Summary of ÅF Annual Report Jan - Dec 2010
For further information, please contact:
Jonas Wiström, CEO +46 (0)70-608 12 20
Jonas Ågrup, CFO +46 (0)70-333 04 95
Viktor Svensson, Director, Corporate Information +46 (0)70-657 20 26
Fourth quarter 2010
- Operating income totalled SEK 1,278 million (Q4 2009: SEK 1,288 million)
- Operating profit was SEK 94 million (SEK 110 million)
- Operating margin was 7.4 percent (8.5 percent)
- Earnings per share, before dilution SEK 2.02 (SEK 2.30)
Full year 2010
- Operating income totalled SEK 4,796 million (Q1-Q4 2009: SEK 4,692 million), of which SEK 458 million (SEK 8 million) relates to the sale of subsidiaries
- Operating profit was SEK 806 million (SEK 388 million), including capital gains of SEK 489 million (SEK 8 million)
- Operating margin excluding capital gains was 7.3 percent (8.1 percent)
- Earnings per share, before dilution SEK 21.02 (SEK 7.93)
Proposals for dividend
The Board proposes a dividend for 2010 of SEK 4.00 per share (2009: SEK 4.00 per share)
A few words from the President, Jonas Wiström:
2010 was a year of major structural changes at ÅF in line with our strategy to become number one or two in the markets where we have an active presence. We sold our interests in inspection and testing, and made acquisitions in the specialist fields of energy, electrical power systems and infrastructure.
The economy continued to pick up steadily throughout the fourth quarter. Improvements were most noticeable in Sweden, in particular in the industrial segment, helping ÅF's Industry Division to raise its operating margin for the final quarter to 11.4 percent compared with 7.6 percent in the first three months of the year. The Technology Division also reported a satisfactory quarter with an upward trend in capacity utilisation and an operating margin of 9.2 percent.
For the Energy and Infrastructure Divisions, however, results were less positive. Energy's earnings were pulled down by postponements to projects in the nuclear power sector, the continued impact of negative exchange rate trends and unrelenting pressure on prices in Finland. Infrastructure's profits were dented by losses in Norway and by further delays to the Stockholm Bypass Project pending the result of an appeal.
Overall, ÅF grew its business organically by 1 percent in the fourth quarter while also making acquisitions. The takeovers of Energo in Sweden and Mercados in Spain added approximately another 350 highly qualified co-workers to ÅF's specialist teams in energy, electrical distribution and the energy-efficiency of plants and businesses.
During the course of 2010 more than 1,000 co-workers have left or joined the ÅF Group as a result of acquisitions and divestments, in line with the strategy of creating a more focused technical consulting organisation with strong divisions that have the potential to become market leaders in their own field. ÅF-Kontroll, the former Inspection Division with 512 members of staff, was sold early in 2010 while most of the acquisitions were made towards the end of the year. At the close of the year the ÅF Group had a total of 4,475 employees, which is approximately 50 more than at the end of 2009.
At this early stage of 2011 the outlook is favourable. ÅF has a clear corporate structure and a strong brand and, for the first time since the onset of the financial crisis, the trend for capacity utilisation is positive. The inflow of orders exceeded expectations in the fourth quarter, particularly in the Energy Division, and it is our opinion that the market for ÅF's services will become progressively stronger as the year unfolds. Most of the signs suggest that 2011 will be a better year for ÅF than 2010.
Our overriding objective remains, however, to ensure that ÅF continues to generate levels of profitability that place us among the best performers in our industry, while growing by around 15 percent a year. Our ambition is for approximately half of this growth to be organic and half to come from acquisitions.
Group Head Office:
ÅF AB, SE-169 99 Stockholm, Sweden
Visitor's address: Frösundaleden 2, 169 70 Solna, Sweden
Tel. +46 (0)10-505 00 00 Fax +46 (0)10-505 00 10
Corporate ID number 556120-6474
The information in this interim report fulfils ÅF AB's disclosure requirements under the provisions of the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was released for publication at 10:30 CET on 14 February 2011.
All assumptions about the future that are made in this report are based on the best information available to the company at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.
The full report including tables (pdf)