Earnings Release • May 8, 2012
Earnings Release
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8 May 2012
"The year got off to a very good start for Sweco. Operating profit reached SEK 231 million, which represents an increase of 69 per cent over the same period of last year and is our highest profit of all time for a single quarter. Operating margin was 12.1 per cent. The top performing business area was Sweco Norway, with an operating margin of 14.5 per cent.
"We are continuing to grow. Net sales for the first quarter of the year rose by 34 per cent, of which 17 per cent was organic growth. At the beginning of February we consolidated the acquired operations in FMC Group and now have around 1,700 employees in Finland. This strong growth is also visible in Norway, where net sales were up by 35 per cent.
"We are currently experiencing keen demand for Sweco's services. Another source of satisfaction is the continued positive trend for our industrial consultants in Finland. At present we see no signs of a market downturn, despite ongoing financial unrest in the Eurozone and general economic slowing. Nonetheless, there are remaining concerns about the future direction of the economy and market development is difficult to predict.
"Today Sweco has close to 7,600 employees. With a profitability and financial strength at the absolute top of the industry, we have excellent potential to continue growing both organically and through acquisitions. Our wide service offering and leading market position give us a solid platform for favourable long-term development."
Consolidated net sales rose by 34 per cent to SEK 1,909.6 million (1,420.7). Organic growth was 17 per cent and acquisition-driven growth was 17 per cent.
| Profit summary, SEK M | Jan-Mar 2012 |
Jan-Mar 2011 |
|---|---|---|
| Sweco Sweden | 138.5 | 106.1 |
| Sweco Norway | 68.4 | 37.6 |
| Sweco Finland | 15.8 | 1.9 |
| Sweco Central & Eastern Europe | 2.6 | $-3.2$ |
| Sweco Russia | $-2.8$ | $-0.3$ |
| Sweco Industry | 21.2 | 3.0 |
| Group-wide, etc. | $-12.4$ | $-8.5$ |
| Operating profit | 231.3 | 136.6 |
| Consolidated net financial items | $-6.2$ | $-2.1$ |
| Profit before tax | 225.1 | 134.5 |
Operating profit was up by 69 per cent to SEK 231.3 million (136.6). The increase of SEK 94.7 million is explained mainly by higher volumes, better prices and the accretive effect of acquisitions. Consolidated profit was negatively affected by costs of SEK 12.1 million (2.4) related to acquisition activities.
Operating profit for Sweco Sweden rose by 31 per cent to SEK 138.5 million (106.1). Operating margin was 13.4 per cent (12.2). The improvement in earnings is attributable to a continued robust market in all service segments and healthy growth.
Sweco Norway posted a solid operating profit of SEK 68.4 million (37.6) and an operating margin of 14.5 per cent (10.8). This earnings growth is due to a favourable market, higher volumes and better prices.
Starting from the first quarter, Sweco Finland includes FMC Group and Sweco PM. FMC Group, which is consolidated in the Sweco Group as of 1 February 2012, contributed net sales of SEK 131.8 million, an operating profit of SEK 13.0 million and an operating margin of 9.8 per cent.
The negative earnings trend in Russia is due mainly to a weaker market in the infrastructure segment.
Sweco Industry has shown a significant improvement in earnings compared to the previous year, mainly owing to continued strong demand in Finland. The Group's overall operating margin was 12.1 per cent (9.6). The billing ratio, including all administrative personnel, was 73.9 per cent (72.9).
Operating profit before amortisation of acquisitionrelated intangible assets (EBITA) was SEK 241.6 million (139.8) and the EBITA margin was 12.7 per cent (9.8).
Profit before tax was SEK 225.1 million (134.5). The Group's net financial items amounted to SEK-6.2 million $(-2.1)$ and included foreign exchange effects of SEK-0.9 million (-1.7).
Profit after tax was SEK 164.5 million (97.1).
Return on equity was 27.5 per cent (19.7) and return on capital employed was 30.6 per cent (26.2).
No significant transactions with related parties took place during the period.
Earnings per share were SEK 1.79 (1.07) before dilution and SEK 1.79 (1.07) after dilution.
Investments in property, plant and equipment totalled SEK 26.0 million (21.7) and referred mainly to computers and other IT investments. Depreciation of property, plant and equipment amounted to SEK 21.2 million (18.0) and amortisation of intangible assets to SEK 13.1 million (5.0).
Consideration paid for the acquisition of companies amounted to SEK 777.5 million (34.4) and the effect on consolidated cash and cash equivalents was SEK $-485.4$ million $(-20.8)$ .
The Group's cash flow from operating activities was strong at SEK 79.6 million $(-0.7)$ .
Cash and cash equivalents amounted to SEK 432.0 million (348.9). Disposable cash and cash equivalents including unutilised bank overdraft facilities at the end of the period totalled SEK 1,120.5 million (898.9). Interest-bearing debt is reported at SEK 749.9 million (156.9). The net interest-bearing liability was SEK 317.9 million (net receivable of SEK 192.0 million).
The net debt/equity ratio was 18.6 per cent (-12.7). The equity/assets ratio was 35.6 per cent (48.4).
After the end of the reporting period, dividends were paid to Sweco AB's shareholders in a total amount of SEK 274.0 million (272.8).
