Interim report ÅF Jan - March 2011
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
First quarter 2011
- Net sales totalled SEK 1,240 million (Q1 2010: SEK 1,107 million)
- Operating profit, excl capital gain, was SEK 100 million (SEK 83 million)
- Operating margin, excl capital gain, was 8.1 percent (7.5 percent)
- Earnings per share before dilution: SEK 2.27 (SEK 15.27) *)
*) Profit for the first quarter of 2010 included a capital gain of SEK 458 million resulting from the sale of the ÅF Group's Inspection Division, ÅF-Kontroll.
A few words from the President, Jonas Wiström:
The market for ÅF's services continues to improve, and the first quarter of 2011 shows an increased growth rate. The Technology Division reported organic growth of almost 30 percent and an improvement in profitability. It was a similar story of good growth rates and improved profits from the Industry and Infrastructure Divisions, but earnings for the Energy Division have been affected by postponements to deliveries in Russia and rising uncertainty with regard to the nuclear power sector in Europe. On the positive side, however, orders for Energy Division services in the first quarter totalled SEK 500 million.
Capacity utilisation rose for a second successive quarter as business emerged from the economic downturn, and profits for ÅF improved. In March ÅF's operating margin, adjusted to exclude the effect of costs relating to the integration of Energo (acquired in December 2010), rose to 12 percent. As we have previously indicated to the market, the result for the first quarter has been charged with costs of some SEK 10 million for the integration of Energo.
Overall growth for ÅF in the first quarter was 12 percent and organic growth was 7 percent. Today ÅF has almost 700 more permanent employees than at this time last year.
We reiterate our conviction that 2011 will be a better year for ÅF than 2010. The company is well placed with a strong brand and a positive trend in terms of capacity utilisation. Demand for ÅF's services is rising and operations in Norway are once again reporting a profit after some protracted problems in this respect.
Our overriding objective remains 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, and a strong balance sheet provides a firm foundation on which to build towards this end.
The outlook for a sustained increase in organic growth is also good. During the first quarter ÅF was ranked in overall seventh place (2010: twelfth place) among Sweden's most attractive employers in Universum's survey of engineering students. This means that ÅF is now the most popular employer in the technical consulting industry among students of technology and engineering graduates. The ability to attract the very best talents in technical consulting is a factor that is absolutely critical to the continued success of ÅF.
Group Head Office:
ÅF AB, SE-169 99 Stockholm, Sweden
Visitors' address: Frösundaleden 2, 169 70 Solna, Sweden
Tel. +46 (0)10 505 00 00 Fax +46 (0)10 505 00 10
www.afconsult.com / email@example.com
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 2 May 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 can be downloaded from the following link: