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Studsvik — Interim / Quarterly Report 2008
Oct 29, 2008
3208_10-q_2008-10-29_8265430d-ad5d-450f-84c2-f88ec72ac89c.pdf
Interim / Quarterly Report
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Interim Report January-September 2008
- Profi t for the period January-September was SEK 20.7 million (46.8). Adjusted for non-recurring items, the profi t was substantially unchanged. •
- Positive earnings trend for most segments during the quarter. •
- Poor performance in the US due to temporary closure of the Erwin facility. The facility will be brought back into operation towards the end of the fourth quarter. •
- The consulting company ALARA Engineering AB was acquired after the close of the reporting period. •
| July September 2008 |
July September 2007 |
January September 2008 |
January September 2007 |
Full year 2007 |
|
|---|---|---|---|---|---|
| Net sales, SEK million | 274.2 | 325.1 | 964.8 | 944.1 | 1,314.7 |
| Operating profi t, SEK million | –4.4 | 8.8 | 20.7 | 46.8 | 62.1 |
| Profi t after tax, SEK million | –3.7 | 4.6 | 8.4 | 34.2 | 47.2 |
| Profi t per share after tax, SEK | –0.31 | 0.58 | 0.68 | 4.18 | 5.65 |
| Equity per share, SEK | 70.28 | 68.30 | 70.28 | 68.30 | 69.58 |
| Equity-assets ratio, % | 42.3 | 43.3 | 42.3 | 43.3 | 42.5 |
Net sales
Net sales for the third quarter amounted to SEK 274.2 million (325.1) and for the period of January to September, to SEK 964.8 million (944.1). The fall in sales in the third quarter is attributable to the USA and the Erwin operations, where production closed down as planned in the third quarter. Other operations performed well and, in local currency, mainly better than in the previous year. On a like-for-like basis, organic growth in local currency for the period January-September was about 3 per cent. Sales abroad amounted to 84.3 (86.7) per cent of net sales.
Profi t
The operating profi t for the third quarter amounted to SEK –4.4 million (8.8) and for the period of January to September, to SEK 20.7 million (46.8). Most segments report a positive earnings trend compared with the previous year. The US operations report a loss, mainly as a consequence of the production stop at the Erwin facility in the third quarter. In comparison with the corresponding period in 2007, the production stop impacted operating profi t by SEK 11.5 million.
Non-recurring items are included in the operating profi ts reported for the period January to September in 2007 and 2008 as in the table below.
Period
| Q1 2007 Capital gain | SEK +23,3 million |
|---|---|
| Q2 2007 Costs of discontinued | |
| acquisition process | SEK –10,5 million |
| Q1 2008 Restructuring costs, USA | SEK –12,6 million |
For the period January-September the operating profi t, adjusted for non-recurring items, was substantially unchanged, SEK 33.3 million (34.0).
Foreign exchange effects in connection with the translation of foreign subsidiaries' operating profi t amounted to SEK 1.0 million for the third quarter and SEK 1.0 million for January-September.
Sweden
Net sales for the third quarter amounted to SEK 38.4 million (27.7) and for the period of January to September, to SEK 109.8 million (91.9). The operating profi t for the third quarter amounted to SEK 11.5 million (4.7) and for the period of January to September, to SEK 22.0 million (14.7).
The positive trend of operations also continued in the third quarter. The incineration facility ran at full capacity and capacity utilization was good at the facility for treatment of metallic material as well as the production line for treatment of large components. The order books provide the basis for continued high capacity utilization.
United Kingdom
Net sales for the third quarter amounted to SEK 34.2 million (34.6) and for the period of January to September, to SEK 113.9 million (90.2). The operating profi t for the third quarter amounted to SEK 0.6 million (–0.2) and for the period of January to September, to SEK 2.0 million (2.1).
Both Waste Treatment and Decommissioning operations recovered somewhat in the third quarter, but delays in the Sellafi eld project affected sales and earnings negatively also in the third quarter.
Market activity in both Waste Treatment and Decommissioning continues to be high and several contracts are being negotiated. Studsvik's associated company, Nuclear Waste Management (NWM), which has been responsible for operation of the United Kingdom's low-level radioactive waste depository since April 1, is developing well.