The number of employees at 31 March 2012 was 7,563 (5,565). The average number of employees in the Group during the period was 6,986 (5,317).
The Parent Company recorded net sales of SEK 42.1 million (27.0), all of which refers to intra-group services. Profit after net financial items was SEK-17.4 million (-13.1). Investments in equipment amounted to SEK 2.4 million (0.4) and cash and cash equivalents at the end of the period totalled SEK 104.8 million $(211.0).$
Sweco is listed on NASDAQ OMX Stockholm. The bid price for the Sweco B share at 31 March 2012 was SEK 71.75, an increase of 25 per cent during the year. The OMX Stockholm General Index rose by 10 per cent over the same period.
The total number of shares at the end of the period was 91,516,847, of which 9,385,676 are of class A and 82,131,171 are of class B. After deduction of treasury shares, the number of shares outstanding at 31 March 2012 was 91,342,847, of which 9,385,676 are of class A and 81,957,171 are of class B.
During the period, Sweco repurchased 171,980 class B shares for SEK 12.0 million, which is equal to SEK 69.74 SEK per share. Sweco thus holds a total of 174,000 class B treasury shares. The treasury shares correspond to 0.2 per cent of the total number of shares and 0.1 per cent of the votes.
The engineers, architects and environmental experts at Sweco are working together to contribute to the development of a sustainable society. With close to 7,600 employees in 13 countries, the Sweco Group is one of the largest players in Europe. Every year, Sweco carries out projects in some 80 countries worldwide. Operations are conducted in six business areas: Sweco Sweden, Sweco Norway, Sweco Finland, Sweco Central & Eastern Europe, Sweco Russia and Sweco Industry.
Sweco is well poised to continue arowing with sustained profitability. Sweco has market-leading positions in Sweden, Norway and Finland and solid niche positions in several countries in Central and Eastern Europe. Sweco's home markets have generally higher GDP growth and healthier state finances than the European average.
Sweco has a strong brand among its clients and is regarded as an attractive employer in the labour market. With a profitability and financial strength at the top of the industry. Sweco has capacity to grow faster than the market average, both organically and through acquisitions.
Sweco continued to grow in the first quarter. Net sales rose by 35 per cent in Sweco Norway and by 19 per cent in Sweco Sweden. The Finnish FMC Group with more than 1,100 employees was consolidated at the
beginning of the year and Sweco grew overall by 34 per cent.
Demand for Sweco's services remained high during the period. Sweden and Norway showed positive market development in all service segments. The situation improved further for Sweco's industrial consultants in Finland and general demand in Central and Eastern Europe was relatively stable.
At present there are no obvious signs of a market downturn for Sweco, despite financial unrest in the Eurozone and general economic slowing. However. there are remaining concerns about the future direction of the economy and market development is difficult to predict.
There are powerful drivers that are boosting demand for consulting engineering services. These are related to urbanisation and rising living standards, which are among other things contributing to a need for infrastructure, industrial production, energy production and construction. At the same time, there are increasingly stringent requirements for sustainable development of society and adaptation to climate change. This is stimulating demand for services in areas like energy efficiency, environmental impact assessments, renewable energy solutions, effective traffic planning, water supply, wastewater treatment and soil/site remediation.
| Net sales and profit | Jan-Mar 2012 |
Jan-Mar 2011 |
|---|---|---|
| Net sales, SEK M | 1.030.9 | 869.7 |
| Operating profit, SEK M | 138.5 | 106.1 |
| Operating margin, % | 13.4 | 12.2 |
| No. of employees at end of period | 3.259 | 2,938 |
Sweco Sweden is the country's leading provider of consulting engineering services and the Group's largest business area, with around 3,300 employees in some 50 locations. Services are offered in the areas of Architecture, Structural Engineering, Building Service Systems. Infrastructure. Water & Environment. Project Management, Energy Systems, Geographic IT and Institutional Services. Sweco Sweden has extensive project exports to countries in Eastern Europe, Africa. Asia, the Middle East and Latin America.
The Swedish market is showing positive development and healthy demand in all of Sweco's service segments. Ongoing growth is anticipated in the infrastructure and energy areas, particularly for services related to hydroelectric power. The market for water and environmental services is good both in Sweden and internationally, above with regard to water supply. The market for building-related services for industrial, private construction and real estate
companies also remains strong. Interest in Sweco's service offering in sustainable urban development is showing steady growth both in Sweden and globally.
In the first quarter Sweco signed an agreement for planning and design of the New Karolinska Hospital (NKS) in Stockholm. The assignment will be carried out in a consortium with ÅF and Sweco's share of the contract is worth close to SEK 300 million. Additional assignments in the healthcare sector include planning of a new surgical centre at Karlstad Central Hospital and expansion of Skövde Hospital. In Umeå Sweco will design a new cultural centre and in Östergötland Sweco will help the Diocese of Linköping to reduce energy consumption in its church properties. In Latvia Sweco's Swedish consultants won a major contract in connection with modernisation of the country's largest hydropower plant on the Daugava River.
| Net sales and profit | Jan-Mar 2012 |
Jan-Mar 2011 |
|---|---|---|
| Net sales, SEK M | 472.5 | 349.4 |
| Operating profit, SEK M | 68.4 | 37.6 |
| Operating margin, % | 14.5 | 10.8 |
| No. of employees at end of period | 1.092 | 960 |
Sweco is one of Norway's largest engineering consultancies, with around 1,100 employees. The Norwegian business area, which also has some project exports, is organised in six divisions: Energy, Water & Environment, Building & Construction, Infrastructure, Building Service Systems and Vest.
