ÅF AB Year-end Report January - December 2012
|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|
Fourth quarter 2012
- Net sales totalled SEK 1,847 million (1,457)
- Operating profit totalled SEK 156 million (148)
- Operating margin was 8.5 percent (10.2)
- Earnings per share, before dilution: SEK 3.23 (3.11)
- Net sales totalled SEK 5,796 million (5,124)
- Operating profit totalled SEK 481 million (426)
- Operating margin was 8.3 percent (8.3)
- Earnings per share, before dilution: SEK 10.13 (9.07)
- The Board proposes a dividend per share for 2012 of SEK 5.50 (5.00)
A few words from the President, Jonas Wiström:
ÅF's fourth quarter operating profit of SEK 156 million (148) was the highest so far in the history of the company.
The operating margin was 8.5 percent (10.2) for the quarter, and 8.3 percent (8.3) for the year as a whole. The lower margin in the fourth quarter was mainly a consequence of external transaction costs totalling approximately SEK 13 million for the acquisitions of Epsilon and Advansia, and a lower than anticipated result from one of the projects performed by the International Division.
It is particularly pleasing to note that, despite the increasingly challenging market conditions, ÅF's capacity utilisation rate has continued to rise and cash flow has remained strong. Overall growth in the fourth quarter rose to 27 percent and organic growth was 7 percent.
The highest level of profitability in the fourth quarter was reported by the Industry Division with an operating margin of 13.0 percent (14.0). The Infrastructure Division improved its earnings by 75 percent and reported an operating margin of 12.3 percent (10.3). Technology reported an operating margin of 10.7 percent (12.0) in the fourth quarter, while the figure for the International Division, which continues to work in what remains a relatively weak market in Europe, was 5.9 percent (6.4).
The fourth-quarter acquisitions of Epsilon (29 November) with just over 1,600 employees, and the Norwegian company Advansia (1 October) with more than 100 employees have contributed to significantly strengthening ÅF's position in the market. Both acquisitions support ÅF's strategy of being number one or two in its chosen markets. The acquisition of Epsilon means that ÅF is now one of the leading names in the market for advanced product development, while Advansia strengthens the Infrastructure Division's project management operations in both Norway and Sweden. The integration of both companies is proceeding according to plan.
The market prospects for ÅF in 2013 do not present a uniform picture. While the outlook would appear to remain very good for infrastructure projects, the prospects for investments in industry and energy are less certain.
ÅF's most important objective is to continue to generate levels of profitability that place us among the very best performers in our industry - regardless of the state of the economy. The company now has some 6,900 highly qualified consultants and other members of staff, and our ambition is to continue to grow, both organically and through acquisitions, without compromising profitability.
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 / firstname.lastname@example.org
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 CET on 5 February 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