Construction of the treatment facility for metallic waste in Workington is in progress. The investment will be completed at the end of 2008 and the facility will be brought into operation successively from the turn of the year. The investment cost is about SEK 50 million.
Germany
Net sales for the third quarter amounted to SEK 98.1 million (109.3) and for the period of January to September, to SEK 277.5 million (256.7). The operating profi t for the third quarter amounted to SEK 3.1 million (8.3) and for the period of January to September, to SEK 14.4 million (21.3).
Consulting services for nuclear facilities in operation continued to show a positive trend. The number of consulting contracts is rising and consequently the number of consulting hours charged. The pure service and maintenance assignments, carried out at the nuclear power plants' annual refuelling and maintenance outages, vary in scope between years and quarters. Studsvik's share of the market continues to be high, but the number of refuelling and maintenance days was lower in the German power industry in 2008 than in 2007, which affected sales negatively in the third quarter. The component manufacturing operations increased in scope, but did not compensate in terms of sales and earnings for the low activity in the German decommissioning market in the third quarter. The order situation is good in the German operations.
USA
Net sales for the third quarter amounted to SEK 47.4 million (105.3) and for the period of January to September, to SEK 272.0 million (333.3). The operating profi t for the third quarter amounted to SEK –17.3 million (0.1) and for the period of January to September, to SEK –5.2 million (10.8). The profi t for 2008 includes restructuring costs for the Memphis-based operations of SEK 12.6 million.
The depository for medium-level waste in Barnwell, South Carolina, closed as planned at the end of June. As an expected result of the closure, deliveries of material to Studsvik's Erwin facility ceased and the facility was then temporarily taken out of operation. In comparison with the corresponding period in 2007, the production stop impacted operating profi t by SEK 11.5 million.
During the quarter Studsvik has worked further on its market initiative of offering, in cooperation with Waste Control Specialists (WCS), a competitive storage alternative, based on treatment of waste in the Studsvik Erwin facility and storage at the WCS facility in Texas. The requisite permits and licenses for the new business model were obtained after the close of the reporting period and operations at the Erwin facility will be resumed towards the end of the fourth quarter.
The restructuring of the Memphis-based operations has resulted in a return to profi tability in waste treatment and a higher operating profi t in the third quarter than in the corresponding period last year. The general fall in profi tability in the transport market, with downward price pressure and high fuel costs, continues to apply. Despite vigorous structural measures, the logistics operations reported a loss in the third quarter. However, the loss has been reduced compared with the second quarter.
Global Services
Net sales for the third quarter amounted to SEK 41.6 million (33.3) and for the period of January to September, to SEK 133.6 million (126.1). The operating profi t for the third quarter amounted to SEK 3.6 million (2.2) and for the period of January to September, to SEK 7.6 million (5.6).
The materials technology operations developed positively in the third quarter. Sales and operating profi t improved compared with the corresponding period in 2007. The order books are healthy and the volume of tenders is high. The extensive preparations for receiving and testing irradiated fuel from the United Kingdom within the framework of the multi-year contract signed with Nexia Solutions/British Energy, are in progress.
Sales in the product area of fuel optimization software recovered after a weak start to the year. The operating profi t after three quarters is at the same level as last year. Tendering activity in the software products area is very high.
After the close of the reporting period ALARA Engineering AB, a small Swedish-based consulting company concentrating on the international nuclear power industry, was acquired. At the time of acquisition ALARA Engineering AB had annual sales of about SEK 5 million.
Investments
Investments for the Group in the third quarter amounted to SEK 20.2 million (48.8) and for the period of January to September, to SEK 60.3 million (101.9). The investments for the third quarter include expansion investments of SEK 14.3 million, mainly in waste management in the United Kingdom.
Cash fl ow
Cash fl ow from operating activities before working capital changes in the third quarter was SEK 13.7 million (7.7) and SEK 55.6 million (37.0) for the period January-September. Working capital increased in the third quarter by SEK 14.4 million (34.8) and in the period January to September by SEK 70.5 million (51.1). The increase in the third quarter is predominantly attributable to a payment for fi nal disposal of spent fuel from the company's shut-down R2 reactor.
Cash fl ow from operating activities after investments in the third quarter was SEK –22.4 million (–71.5) and SEK –71.1 million (–65.3) for the period January-September.
Financial position and liquidity
Cash and cash equivalents, including current investments, amounted to SEK 124.3 million (150.6).
