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Press release

Press release

ÅF AB Interim report January - September 2014

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, Executive VP, Corporate Communication +46 70 657 20 26

Third quarter 2014

  • Net sales amounted to SEK 1,873 million (1,770)
  • Operating profit totalled SEK 120 million (130)
  • Operating margin was 6.4 percent (7.4)
  • Operating profit, excluding non-recurring items, totalled SEK 134 million (130)
  • Operating margin, excluding non-recurring items, was 7.2 percent (7.4)
  • Profit after tax totalled SEK 79 million (92)
  • Earnings per share, before dilution: SEK 1.03 (1.15)

January - September 2014

  • Net sales amounted to SEK 6,429 million (6,046)
  • Operating profit totalled SEK 528 million (449)
  • Operating margin was 8.2 percent (7.4)
  • Operating profit, excluding non-recurring items, totalled SEK 542 million (504)
  • Operating margin, excluding non-recurring items, was 8.4 percent (8.3)
  • Profit after tax totalled SEK 382 million (319)
  • Earnings per share, before dilution: SEK 4.95 (4.02)

A few words from the President, Jonas Wiström:

ÅF's operating profit, excluding non-recurring effects from the sale of Russian subsidiary Lonas in July, amounted to SEK 134 million (130). These are the highest third quarter earnings ÅF has ever reported, and the same applies to the first nine months of the year. The adjusted operating margin was 7.2 percent (7.4) for the third quarter.

The highest profitability was delivered by the Industry Division and the Infrastructure Division with operating margins of 9.5 (9.3) and 8.0 (9.4) percent, respectively. It is satisfying that these divisions, with over half of ÅF's total workforce, continue to gain market share and grow by about 15 percent in their respective fields. The International Division reported an operating margin of 5.9 percent (7.7), which is an improvement from 2014's first and second quarters. The Technology Division's market for advanced product development and IT continued to vary, and its operating margin was 5.0 percent (5.7).

ÅF's organic growth was 6.3 percent in the third quarter. ÅF now has a workforce of more than 7,000 highly qualified employees, with a stronger, more comprehensive range of engineering services than ever before. ÅF can also offer customers a pool of around 20,000 engineers from its own unique partner network. It is also gratifying that our strong position as an employer is being upheld. On 8 October ÅF was ranked, for the second year in a row, as Sweden's second most attractive employer in a survey conducted by Universum. Participating in the survey were 3,700 young professional engineers. ÅF was also named by Universum as one of the top 20 employers in Europe. It is a success factor that ÅF as a brand and a company is considered an ideal employer for engineers both in Sweden and internationally.

The outlook for the ÅF Group in late 2014 is cautiously positive. The infrastructure market remains strong in both Sweden and the rest of Scandinavia. Industrial activity remains at a satisfactory level, although uncertainty has increased slightly since the summer. The energy market continues to be influenced by low levels of investment in Europe, while opportunities continue to be good in the Asian and South American markets.

ÅF's most important goal is be the most profitable company among its closest comparable competitors in the industry and achieve an operating margin of at least 10 percent over a business cycle. This will be combined with growth - both organic and through acquisitions. In early 2014, new long-term objectives were introduced, which included increasing ÅF's revenue to at least EUR 2 billion by 2020.

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 / info@afconsult.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 a.m. on 21 October.

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