SOLNA, Sweden, Nov. 4, 2002 (PRIMEZONE) -- NCC (Stockholm:NCCa):
- Profit after financial items, excluding items affecting comparability,
amounted to SEK 568 M (401).
- Following substantial project write-downs, Construction Norway's
operating loss was larger than expected at SEK 372 M (loss: 30).
- Net debt was reduced to SEK 6.9 billion, compared with SEK 10.3 billion
at the end of 2001 and SEK 8.1 billion on June 30, 2002.
- The full-year forecast of a profit of at least SEK 1 billion after net
financial items, excluding the capital gain on the sale of NVS, stands
firm.
July-Sept Jan-Sept
2002 2001 2002 2001
(pro forma) (1) (pro forma)
(1)
Orders received, SEK M 11,748 11,623 31,670 36,866
Net sales, SEK M 11,113 12,695 32,119 33,558
Operating profit/loss, 258 530 1,237 896
SEK M 258 516 936 851
excl. items affecting
comparability(2)
Profit/loss after 139 323 869 451
financial items, SEK M 139 308 568 401
excl. items affecting
comparability(2)
Earnings per share, SEK 0.65 1.70 5.50 2.50
excl. items affecting 0.65 1.50 3.05 2.00
comparability(2)
(1) For information about pro forma figures, see page 2.
(2) Items affecting comparability for 2002 pertain to the capital
gain of SEK 301 M on the sale of NVS. In the 12-month figures and the
figures for 2001, earnings from NVS are regarded as an item affecting
comparability.
Comments by the CEO Alf Goransson: "Our action program, Turnaround, is proceeding as planned for all operations, with the exception of Construction Norway, whose earnings were much weaker than expected and whose operations are in a much worse condition than we previously feared. The Norwegian contracting operations' operating loss of SEK 266 M during the third quarter was due to restructuring measures and, in particular, additional losses on and write-downs of construction and housing projects.
"The earnings trend in the past few years indicates that significant portions of the operations in Norway require fundamental restructuring, new management and stricter follow-up procedures. Two thirds of the company's former senior executives have left the operations since the end of 2001. The new management team is focusing on steadily improving procedures for following up projects, ensuring the realism of final-status forecasts for projects and making sure that the procedures established for applying a more selective tendering policy are adhered to. While the changes under way in Norway represent a difficult and painful process, they are essential if we are to succeed in creating stable profitability and confidence in the future.
"The Group's other operations are developing well and the focus on profitability and cash flow is generating results. This means that the previously issued full-year forecast of a profit of at least SEK 1 billion after net financial items, excluding the capital gain on the sale of NVS, stands firm."
GROUP Pro forma As of January 1, 2002, the NCC Group's organizational structure is divided into ten reporting units. None of the earnings figures presented below include items affecting comparability. All comparative figures at the business area level are presented pro forma. The comments pertain to pro forma results in accordance with the new structure and the changed accounting principles for Property Development. Detailed information about the pro forma accounts was provided in the interim report for January-March 2002.
Matti Haapala leaves NCC
Matti Haapala, a member of NCC's Corporate Management, will leave his position within the NCC Group at the end of 2002. Matti Haapala has been an NCC employee since 1999, when he was appointed head of Finnish operations (NCC Finland Oy). During 2000-2001, Matti Haapala was president of the former NCC Contracting business area, stationed in Solna. Since the beginning of 2002, he has served as senior adviser to CEO Alf Goransson.
Solna, November 4, 2002
Alf Goransson President and Chief Executive Officer
Review report
We have reviewed this interim report in accordance with standards issued by FAR. A review is significantly less in scope than an examination in accordance with generally accepted auditing standards. During our review nothing came to our attention to indicate that the interim report does not comply with the requirements of the Act governing Securities Exchanges and Clearing Operations and the Annual Accounts Act.
Bo Ribers Carl Lindgren Authorized Public Accountant Authorized Public Accountant
This is a translation of the original Swedish interim report.
NCC's year-end report on operations in 2002 will be published on February 11, 2003.
If you have any questions, please contact:
Bjorn Andersson, Chief Financial Officer (Tel: +46-8-585 520 40, or +46-70-627 65 92); or Annica Gerentz, Investor Relations Manager (Tel: +46-8-585 522 04, or +46-70-398 42 09, annika.gerentz@ncc.se)
An information meeting for mass media and capital market representatives will be held on November 4, between 1:30 and 2:30 p.m. at Inforum, Vallgatan 5 (next to NCC's Head Office at Vallgatan (3). The presentation will be made in Swedish and a recorded version will be provided on NCC's corporate website: www.ncc.info.
An English-language telephone conference directed by Chief Financial Officer Bjorn Andersson will be held on November 4, between 4:00 and 4:30 p.m. In order to participate in this conference, call +44 (0) 20 8240 8245, five to ten minutes before the start of the conference and state "NCC." It will also be possible to listen to a recorded version of the telephone conference; call +44 (0) 20 8288 4459, access code 792852.
The telephone conference can also be covered on the Internet via corporate website: www.ncc.info.
For those who intend to read this report electronically, click the following link: http://62.210.134.37/static/ncc/04112002
Presentation material for the information meeting and telephone conference will be downloadable from NCC's www.ncc.info website.
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www.waymaker.net/bitonline/2002/11/04/20021104BIT00470/wkr0001.doc The full report www.waymaker.net/bitonline/2002/11/04/20021104BIT00470/wkr0002.pdf The full report