Equity amounted to SEK 577.6 million (559.1).
The equity-assets ratio was 42.3 per cent (43.3). Interestbearing liabilities amounted to SEK 361.7 million (321.5).
The Group's total borrowing was conducted entirely in foreign currencies through investments and business acquisitions in the USA, Germany and the United Kingdom. The average duration of the loan portfolio was 2.5 years.
Personnel
The average number of employees was 1,115 (1,147).
Parent company
Parent company operations comprise the co-ordination of tasks for the Group and assets mainly consist of shares in subsidiaries. The Parent Company's net sales during the third quarter amounted to SEK 2.8 million (1.4) and for the period of January to September, to SEK 8.1 million (4.1). The operating profi t for the third quarter amounted to SEK –6.0 million (–6.0) and for the period of January to September, to SEK –20.1 million (–30.2). The profi t after fi nancial items for the period of January to September was SEK –19.5 million (5.7).
The profi t for the previous year includes a capital gain of SEK 35.0 million from the sale of Studsvik Stensand AB in the fi rst quarter and costs of a discontinued acquisition process in the UK of SEK –10.2 million in the second quarter.
The parent company's investments amounted to SEK 0.1 million (0.1). Cash and cash equivalents amounted to SEK 73.0 million (89.9) and interest-bearing liabilities to SEK 206.2 million (205.2).
Nomination committee
Before the 2009 Annual General Meeting Studsvik's nomination committee is composed as follows:
Jan Barchan, Briban Invest AB (also a member of the Board of Studsvik AB) Anders Oscarsson, SEB fonder
Anders Ullberg, Chairman of the Board of Studsvik
A fourth committee member will be appointed.
Risks and uncertainties
Studsvik operates on an international market that is exposed to competition. With operations in seven countries Studsvik is exposed to both business and fi nancial risks and uncertainties. The business uncertainties include the fact that Studsvik handles radioactive material and waste, which means that some of the operations must be licensed and are subject to decisions by govern ment agencies, offi cial regulations and supervision. Studsvik considers that it fulfi ls the requirements imposed by such regulations. The Group's high security culture means that it has a high capacity for adjustment to new rules and terms of reference.
The business uncertainties also include the fact that issues concerning nuclear technology may be subject to various expressions of opinion and debate. In such a context it cannot be ruled out that opinion may emerge on matters that directly or indirectly restrict Studsvik's scope of business action. Studsvik works consistently to maintain a high level of public confi dence. Its approach to the world around is characterized by dialogue and the principle of the greatest possible transparency.
Financial risks and uncertainties mainly include fl uctuations in exchange rates and interest rates, and counterparty risk, i.e. that the Group is exposed to losses due to a counterparty's insolvency.
The responsibility for assessing risk lies with the respective subsidiary, but is examined and followed up at Group level. An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report for 2007, which is also available on the company's website.
Apart from these risks, no further signifi cant risks are estimated to have arisen.
Outlook
Modernization and increasing output of nuclear power plants is taking place in several of the countries where Studsvik operates. Within the framework of such projects, services of the type Studsvik offers, including waste treatment, materials testing and consulting services are in demand. Decommissioning of nuclear facilities is taking place and is expected to continue to expand in the British market and to increase somewhat in Germany as well.
The number of refuelling and maintenance outage days in the Germany nuclear power industry will be fewer in 2008 than in 2007, which means slightly lower demand for service and maintenance.
The fi erce competition in the American waste treatment market will persist and leave its mark on some parts of the business. Studsvik's market initiative after the closure of Barnwell, of offering both treatment and storage of waste, has been positively received and means a resumption of production at the Erwin facility towards the end of the fourth quarter.
The suspension of production at the Erwin facility in the third and parts of the fourth quarter means that USA will not achieve last year's sales level. Other segments are assessed to be in a position to report good organic growth.
Accounting policies
This interim report was prepared in accordance with IAS 34 and the Swedish Financial Reporting Board recommendation RFR 2.1. The new recommendations that apply as of January 1, 2008 have not affected the Group's fi nancial performance or position.
