Stable earnings trend – gradual recovery of the market

APRIL – JUNE 2014

• Net sales: SEK 2,337.3 million (2,001.7)
• Operating profit: SEK 155.6 million (190.6); operating margin: 6.7 per cent (9.5)
• EBITA: SEK 167.8 million (200.5); EBITA margin: 7.2 per cent (10.0)
• Integration costs for Vectura: SEK 2.8 million
• Profit after tax: 108.6 million (136.2); earnings per share: SEK 1.19 SEK (1.48)

JANUARY – JUNE 2014

• Net sales: SEK 4,659.0 million (3,919.3)
• Operating profit: SEK 367.2 million (324.6); operating margin: 7.9 per cent (8.3)
• EBITA: SEK 393.2 million (344.6); EBITA margin: 8.4 per cent (8.8)
• Integration costs for Vectura: SEK 11.3 million
• Profit after tax: 252.5 million (238.4); earnings per share: SEK 2.76 SEK (2.59)
• Net debt: SEK 1,522.8 million (647.9)

Comments from President and CEO Tomas Carlsson:

– Sales increased 17 per cent during the second quarter, due primarily to the acquisition of Vectura. Operating profit was down due to the fewer number of available working hours. Vectura and improved utilisation in Finland contributed positively to profit. In view of the negative calendar effects, the earnings trend is stable.

– During the second quarter, the market in general is characterised by cautious optimism and recovery compared to the weak start to the year. Recovery is slow, however, and the road to a robust growth in demand has pitfalls in terms of the general economic development. During the quarter the Swedish market is somewhat improved, while the Norwegian market is stable. The markets in Finland and Central Europe remain challenging.

– It has now been one year since Vectura was acquired, and it is time to summarize the transaction. Vectura is already exceeding our financial expectations, and Sweco is the Nordic leader in infrastructure. We are thus uniquely positioned to benefit from future investments in roads and railways. The integration is completed and we now focus on continued profitable growth.