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SWECO AB (publ) Interim report January-September 2014

October 23, 2014 | Interim report

Improved profit in a stable market.

JULY – SEPTEMBER 2014

  • Net sales: SEK 2,000.1 million (1,809.7)
  • Operating profit: SEK 143.2 million (106.0); operating margin; 7.2 per cent (5.9)
  • EBITA: SEK 155.2 million (118.2); EBITA margin: 7.8 per cent (6.5)
  • Profit after tax: SEK 92.3 million (70.8); earnings per share SEK 1.02 (0.76)

JANUARY – SEPTEMBER 2014

  • Net sales: SEK 6,659.1 million (5,729.0)
  • Operating profit: SEK 510.4 million (430.6); operating margin: 7.7 per cent (7.5)
  • EBITA: SEK 548.0 million (462.4); EBITA margin: 8.2 per cent (8.1)
  • Profit after tax: SEK 344.8 million (309.2); earnings per share: SEK 3.78 (3.35)
  • Net debt: SEK 1,703.8 million (1,550.7); net debt/EBITDA: 1.9 times (1.9)

Comments from President and CEO Tomas Carlsson:

– Operating profit is the highest for any third quarter in Sweco’s history. The positive trend is mainly due to the successful and completed integration of Vectura as well as improved profit in Central Europe. Sweco’s sales were up 11 per cent, of which 4 per cent was organic. Organic growth was particularly strong in Finland and Norway.

– Overall, the market is stable and no major changes have taken place since the second quarter. The Swedish market improved somewhat during the quarter and the Norwegian market is stable. Markets in Finland and Central Europe remain challenging.

– The Board of Directors adopted a new financial strength target: net debt of less than two times EBITDA. Concurrently with this, Sweco refinanced a SEK 800 million 5-year credit facility. With the new financial target and long-term financing Sweco is achieving a cost-effective capital structure and enabling additional value-creating acquisitions.

– After the reporting period Sweco has been commissioned by the Stockholm County Council to design an 11-kilometer-long underground metro line from Kungsträdgården to Nacka and Gullmarsplan in Stockholm, which is expected to open in 2025. The contract is valued at approximately SEK 500-600 million, an estimated two-thirds of which amount will go to Sweco. This is one of the largest and most complex assignments in Sweco’s history. The initiative is a key component in the entire region’s development and will be a significant improvement to public transport.

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