Sweco's Norwegian operations experienced a continued favourable market in the first quarter. The construction sector is noting strong demand for energy-efficient and eco-friendly residential and commercial properties. In the infrastructure area, rising investments in the road and railway networks are creating a good market for Sweco. A joint Norwegian/Swedish electricity certificate system is leading to a better market for services related to renewable energy, primarily hydro and wind power. An urgent need for modernisation of the country's water and wastewater systems is also generating good longterm demand for Sweco's services.
In the first quarter Sweco was given responsibility for planning and design of a new child and youth clinic in Bergen. The new clinic will have a built area of approximately 65,000 square meters. Sweco will also plan a new residential development in Bergen that consists of eight buildings with a total of 154 apartments, commercial space and a car park. Sweco has also been contracted for upgrading of a 15 km section of the E6 motorway north of Lillehammer. The project also includes a 4 km tunnel.
| Net sales and profit | Jan-Mar 2012 |
Jan-Mar 2011 |
|---|---|---|
| Net sales, SEK M | 156.0 | 20.1 |
| Operating profit, SEK M | 15.8 | 1.9 |
| Operating margin, % | 10.1 | 9.5 |
| No. of employees at end of period | 1.255 | 65 |
As of 1 February 2012, FMC Group with more than 1,100 employees is part of the Sweco Finland business area. FMC Group offers services mainly in the areas of structural engineering, building service systems, industrial engineering, energy and environment. FMC Group is among other things the Finnish market-leader in structural engineering. The business area also includes Sweco PM with 76 employees, which primarily offers project management services to clients in the infrastructure, construction and industrial sectors.
Sweco's building-related services enjoyed healthy demand during the period. The market for commercial and office properties is stable. For public facilities such as schools and hospitals, rising volumes are awaited during the year. Development is also positive in the renovation, rebuilding and expansion sector. Despite a shrinking market for residential construction, demand for Sweco's services in the residential sector remains relatively strong, above all with regard to structural engineering. Overall, the Finnish construction market is expected to decline marginally.
New contracts in the first quarter include engineering design for a new commercial centre in the Tikkurila section of Vantaa that will contain offices, commercial space and a hotel. The project covers a total area of around 54,000 square meters. In the Töölönlahti area of Helsinki, FMC Group is taking part in construction of a new office and residential complex. Another notable assignment involves project management for the expansion of a passenger terminal at Helsinki-Vantaa airport.
| Net sales and profit | Jan-Mar 2012 |
Jan-Mar 2011 |
|---|---|---|
| Net sales, SEK M | 66.4 | 54.9 |
| Operating profit, SEK M | 2.6 | $-3.2$ |
| Operating margin, % | 3.9 | $-5.9$ |
| No. of employees at end of period | 886 | 874 |
Sweco Central & Eastern Europe has close to 900 employees and is active in Estonia, Lithuania, Poland, the Czech Republic. Slovakia and Bulgaria.
The mark unchange Bulgaria a energy, w the Baltic related as investors project m infrastruc while dem environm pressure particular ket situation in ed. The Baltic are noting incr water and envi c region is also ssignments an . Estonia is sh anagement se cture and arch mand for servi ental area is f is being felt th rly in connectio n the business states, the Cz reased deman ironmental ser o good with re nd projects wit howing strong ervices. In Po itecture marke ces in the wat favourable. Int hroughout the on with public area is largel zech Republic nd for Sweco's rvices. Deman gard to indust th private demand for land, the ets remain we ter and tense price business area procurements y c and snd in tryak a, s.
The ongo and Easte business environm oing adaptation ern Europe is area's activiti ent, energy an n to EU stand continuing to es in the wate nd infrastructu ards in Centra benefit all of t er and ure areas. al the
In Estonia are collab productio Lithuania terminal i awarded region. Sw among ot along an Bulgaria S reservoir second la a Sweco's Est borating in the on facility for V Sweco is taki n Klaipeda an several infras weco's Czech ther things to d 11 km section Sweco will pla and a water tr argest city of P tonian and Fin e construction Vaasan in the c ing part in bui nd in Poland S tructure contra h consultants h design a flood n of river in city an and design reatment plan Plovdivtsi. nnish consulta of a new city of Saue. In lding an LNG Sweco has bee acts in the Kra have been cho d control syste y of Terezin. I a new water t in the countr ants n en akow osen em n ry's
| Net sales a and profit |
Ja n-Mar 2012 |
Jan-M Mar 20 011 |
|---|---|---|
| Net sales, S SEK M |
32.5 | 5 5.1 |
| Operating p profit, SEK M |
-2.8 | -0 0.3 |
| Operating m margin, % |
-8.5 | -5 5.1 |
| No. of emp loyees at end of period |
347 | 91 |
Sweco Ru active in t Environm coordinat areas to R ussia has arou the areas of In ment. Sweco R tion of project Russia. und 350 empl nfrastructure a Russia is also r exports from t oyees and is and Water & responsible fo the other busi or ness
In the wa infrastruc projects h governme Sweco N state-fina ke of the Russ cture market h have been pos ent is in place IPI, which is a anced projects sian president as weakened stponed until t . This has prim active in the ea . tial election, th and several m the new marily affected arly stages of he major d
The longfinances a increased Russian e industrial sector. M -term fundame are improving d infrastructure economy is als investments, ajor events su entals remain steadily, whic e investments so visible in th above all in th uch as the win strong. Public ch is leading to . The healthie he form of risin he raw materia nter Olympics c o er ng als in
2014 favo 4 and the FIFA ourable long-te A World Cup i erm market co n 2018 are cre onditions for Sw eating weco.