On behalf of the Board of Directors
Magnus Groth President
Review report
We have performed a review of the interim report for Studsvik AB (publ) for the period January 1 to September 30, 2008. The Board of Directors and the President are responsible for the preparation and presentation of this interim fi nancial report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review consists of making inquiries, primarily of persons responsible for fi nancial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially more limited in scope than an audit that is conducted in accordance with Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all signifi cant matters that might be identifi ed in an audit. Therefore, the conclusion that is expressed on the basis of a review does not give the same level of assurance as a conclusion based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim report does not, in all material respects, accord with IAS 34 and the Annual Accounts Act and, for the parent company, with the Annual Accounts Act.
Stockholm, October 29, 2008
PricewaterhouseCoopers AB
Magnus Brändström Göran Tidström Authorized public accountant Authorized public accountant Auditor in charge
Time schedule for fi nancial information
Year-end Report 2008 February 12, 2009 Interim Report January-March 2009 April 22, 2009 Interim Report January-June 2009 July 21, 2009 Interim Report January-September 2009 November 2, 2009
For further information contact
Magnus Groth, President and Chief Executive Offi cer, +46 155 22 10 86 or +46 709 67 70 86 (cell phone) Jerry Ericsson, Chief Financial Offi cer, +46 155 22 10 32 or +46 709 67 70 32 (cell phone).
The interim report will be presented at a conference call to be held in English, on October 29 at 3.30 p.m. CET.
See also www.studsvik.se
Consolidated income statement
| Amounts in SEK million | July | July | January | January | |
|---|---|---|---|---|---|
| September 2008 | September 2007 | September 2008 | September 2007 | Full year 2007 | |
| Net sales | 274.2 | 325.1 | 964.8 | 944.1 | 1,314.7 |
| Cost of services sold | –210.5 | –254.7 | –735.5 | –717.0 | –1,000.1 |
| Gross profi t | 63.7 | 70.4 | 229.3 | 227.1 | 314.6 |
| Other operating income | 0.3 | 4.8 | 1.8 | 31.9 | 25.1 |
| Selling and marketing expenses | –12.3 | –17.5 | –39.3 | –44.8 | –53.8 |
| Administrative expenses | –46.7 | –38.6 | –140.9 | –131.3 | –180.4 |
| Research and development costs | –9.1 | –5.8 | –27.3 | –28.7 | –41.8 |
| Share in earnings from associated companies | 1.4 | - | 1.4 | - | - |
| Other operating expenses | –1.7 | –4.5 | –4.3 | –7.4 | –1.6 |
| Operating profi t | –4.4 | 8.8 | 20.7 | 46.8 | 62.1 |
| Financial income | 1.5 | 2.4 | 4.1 | 7.5 | 8.7 |
| Financial expenses | –4.6 | –6.6 | –15.5 | –18.4 | –24.8 |
| Profi t after fi nancial items | –7.5 | 4.6 | 9.3 | 35.9 | 46.0 |
| Income tax | 3.8 | 0.0 | –0.9 | –1.7 | 1.2 |
| Profi t for the period | –3.7 | 4.6 | 8.4 | 34.2 | 47.2 |
| Attributable to | |||||
| – Parent company's shareholders | –2.5 | 4.7 | 5.6 | 34.3 | 46.5 |
| – Minority interest | –1.2 | –0.1 | 2.8 | –0.1 | 0.7 |
| Earnings per share, SEK | |||||
| – Before dilution | –0.31 | 0.58 | 0.68 | 4.18 | 5.65 |
| – After dilution | –0.31 | 0.58 | 0.68 | 4.18 | 5.65 |
Condensed consolidated balance sheet
Amounts in SEK million
| December 2007 | ||
|---|---|---|
| 323.0 | 308.1 | 311.7 |
| 51.6 | 54.5 | 57.0 |
| 434.1 | 395.3 | 406.6 |
| 79.4 | 64.8 | 67.3 |
| 888.1 | 822.7 | 842.6 |
| 33.0 | 8.8 | 22.5 |
| 196.2 | 202.3 | 206.0 |
| 123.8 | 106.6 | 98.0 |
| 124.3 | 150.6 | 176.9 |
| 477.3 | 468.3 | 503.4 |
| 1,365.4 | 1,291.0 | 1,346.0 |
| 570.9 | 556.8 | 568.4 |
| 6.7 | 2.3 | 3.4 |
| 237.7 | 285.6 | 196.4 |
| 95.2 | 94.5 | 102.2 |
| 9.5 | 4.0 | 8.0 |
| 342.4 | 384.1 | 306.6 |
| 78.1 | 48.5 | 63.3 |
| 124.1 | 35.8 | 122.2 |
| 243.2 | 263.5 | 282.1 |
| 445.4 | 347.8 | 467.6 |
| 1,365.4 | 1,291.0 | 1,346.0 |
| 197.3 | 169.4 | 181.5 |
| 58.0 | 33.5 | 93.3 |
| September 2008 | September 2007 |
Changes in equity
Amounts in SEK million
| September 2008 | September 2007 | December 2007 | |
|---|---|---|---|
| Equity at the beginning of the period | 571.8 | 558.7 | 558.7 |
| Dividend to shareholders | –16.4 | –16.4 | –16.4 |
| Net profi t for the period | 8.4 | 34.2 | 47.2 |
| Change in translation differences | 13.8 | –17.4 | –17.7 |
| Equity at the end of the period | 577.6 | 559.1 | 571.8 |
Condensed consolidated cash fl ow statement
| Amounts in SEK million | July | July | January | January | |
|---|---|---|---|---|---|
| September 2008 | September 2007 | September 2008 | September 2007 | Full year 2007 | |
| Operating activities | |||||
| Operating profi t | –4.4 | 8.8 | 20.7 | 46.8 | 62.1 |
| Depreciation | 16.3 | 16.5 | 47.9 | 46.1 | 60.1 |
| Other non-cash items | 5.3 | –3.6 | 1.0 | –24.5 | –22.6 |
| 17.2 | 21.7 | 69.6 | 68.4 | 99.6 | |
| Financial items, net | –3.4 | –4.2 | –11.4 | –10.9 | –16.1 |
| Income tax paid | –0.1 | –9.8 | –2.6 | –20.5 | –6.8 |
| Cash fl ow from operating activities before | |||||
| changes in working capital | 13.7 | 7.7 | 55.6 | 37.0 | 76.7 |
| Changes in working capital | –14.4 | –34.8 | –70.5 | –51.1 | –37.7 |
| Cash fl ow from operating activities | –0.7 | –27.1 | –14.9 | –14.1 | 39.0 |
| Investing activities | |||||
| Investments | –20.2 | –44.4 | –60.3 | –97.0 | –122.4 |
| Other changes from investing activities | –1.5 | - | 4.1 | 45.8 | 47.0 |
| Cash fl ow from investing activities | –21.7 | –44.4 | –56.2 | –51.2 | –75.4 |
| Cash fl ow from operating activities after | |||||
| investments and other changes from investing activities |
–22.4 | –71.5 | –71.1 | –65.3 | –36.4 |
| Financing activities | |||||
| Change in borrowings | 25.3 | –18.4 | 32.7 | –15.9 | –19.1 |
| Dividend to shareholders | - | - | –16.4 | –16.4 | –16.4 |
| Cash fl ow from fi nancing activities | 25.3 | –18.4 | 16.3 | –32.3 | –35.5 |
| Changes in liquid assets | 2.9 | –89.9 | –54.8 | –97.6 | –71.9 |
| Liquid assets at the beginning of the year | 120.8 | 240.8 | 176.9 | 247.6 | 247.6 |
| Translation difference in liquid assets | 0.6 | –0.3 | 2.2 | 0.6 | 1.2 |
| Liquid assets at the end of the period | 124.3 | 150.6 | 124.3 | 150.6 | 176.9 |
Financial ratios for the Group
| Amounts in SEK million | January September 2008 |
January September 2007 |
Full year 2007 |
|---|---|---|---|
| Operating profi t | |||
| Operating profi t before depreciation | 68.6 | 92.9 | 122.2 |
| Margins | |||
| Operating margin before depreciation, % | 7.1 | 9.8 | 9.3 |
