ÅF AB Interim Report January - September 2013
|For further information, please contact:|
|Jonas Wiström, President and CEO||+46 70 608 12 20|
|Stefan Johansson, CFO||+46 70 224 24 01|
|Viktor Svensson, Director Corporate Information||+46 70 657 20 26|
Third quarter 2013
- Net sales totalled SEK 1,770 million (1,183)
- Operating profit totalled SEK 130 million (75)
- Operating margin was 7.4 percent (6.3)
- Profit after tax was SEK 92 million (54)
- Earnings per share, before dilution, were SEK 2.30 (1.49)
- Net sales totalled SEK 6,046 million (3,949)
- Operating profit totalled SEK 449 million (324)
- Operating profit excluding integration costs totalled SEK 504 million (324)
- Operating margin excluding integration costs was 8.3 percent (8.2)
- Profit after tax was SEK 319 million (236)
- Earnings per share, before dilution, were SEK 8.05 (6.87)
A few words from the President, Jonas Wiström:
ÅF's third-quarter operating profit rose by just over 70 percent to SEK 130 million (75). Most of this improvement is attributable to recent acquisitions, organic growth and the continued positive trends for the Industry and Infrastructure Divisions, which are seeing increased demand for ÅF's services to match the investments that are currently being made in Scandinavia. ÅF's operating margin rose to 7.4 percent (6.3).
On the whole the market for ÅF's services showed a slight improvement on the situation a year ago, as evidenced in a somewhat higher capacity utilisation rate. Investments in industry rose slightly and the market for infrastructure services remained strong. Growth for the Infrastructure Division topped 30 percent and the division's operating margin rose to 9.2 percent (7.3) in the third quarter. The positive trend in earnings was also reflected in the International Division, which improved its margin to 7.5 percent (3.3). By contrast, the Technology and Industry Divisions reported slightly lower operating margins than in the third quarter of 2012, partly as a result of a significant investment in competence development during the period.
We are also continuing to invest in the Norwegian market, which is showing strong growth. The third quarter saw the signing of an agreement to acquire the business operations of Kåre Hagen AS, with annual sales of NOK 100 million. Proforma sales for ÅF operations in Norway are now approximately NOK 700 million, and there are ambitions for further growth.
The third-quarter results have not been charged with integration costs for Epsilon or other recent acquisitions. The integration of Epsilon was concluded as planned as the second quarter drew to a close. Cost synergies are estimated to exceed SEK 80 million a year, with the full effect from 2014. The acquisition of Epsilon has significantly strengthened our client offering and in the third quarter i.a. resulted in a major assignment for Volvo Cars.
ÅF grew its business by approximately 50 percent in the third quarter. At the time of writing ÅF has 7,000 highly qualified employees in around 20 countries, backed up by a network of 17,000 independent consultants. Our co-workers are our most important asset, so it is extremely gratifying to note that ÅF's appeal as an employer has never been stronger. On 8 October ÅF was ranked as the second most popular place to work in the Career Barometer 2013/2014 survey conducted by Universum among some 3,700 professional engineers in Sweden. In the third quarter ÅF was also named by Universum as one of the top 20 employers in Europe. The fact that the ÅF brand and the company itself are rated so highly as an ideal employer for engineers in Sweden and internationally is a huge asset.
ÅF's most important objective is to continue to generate levels of profitability that place us among the very best performers in our industry and to grow by approximately 15 percent per year through more or less equal shares of organic and acquired growth.
Group Head Office:
ÅF AB (publ), SE-169 99 Stockholm, Sweden
Visitors' address: Frösundaleden 2, 169 70 Solna, Sweden
Tel. +46 10 505 00 00 Fax +46 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 11.00 on 21 October, 2013.
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.
This is a translation of the Swedish original. The Swedish text is the binding version and shall prevail in the event of any discrepancies.
The full report including tables (pdf) is available for download