In sp none the q regio desi Skol plan Pete nucl pite of a weak etheless won quarter. The m onal road sect gn services in lkovo innovati ning services ersburg and w ear power pla order intake, several mid-si most notable in tion north of P n connection w on centre outs for the Port of astewater trea nt in Kaliningr Sweco Russia ized contracts nclude plannin Pskov, enginee with planning o side Moscow, of Ust-Luga ou atment at the rad. as during ng of a ering of the new general tside St. Neman
| Net s sales and profit |
Jan-Mar 2012 |
Jan-Mar 2011 |
|---|---|---|
| Net s sales, SEK M |
192.8 | 144.5 |
| Oper rating profit, SEK K M |
21.2 | 3.0 |
| Oper rating margin, % |
11.0 | 2.1 |
| No. o of employees at e end of period |
709 | 620 |
Swe indu capa and optim emp Norw large Indu Euro with chem indu eco Industry is strial consultin abilities includ project manag misation and p ployees in Finl way, Sweco In est industrial e ustry also has ope and South a focus on th mical, pulp an stries, as well the Group's r ng services. T e consulting, p gement servic plant investme and, 240 in Sw ndustry is one engineering co operations in h America. The e energy, che d paper, minin as offshore p resource for q The business a planning, eng ces for produc ent. With some weden and 20 of the Nordic onsultancies. S Russia, Easte e business are emical and pet ng and minera projects. ualified area's ineering ct e 450 0 in region's Sweco ern ea works troal
The impr quar risin Mark rema pape Ame dem Finla market situati rove and no si rter. The share g and there is ket developme ained favoura er mills have b erica and Russ mand for Swec and and Swed ion in Finland gns of slowing e of more long a growing ne ent in Sweden ble. Investmen been announc sia, and are ex o's industrial c den. has continued g were seen in g-term assignm eed for new re n and Norway nts in new pul ced in Asia, So xpected stimu consultants in d to n the first ments is cruitment. has also lp and outh ulate both
Swe mini pape exist rema of in is cr cons petro first eden is noting ng and energy er industry is a ting facilities. ained active a quiries has be reating a good sulting engine ochemical ind quarter. accelerating i y industries. T also continuing The Finnish m nd a tangible een seen in th market for Sw ering services ustry was rela nvestments in The Swedish p g to invest, ma mining industry increase in th he energy sect weco. Deman s in the chemic atively stable d n the pulp and ainly in y has he number tor, which d for cal and during the
Swe serv eco has been c vices in connec contracted by ction with capa General Elec acity expansio tric for on at its
production plant for x-ray and MRI contrast agents in Lindesnes in southern Norway. Other new assignments include a number of projects for clients like Andritz, Metso, Neste Jacobs and Outotec.
The following acquisitions have increased the number of employees in the Sweco Group by around 1,200 during 2012. Around 80 employees have been added through organic growth.
In Norway Sweco acquired the project and construction management company Pyramide AS with 13 employees.
Sweco has acquired the Finnish engineering consultancy FMC Group (whose parent company is Finnmap Consulting Oy) with annual sales of approximately EUR 80 million and 1,149 employees. The transaction will create the second largest engineering consultancy in the Finnish market.
After the end of the period, Sweco acquired the Finnish architectural firm of Brunow & Maunula with 18 employees. Brunow & Maunula is one of Finland's leading residential architectural firms.
After the end of the period, a shareholder submitted a request for conversion of 4,012 class A shares to class B shares with the support of the conversion clause in the Articles of Association. The total number of votes following conversion is 17,595,182.3, of which class A shares account for 9,381,664 votes and class B shares for 8,213,518.3 votes. The total number of shares thereafter is 91,516,847, of which 9,381,664 are of class A and 82,135,183 are of class B.
In accordance with the Board's proposal, Sweco's 2012 AGM resolved to implement a long-term share savings scheme consisting of not more than 250,000 Sweco class B shares (of which, not more than 198,000 shares for delivery to the participants and not more than 52,000 shares to cover the cost of social security contributions), for up to 80 senior executives and other key staff in the Sweco Group. For further information about the share savings scheme, see the Board's complete proposal for resolution on the longterm share savings scheme, which can be found on Sweco's website.
Sweco complies with the International Financial Accounting Standards (IFRS) and interpretations of these (IFRIC) that have been endorsed by the European Commission for application in the EU. This interim report is presented in accordance with IAS 34, Interim Financial Reporting, the Swedish Annual
Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The accounting and valuation standards applied by the Group are the same as those described in Note 1 of the annual report for 2011.
The significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks tied to the general economic trend and investment spending in different markets, the ability to attract and retain competent personnel and the effects of political decisions. The Group is also exposed to different types of financial risk, such as foreign exchange risk, interest rate risk and credit risk. No significant risks are assessed to have arisen aside from those presented on page 82 of Sweco's annual report for 2011, "Risk management".
Interim report January-June 17 July 2012 Interim report January-September 5 November 2012 Year-end report 2012 14 February 2013
PLEASE NOTE! The date for the interim report for January-September has been changed.
The market for consulting engineering and architectural services is generally good, although there is continued uncertainty about future development. Sweco's ambition is to achieve sustained profitable growth by strengthening its market positions in the Nordic region and in Central and Eastern Europe. Sweco's healthy finances. leading market positions in several important growth areas and wide offering of services provide a solid platform for stable long-term development.
Stockholm, 8 May 2012
Mats Wäppling President & CEO
This report has not been examined by the company's auditors
Mats Wäppling, President & CEO Telephone +46 8 695 66 07 / +46 70 645 03 21 [email protected]
Jonas Dahlberg, CFO Telephone +46 8 695 63 32 / +46 70 347 23 83 [email protected]
Bo Jansson, Senior Vice President Telephone +46 8 695 66 06 / +46 73 412 66 07 [email protected]
SWECO AB (publ) Corp. identity no. 556542-9841 Gjörwellsgatan 22, Box 34044, SE-100 26 Stockholm, Sweden Telephone +46 8 695 60 00, Fax +46 8 695 66 10 E-mail: [email protected] www.swecogroup.com
Sweco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information
was submitted for publication on 8 May 2012, 11:50 CET.
| Income statement, SEK M | Jan-Mar 2012 | Jan-Mar 2011 | Apr 2011-Mar 2012 | Full year 2011 |
|---|---|---|---|---|
| Net sales | 1,909.6 | 1,420.7 | 6,476.5 | 5,987.6 |
| Other external expenses | $-417.6$ | $-325.8$ | $-1,596.9$ | $-1,505.1$ |
| Personnel costs | $-1,226.4$ | $-935.3$ | $-4, 132.7$ | $-3,841.6$ |
| Amortisation/depreciation and impairment | $-34.3$ | $-23.0$ | $-120.9$ | $-109.6$ |
| Operating profit | 231.3 | 136.6 | 626.0 | 531.3 |
| Net financial items | $-6.2$ | $-2.1$ | $-8.6$ | $-4.5$ |
| Profit before tax | 225.1 | 134.5 | 617.4 | 526.8 |
| Income tax expense | $-60.6$ | $-37.4$ | $-175.2$ | $-152.0$ |
| PROFIT FOR THE PERIOD | 164.5 | 97.1 | 442.2 | 374.8 |
| Profit for the period attributable to: | ||||
| Owners of the Parent Company | 163.7 | 97.2 | 440.0 | 373.5 |
| Non-controlling interests | 0.8 | $-0.1$ | 2.2 | 1.3 |
| Earnings per share attributable to owners of the Parent Company, SEK |
||||
| - Basic | 1.79 | 1.07 | 4.84 | 4.11 |
| - Diluted | 1.79 | 1.07 | 4.84 | 4.11 |
| Average number of shares | 91,430,321 | 90,946,774 | 90,979,133 | 90,858,246 |
| Average number of shares after dilution | 91,430,321 | 90,946,774 | 90,981,989 | 90,861,102 |
| Dividend per share, SEK | $\overline{\phantom{a}}$ | 3.00 |
| Statement of comprehensive income, | ||||
|---|---|---|---|---|
| SEKM | Jan-Mar 2012 | Jan-Mar 2011 | Apr 2011-Mar 2012 | Full year 2011 |
| Profit for the period | 164.5 | 97.1 | 442.2 | 374.8 |
| Translation differences | 3.1 | $-8.8$ | $-1.7$ | $-13.6$ |
| COMPREHENSIVE INCOME FOR THE PERIOD |
167.6 | 88.3 | 440.5 | 361.2 |
| Comprehensive income attributable to: | ||||
| Owners of the Parent Company | 166.9 | 88.5 | 438.4 | 360.0 |
| Non-controlling interests | 0.7 | $-0.2$ | 2.1 | 1.2 |
| Cash flow statement, SEK M | Jan-Mar 2012 | Jan-Mar 2011 | Apr 2011-Mar 2012 | Full year 2011 |
|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital and paid tax |
251.9 | 158.6 | 751.0 | 657.7 |
| Paid tax | $-92.8$ | $-60.5$ | $-170.9$ | $-138.6$ |
| Changes in working capital | $-79.5$ | $-98.8$ | 13.2 | $-6.1$ |
| Cash flow from operating activities | 79.6 | $-0.7$ | 593.3 | 513.0 |
| Cash flow from investing activities | $-502.7$ | $-42.0$ | $-773.6$ | $-312.9$ |
| Cash flow from financing activities | 635.8 | 18.4 | 261.5 | $-355.9$ |
| CASH FLOW FOR THE PERIOD | 212.7 | $-24.3$ | 81.2 | $-155.8$ |