| Operating margin, % | 2.2 | 5.0 | 4.7 |
| Profi t margin, % | 1.0 | 3.8 | 3.5 |
| Profi tability | |||
| Return on operating capital, % | 3.6 | 9.0 | 9.0 |
| Return on capital employed, % | 3.6 | 8.1 | 7.9 |
| Return on equity, % | 1.3 | 8.2 | 8.2 |
| Capital structure | |||
| Operating capital | 815.1 | 730.0 | 713.6 |
| Capital employed | 939.4 | 880.6 | 890.5 |
| Equity | 577.6 | 559.1 | 571.8 |
| Interest-bearing net debt | 237.4 | 190.9 | 141.8 |
| Net debt-equity ratio | 0.4 | 0.3 | 0.2 |
| Interest cover ratio | 1.6 | 3.0 | 2.9 |
| Equity-assets ratio, % | 42.3 | 43.3 | 42.5 |
| Cash fl ow | |||
| Self fi nancing ratio | neg | neg | 0.3 |
| Investments | 60.3 | 101.9 | 127.3 |
| Employees | |||
| Averade number of employees | 1,115 | 1,147 | 1,141 |
| Net sales per employee | 1.2 | 1.1 | 1.2 |
Data per share
| July July |
January | January | ||||
|---|---|---|---|---|---|---|
| September 2008 | September 2007 | September 2008 | September 2007 | Full year 2007 | ||
| Number of shares at the end of the period | 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 | |
| Average number of shares | 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 | |
| Earnings per share before dilution, SEK | –0.31 | 0.58 | 0.68 | 4.18 | 5.65 | |
| Earnings per share after dilution, SEK | –0.31 | 0.58 | 0.68 | 4.18 | 5.65 | |
| Equity per share, SEK | 70.28 | 68.30 | 70.28 | 68.30 | 69.58 |
Net sales per geographical segment
| Amounts in SEK million | July | July | January | January | |
|---|---|---|---|---|---|
| September 2008 | September 2007 | September 2008 | September 2007 | Full year 2007 | |
| Sweden | 42.5 | 30.7 | 151.5 | 126.1 | 258.7 |
| Europe, excluding Sweden | 168.3 | 172.9 | 494.1 | 425.8 | 564.3 |
| North America | 60.2 | 113.8 | 304.7 | 371.2 | 463.6 |
| Asia | 3.2 | 5.8 | 14.3 | 18.7 | 25.9 |
| Other markets | - | 1.9 | 0.2 | 2.3 | 2.2 |
| Total | 274.2 | 325.1 | 964.8 | 944.1 | 1,314.7 |
Financial data per segment
| Amounts in SFK million | ||
|---|---|---|
| Amounts in SEK million | July | July | January | January | |
|---|---|---|---|---|---|
| September 2008 | September 2007 | September 2008 | September 2007 | Full year 2007 | |
| Sweden | |||||
| Net sales | 38.4 | 27.7 | 109.8 | 91.9 | 135.4 |
| Operating profi t | 11.5 | 4.7 | 22.0 | 14.7 | 28.2 |
| Assets | 107.0 | 92.6 | 107.0 | 92.6 | 121.1 |
| Liabilities | 65.1 | 50.1 | 65.1 | 50.1 | 58.8 |
| Investments | 0.5 | 6.1 | 6.9 | 27.6 | 33.9 |
| Depreciation and amortization | 2.1 | 1.5 | 6.0 | 4.3 | 5.8 |
| Average number of employees | 78 | 76 | 77 | 76 | 78 |
| United Kingdom | |||||
| Net sales | 34.2 | 34.6 | 113.9 | 90.2 | 129.1 |
| Operating profi t | 0.6 | –0.2 | 2.0 | 2.1 | 3.0 |
| Assets | 114.2 | 97.7 | 114.2 | 97.7 | 89.9 |
| Liabilities | 73.2 | 85.1 | 73.2 | 85.1 | 47.8 |
| Investments | 10.0 | 35.7 | 16.5 | 39.5 | 42.4 |
| Depreciation and amortization | 0.8 | 0.3 | 3.0 | 1.0 | 2.4 |
| Average number of employees | 94 | 64 | 94 | 56 | 65 |
| Germany | |||||
| Net sales | 98.1 | 109.3 | 277.5 | 256.7 | 341.3 |
| Operating profi t | 3.1 | 8.3 | 14.4 | 21.3 | 25.3 |
| Assets | 268.9 | 232.1 | 268.9 | 232.1 | 244.4 |
| Liabilities | 193.4 | 175.6 | 193.4 | 175.6 | 179.1 |
| Investments | 1.2 | 1.2 | 5.5 | 14.7 | 17.6 |
