year” with an improvement of more than 30 places on the list of attractive employees.
• The operating income was SEK 666 million (677) and the organic growth was - 2%
• The operating profit was SEK 23 million (34), giving an operating margin of 3.5% (5.1)
• The profit after tax was SEK 17 million (25)
• Earnings per share after dilution was SEK 0.92 (1.36)
• The equity/assets ratio was 49% (50)
Income and result
The operating income amounted to SEK 666 million (677). Adjusted for currency effects, acquisitions and divestments, income fell by 2%. The quarter had one fewer working day compared with last year, which meant around SEK 10 million in lower income. The operating profit was SEK 23 million (34), giving an operating margin of 3.5% (5.1). Both the Engineering Services Nordic and Engineering Services Germany business areas reported a drop in operating profit compared with last year. One fewer working day negatively affected the Group’s operating profit by around SEK 8 million. The Product Information business area’s operating profit is in line with last year, but profit was positively affected by recovered write-downs of accounts receivable of SEK 5 million. Net financial items amounted to SEK -1 million (-1), giving a profit before tax of SEK 22 million (33). The tax cost amounted to SEK -5 million (-9). The profit after tax was SEK 17 million (25) and EPS after dilution was SEK 0.92 (1.36).
The operating cash flow from current activities was SEK -16 million (-52). Cash flow is seasonally weak in Q1. Investments in hardware, licenses, office supplies and equipment amounted to SEK 22 million (16). The Group’s liquid assets amounted to SEK 44 million (93) with additional non-utilised credit of SEK 271 million (263) as of 31 March. Shareholders’ equity amounted to SEK 619 million (687) and the equity/assets ratio was 49% (50). The Group’s net debt amounted to SEK 119 million (76). Excluding pension commitments, net debt amounted to SEK 49 million (9). The debt/equity ratio was 0.2 times (0.1).
The headcount on 31 March was 2,901 (2,935) and the number of employees in active service was 2,775 (2,822).Downsizing of business activities over the past year, mainly in Engineering Services Germany, have resulted in a fall in the number of employees. In the respective business areas the headcount is as follows: Engineering Services Nordic 1,079 (1,017), Engineering Services Germany 914 (1,012), Engineering Services International 354 (344) och Product Information 554 (562).
This information was brought to you by Cision http://news.cision.com