| Balance sheet, SEK M | 31 Mar 2012 | 31 Mar 2011 | 31 Dec 2011 |
|---|---|---|---|
| Goodwill | 1,466.0 | 757.7 | 907.5 |
| Other intangible assets | 176.4 | 50.6 | 88.3 |
| Property, plant and equipment | 245.5 | 204.3 | 230.8 |
| Financial assets | 51.8 | 66.3 | 34.5 |
| Current assets excl. cash and cash equivalents | 2,438.7 | 1,706.2 | 1,776.1 |
| Cash and cash equivalents incl. short-term investments | 432.0 | 348.9 | 219.6 |
| TOTAL ASSETS | 4,810.4 | 3,134.0 | 3,256.8 |
| Equity attributable to owners of the Parent Company | 1,695.4 | 1,507.1 | 1,493.2 |
| Non-controlling interests | 17.9 | 9.8 | 10.5 |
| Total equity | 1,713.3 | 1,516.9 | 1,503.7 |
| Non-current liabilities | 882.9 | 152.5 | 192.3 |
| Current liabilities | 2,214.2 | 1,464.6 | 1,560.8 |
| TOTAL EQUITY AND LIABILITIES | 4,810.4 | 3,134.0 | 3,256.8 |
| Pledged assets | 257.7 | 16.3 | |
| Contingent liabilities | 230.8 | 193.7 | 207.7 |
| Changes in equity, SEK M | Jan-Mar 2012 | Jan-Mar 2011 | |||||
|---|---|---|---|---|---|---|---|
| Equity attributable to owners of the Parent Company |
Non- controlling interests |
Total equity |
Equity attributable to owners of the Parent Company |
Non- controlling interests |
Total equity |
||
| Equity, opening balance | 1,493.2 | 10.5 | 1,503.7 | 1,419.6 | 10.0 | 1,429.6 | |
| Comprehensive income for the period | 166.9 | 0.7 | 167.6 | 88.5 | $-0.2$ | 88.3 | |
| Non-controlling interests in acquired companies | 6.9 | 6.9 | $\overline{\phantom{0}}$ | $\overline{\phantom{0}}$ | |||
| Acquisition of non-controlling interests | 0.1 | $-0.2$ | $-0.1$ | $\overline{\phantom{0}}$ | $\overline{\phantom{0}}$ | ||
| Issue of treasury shares | 46.9 | $\overline{\phantom{a}}$ | 46.9 | $\overline{\phantom{a}}$ | |||
| Repurchase of treasury shares | $-12.0$ | $\overline{\phantom{a}}$ | $-12.0$ | $-1.0$ | - | $-1.0$ | |
| Share savings scheme | 0.3 | $\overline{\phantom{a}}$ | 0.3 | $\overline{\phantom{0}}$ | $\overline{\phantom{0}}$ | ||
| EQUITY, CLOSING BALANCE | 1,695.4 | 17.9 | 1.713.3 | 1.507.1 | 9.8 | 1.516.9 |
| Key ratios 1) | Jan-Mar 2012 | Jan-Mar 2011 | Full year 2011 |
|---|---|---|---|
| Operating margin, % | 12.1 | 9.6 | 8.9 |
| Profit margin, % | 11.8 | 9.5 | 8.8 |
| Billing ratio, % | 73.9 | 72.9 | 73.9 |
| Return on equity, % | 27.5 | 19.7 | 25.6 |
| Return on capital employed, % | 30.6 | 26.2 | 34.2 |
| Net debt/equity ratio, % | 18.6 | $-12.7$ | $-9.4$ |
| Equity/assets ratio, % | 35.6 | 48.4 | 46.2 |
| Earnings per share, SEK | |||
| - Basic | 1.79 | 1.07 | 4.11 |
| - Diluted | 1.79 | 1.07 | 4.11 |
| Equity per share for profit attributable to owners of the Parent Company, SEK |
|||
| - Basic | 18.56 | 16.57 | 16.46 |
| - Diluted | 18.56 | 16.57 | 16.46 |
| Interest-bearing liabilities, SEK M | 749.9 | 156.9 | 78.7 |
| Of which, liabilities to credit institutions | 749.1 | 153.1 | 71.8 |
| Average number of employees | 6,986 | 5,317 | 5,772 |
| Number of shares on closing date | 91,342,847 | 90,946,774 | 90,719,827 |
| Number of shares after dilution on closing date | 91,342,847 | 90,946,774 | 90,719,827 |
| Number of shares after full dilution on closing date | 91,342,847 | 92,241,274 | 90,719,827 |
| Number of class B treasury shares | 174,000 | 575,573 | 797,020 |
1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2011.
| Business area | Net sales SEK M |
Operating profit SEK M |
Operating margin $\frac{9}{6}$ |
Average no. of employees |
||||
|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Sweco Sweden | 1,030.9 | 869.7 | 138.5 | 106.1 | 13.4 | 12.2 | 3,121 | 2,774 |
| Sweco Norway | 472.5 | 349.4 | 68.4 | 37.6 | 14.5 | 10.8 | 1,138 | 963 |
| Sweco Finland | 156.0 | 20.1 | 15.8 | 1.9 | 10.1 | 9.5 | 786 | 68 |
| Sweco Central & Eastern Europe | 66.4 | 54.9 | 2.6 | $-3.2$ | 3.9 | $-5.9$ | 833 | 817 |
| Sweco Russia | 32.5 | 5.1 | $-2.8$ | $-0.3$ | $-8.5$ | $-5.1$ | 347 | 90 |
| Sweco Industry | 192.8 | 144.5 | 21.2 | 3.0 | 11.0 | 2.1 | 746 | 590 |
| Group-wide, eliminations, etc. | $-41.5$ | $-23.0$ | $-12.4$ | $-8.5$ | $\overline{\phantom{a}}$ | $\overline{\phantom{0}}$ | 15 | 15 |
| Total Group | 1,909.6 | 1,420.7 | 231.3 | 136.6 | 12.1 | 9.6 | 6,986 | 5,317 |
Operating profit for group-wide consists mainly of the Parent Company's loss of SEK -11.0 million (-12.7).