| Depreciation and amortization | 2.4 | 2.5 | 6.5 | 4.2 | 5.2 |
| Average number of employees | 569 | 606 | 569 | 592 | 564 |
| USA | |||||
| Net sales | 47.4 | 105.3 | 272.0 | 333.3 | 427.7 |
| Operating profi t | –17.3 | 0.1 | –5.2 | 10.8 | 6.3 |
| Assets | 592.2 | 634.1 | 592.2 | 634.1 | 624.6 |
| Liabilities | 315.9 | 330.9 | 315.9 | 330.9 | 326.3 |
| Investments | 3.2 | 4.3 | 16.5 | 12.1 | 21.4 |
| Depreciation and amortization | 8.5 | 9.5 | 24.6 | 28.2 | 35.5 |
| Average number of employees | 135 | 221 | 165 | 223 | 234 |
| Global Services | |||||
| Net sales | 41.6 | 33.3 | 133.6 | 126.1 | 178.8 |
| Operating profi t | 3.6 | 2.2 | 7.6 | 5.6 | 14.4 |
| Assets | 101.4 | 162.3 | 101.4 | 162.3 | 183.3 |
| Liabilities | 54.4 | 101.1 | 54.4 | 101.1 | 158.7 |
| Investments | 1.1 | 0.4 | 5.5 | 4.3 | 5.3 |
| Depreciation and amortization | 1.5 | 2.1 | 5.0 | 6.1 | 8.1 |
| Average number of employees | 128 | 119 | 124 | 117 | 118 |
| Other1) | |||||
| Net sales | 23.3 | 27.5 | 89.5 | 86.6 | 159.1 |
| Operating profi t | –5.9 | –6.3 | –20.1 | –30.9 | –38.3 |
| Assets | 401.1 | 410.7 | 401.1 | 410.7 | 389.5 |
| Liabilities | 305.2 | 322.5 | 305.2 | 322.5 | 285.0 |
| Investments | 4.2 | 1.2 | 9.4 | 3.8 | 6.7 |
| Depreciation and amortization | 1.0 | 0.6 | 2.8 | 2.3 | 3.1 |
| Average number of employees | 87 | 81 | 86 | 83 | 82 |
| Group eliminations | |||||
| Net sales | –8.8 | –12.6 | –31.5 | –40.7 | –56.7 |
| Operating profi t | - | - | - | 23.22) | 23.22) |
| Assets | –219.4 | –338.5 | –219.4 | –338.5 | –306.8 |
| Liabilities | –219.4 | –333.4 | –219.4 | –333.4 | –281.6 |
| Investments | - | - | - | - | - |
| Depreciation and amortization | - | - | - | - | - |
1) Other operations mainly refer to the Parent Company and AB SVAFO. AB SVAFO is responsible for management of older state-owned research waste and decommissioning of facilities related to previous state-owned operations. The costs of the operations are covered by the Nuclear Waste Fund.
2) Operating profi t includes the capital gain on the sale of the shares in Studsvik Stensand AB amounting to SEK 23.3 million.
Quarterly review
| Amounts in SEK million | 2006 | 2007 | 2008 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
| Net sales | 251.6 | 317.5 | 321.3 | 329.2 | 273.2 | 345.8 | 325.1 | 370.6 | 320.0 | 370.6 | 274.2 |
| Operating expenses | –251.2 | –290.8 | –298.3 | –308.0 | –251.0 | –330.0 | –316.3 | –355.3 | –327.0 | –338.5 | –278.6 |
| Operating profi t | 0.4 | 26.7 | 23.0 | 21.2 | 22.2 | 15.8 | 8.8 | 15.3 | –7.0 | 32.1 | –4.4 |
| Financial items, net | –5.2 | –6.4 | –5.7 | 3.0 | –3.7 | –3.0 | –4.2 | –5.3 | –3.5 | –4.8 | –3.1 |
| Profi t after fi nancial items | –4.8 | 20.3 | 17.3 | 24.2 | 18.5 | 12.8 | 4.6 | 10.0 | –10.5 | 27.3 | –7.5 |
Parent company income statement
| Amounts in SEK million | July | July | January | January | |
|---|---|---|---|---|---|
| September 2008 | September 2007 | September 2008 | September 2007 | Full year 2007 | |
| Net sales | 2.8 | 1.4 | 8.1 | 4.1 | 5.6 |
| Cost of services sold | –1.2 | –1.1 | –4.7 | –3.7 | –5.4 |
| Gross profi t | 1.6 | 0.3 | 3.4 | 0.4 | 0.2 |
| Other operating costs | –7.6 | –6.3 | –23.5 | –30.6 | –38.5 |
| Operating profi t | –6.0 | –6.0 | –20.1 | –30.2 | –38.3 |
| Financial net | 0.2 | –0.6 | 0.6 | 35.9 | 35.7 |
| Profi t before tax | –5.8 | –6.6 | –19.5 | 5.7 | –2.6 |
| Appropriations | 0.0 | 0.0 | 0.0 | 0.0 | 0.3 |
| Income tax | 2.8 | 1.8 | 6.5 | 9.4 | 10.5 |
| Profi t for the period | –3.0 | –4.8 | –13.0 | 15.1 | 8.2 |
Parent company balance sheet
Amounts in SEK million
| September 2008 | September 2007 | December 2007 | |
|---|---|---|---|
| Assets | |||
| Tangible fi xed assets | 0.8 | 1.8 | 1.7 |
| Financial fi xed assets | 980.4 | 918.1 | 947.1 |
| Total fi xed assets | 981.2 | 919.9 | 948.8 |
| Current assets | 38.2 | 73.3 | 56.1 |
| Liquid assets | 73.0 | 89.9 | 91.2 |
| Total current assets | 111.2 | 163.2 | 147.3 |
| Total assets | 1,092.4 | 1,083.1 | 1,096.1 |
| Equity and liabilities | |||
| Equity | 803.7 | 813.2 | 833.1 |
| Untaxed reserves | 6.9 | 7.2 | 6.9 |
| Non-current liabilities | 237.0 | 209.3 | 193.2 |
| Current liabilities | 44.8 | 53.4 | 62.9 |
| Total liabilities | 281.8 | 262.7 | 256.1 |
| Totalt equity and liabilities | 1,092.4 | 1,083.1 | 1,096.1 |
Major shareholders, September 30, 2008
| Number of shares | Share, % | |
|---|---|---|
| The Karinen family | 1,600,012 | 19.5 |
| Briban Invest AB | 1,283,492 | 15.6 |
| Allianz Global Inv | 714,561 | 8.7 |
| Goldman Sachs International Ltd | 544,693 | 6.6 |
| Bank of New York, London | 406,968 | 5.0 |
| State Street Bank, Boston | 263,157 | 3.2 |
| Citibank NA, London | 198,318 | 2.4 |
| JP Morgan Chase Bank, England | 184,890 | 2.3 |
| Invus Investment AB | 184,800 | 2.2 |
| Metzler Euro SM CO FD | 150,000 | 1.8 |
| Total ten largest shareholders - holdings | 5,530,891 | 67.3 |
| Other shareholders | 2,687,720 | 32.7 |
| Total | 8,218,611 | 100.0 |
On October 17 Merrill Lynch announced that it had increased its ownership of Studsvik to 5.2 per cent of shares and votes.
The Studsvik share
During the third quarter, the share price varied between a high of SEK 140 on July 23 and a low of SEK 113 on July 14. The opening price was SEK 155 at the beginning of the year and the closing price on September 30 was SEK 113.25. During the third quarter, 0.4 million shares were traded.
Facts about Studsvik
Studsvik offers a range of advanced technical services to the international nuclear power industry in such areas as waste treatment, decom missioning, engineering & services, and operating effi ciency. The company has 60 years experience of nuclear technology and radiological services. Studsvik is a leading supplier on a rapidly expanding market. The business is conducted through fi ve segments: Sweden, United Kingdom, Germany, USA and Global Services. Studsvik has 1,200 employees in 7 countries and the company's shares are listed on the NASDAQ OMX Stockholm.
This report is a translation of the Swedish statutory report. In the event of any discrepancies between this document and the Swedish original, the latter shall govern. The content of this interim repot may not, in whole or part, be reproduced or stored in a machine-readable medium without the previous permission of Studsvik AB (publ).
Production/Graphic design: Studsvik AB Photo: Jan Lindblad Jr, Janne Höglund
Studsvik AB
P.O. Box 556, SE-611 10 Nyköping, Sweden Tel +46 155 22 10 00 Fax +46 155 26 30 00 E-mail [email protected] www.studsvik.com