Acquisition of subsidiaries and operations
In the period under review Sweco acquired Pyramide AS, Finnmap Consulting Oy and Karasharju Oy, with a total
of 1,162 employees. During the period, Sweco also acquired minority sh preliminary purchase price allocations, these acquisitions have affected the Group's balance sheet and cash and cash equivalents as shown in the table below. During the period the acquired companies have contributed net sales of SEK 139.0 million and operating profit of SEK 13.9 million. If all of the companies had been acquired at 1 January 2012, the contribution would have been around SEK 204.9 million to net sales and around SEK 20.4 million to operating profit. Transaction costs for the acquisition are recognised in operating profit and amounted for the period to SEK 12.1 million, of which SEK 11.9 million consists of transaction tax. Total transaction costs amount to SEK 20.5 million.
| Acquisitions, SEK M | FMC Group | Other acquisitions |
|---|---|---|
| Intangible assets | 638.1 | 19.2 |
| Property, plant and equipment | 7.0 | 0.1 |
| Financial assets | 20.1 | |
| Current assets | 562.5 | 16.0 |
| Non-current liabilities | $-7.9$ | |
| Deferred tax | $-42.5$ | $-1.8$ |
| Other current liabilities | $-416.6$ | $-9.8$ |
| Non-controlling interests | $-6.9$ | 0.1 |
| Equity attributable to owners of the Parent Company | $-0.1$ | |
| Total consideration | 753.8 | 23.7 |
| Unsettled purchase price commitments | $-39.8$ | $-3.4$ |
| Consideration paid in shares | $-46.9$ | |
| Cash and cash equivalents in acquired companies | $-193.9$ | $-8.1$ |
| EFFECT ON THE GROUP'S CASH AND CASH EQUIVALENTS |
473.2 | 12.2 2 |
| Parent Company income statement, SEK M | Jan-Mar 2012 | Jan-Mar 2011 | Full year 2011 |
|---|---|---|---|
| Net sales | 42.1 | 27.0 | 80.3 |
| Other external expenses | $-40.4$ | $-30.2$ | $-92.2$ |
| Personnel costs | $-10.1$ | $-8.7$ | $-37.3$ |
| Amortisation/depreciation and impairment | $-2.6$ | $-0.8$ | $-3.9$ |
| Operating loss | $-11.0$ | $-12.7$ | $-53.1$ |
| Net financial items | $-6.4$ | $-0.4$ | 464.3 |
| Profit after financial items | $-17.4$ | $-13.1$ | 411.2 |
| Appropriations | $\overline{\phantom{a}}$ | $-1.1$ | |
| Profit before tax | $-17.4$ | $-13.1$ | $-410.1$ |
| Income tax expense | $\overline{\phantom{a}}$ | $-93.7$ | |
| PROFIT AFTER TAX | $-17.4$ | $-13.1$ | 316.4 |
| Parent Company balance sheet, SEK M | 31 Mar 2012 | 31 Dec 2011 |
|---|---|---|
| Intangible assets | 9.0 | 9.7 |
| Property, plant and equipment | 12.5 | 12.0 |
| Financial assets | 1,077.8 | 371.2 |
| Current assets | 944.3 | 1,624.8 |
| TOTAL ASSETS | 2,043.6 | 2,017.7 |
| Equity | 1,301.7 | 1,283.7 |
| Untaxed reserves | 1.2 | 1.2 |
| Non-current liabilities | 661.6 | $\overline{\phantom{a}}$ |
| Current liabilities | 79.1 | 732.8 |
| TOTAL EQUITY AND LIABILITIES | 2,043.6 | 2.017.7 |
| Five-year overview 1) | Apr 2011- Mar 2012 |
2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|
| Net sales, SEK M | 6,476.5 | 5,987.6 | 5,272.4 | 5,338.7 | 5,522.8 |
| Operating profit, SEK M | 626.0 | 531.3 | 432.7 | 443.6 | 596.3 |
| Profit before tax, SEK M | 617.4 | 526.8 | 423.7 | 443.6 | 588.2 |
| Operating margin, % | 9.7 | 8.9 | 8.2 | 8.3 | 10.8 |
| Billing ratio, % | 74.1 | 73.9 | 73.4 | 73.6 | 75.6 |
| Return on equity, % | 27.5 | 25.6 | 19.9 | 19.6 | 34.6 |
| Return on capital employed, % | 30.6 | 34.2 | 26.5 | 27.5 | 44.4 |
| Net debt/equity ratio, % | 18.6 | $-9.4$ | $-16.8$ | $-26.2$ | $-11.3$ |
| Equity/assets ratio, % | 35.6 | 46.2 | 47.8 | 50.6 | 47.0 |
| Earnings per share, SEK | |||||
| - Basic | 4.84 | 4.11 | 3.31 | 3.31 | 4.68 |
| - Diluted | 4.84 | 4.11 | 3.28 | 3.28 | 4.65 |
| Dividend per share, SEK | $\overline{\phantom{a}}$ | 3.00 | 3.00 | 2.00 | 2.00 |
| Redemption amount per share, SEK | - | ٠ | 2.00 | $\overline{\phantom{a}}$ | |
| Average number of employees | 6,986 | 5,772 | 4,986 | 5,082 | 5,453 |
1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2011.
| Business a area |
2012 Q1 |
2011 Q4 |
20 011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
20 010 Q3 |
2010 Q2 |
2010 Q1 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales, SEK M |
|||||||||
| Sweco Swe eden |
1,030.9 | 1,053.2 1 |
750 0.5 |
923.3 | 869.7 | 902.1 | 62 26.1 |
803.0 | 772.7 |
| Sweco Nor rway |
472.5 | 405.7 | 307 7.2 |
339.5 | 349.4 | 324.3 | 27 76.1 |
345.6 | 350.6 |
| Sweco Finl and |
156.0 | 27.0 | 2 1.4 |
23.9 | 20.1 | 24.6 | 1 18.4 |
19.3 | 19.6 |
| Sweco Cen ntral & Eastern Eu urope |
66.4 | 86.5 | 54 4.3 |
60.8 | 54.9 | 85.1 | 6 64.5 |
64.2 | 64.4 |
| Sweco Rus ssia |
32.5 | 44.4 | 33 3.1 |
27.1 | 5.1 | 7.1 | 7.7 | 7.3 | 6.4 |
| Sweco Indu ustry |
192.8 | 210.0 | 137 7.6 |
157.3 | 144.5 | 143.0 | 11 14.1 |
129.4 | 150.1 |
| Group-wide e, eliminations s, etc. |
-41.5 | -40.7 | -30 0.0 |
-25.2 | -23.0 | -7.2 | -1 18.0 |
-3.3 | -24.8 |
| Total Grou up |
1,909.6 | 1,786.1 1 |
1,274 4.1 |
1,506.7 | 1,420.7 | 1,479.0 | 1,08 88.9 |
1,365.5 | 1,339.0 |
| Operating profit, SEK M |
|||||||||
| Sweco Swe eden |
138.5 | 139.2 | 53 3.4 |
113.6 | 106.1 | 106.2 | 4 44.1 |
98.1 | 85.8 |
| Sweco Nor rway |
68.4 | 45.2 | 26 6.7 |
16.4 | 37.6 | 30.0 | 2 25.4 |
36.2 | 39.2 |
| Sweco Finl and |
15.8 | 0.3 | 2 2.2 |
2.9 | 1.9 | 1.3 | 2.6 | 2.1 | 1.2 |
| Sweco Cen ntral & Eastern Eu urope |
2.6 | 5.3 | - 1.1 |
0.6 | -3.2 | 3.5 | - -0.6 |
3.4 | 1.0 |
| Sweco Rus ssia |
-2.8 | 5.9 | 3 3.0 |
1.7 | -0.3 | 1.0 | 1.4 | 0.5 | 0.5 |
| Sweco Indu ustry |
21.2 | 14.0 | 4 4.1 |
3.8 | 3.0 | 2.5 | - -3.3 |
0.7 | 1.6 |
| Group-wide e, eliminations s, etc. |
-12.4 | -18.3 | -13 3.2 |
-11.0 | -8.5 | -16.0 | 0.0 | -28.8 | -6.9 |
| Total Grou up |
231.3 | 191.6 | 75 5.1 |
128.0 | 136.6 | 128.5 | 6 69.6 |
112.2 | 122.4 |
| Operating margin, % |
|||||||||
| Sweco Swe eden |
13.4 | 13.2 | 7 7.1 |
12.3 | 12.2 | 11.8 | 7.0 | 12.2 | 11.1 |
| Sweco Nor rway |
14.5 | 11.1 | 8 8.7 |
4.8 | 10.8 | 9.3 | 9.2 | 10.5 | 11.2 |
| Sweco Finl and |
10.1 | 1.0 | 10 0.5 |
12.0 | 9.5 | 5.3 | 1 14.1 |
10.7 | 6.3 |
| Sweco Cen ntral & Eastern Eu urope |
3.9 | 6.1 | -2 2.1 |
1.1 | -5.9 | 4.1 | - -0.9 |
5.3 | 1.6 |
| Sweco Rus ssia |
-8.5 | 13.5 | 8 8.9 |
6.2 | -5.1 | 14.1 | 1 18.2 |
6.6 | 7.8 |
| Sweco Indu ustry |
11.0 | 6.7 | 3 3.0 |
2.4 | 2.1 | 1.7 | - -2.9 |
0.5 | 1.1 |
| Total Grou up |
12.1 | 10.7 | 5 5.9 |
8.5 | 9.6 | 8.7 | 6.4 | 8.2 | 9.1 |
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