GOTEBORG, Sweden, Jan. 30, 2002 (PRIMEZONE) -- Semcon:
-- Sales in the consulting business climbed by 19%
-- Group sales increased by 11.9% to SEK 1,127 million (1 007 m)
-- The operating profit (EBIT) reached SEK 5.7 million (30.4 m*)
-- Restructuring costs amounting to of SEK 31 million affected
results
-- EPS of SEK 0.08 (1.99)
-- The Board proposes that no dividend be paid (0.50)
Comments by CEO, Hans Johansson: "Semcon is reporting an increase in sales in the consulting business of 19% for 2001 despite a market slowdown in the second half of the year that established itself more quickly than I have seen in over 20 years in this industry. The IT and telecom sectors suffered the most, and the Stockholm region were hit hardest of all.
"We began taking countermeasures immediately in the autumn. These are proceeding according to plan and will generate savings of at least SEK 50 million over the full year. These measures include reducing our workforce by over 100 employees, of whom over 30 worked in administration. We have closed down offices and departments that had weak profitability.
"But despite tough times, the year also included several successes. Zipper by Semcon, which delivers IT strategies and more efficient operation of IT infrastructure, signed strategically important agreements with Akzo Nobel and Molnlycke Healthcare. Our new specialist operation for the Medical sector, LifeScience, signed important contracts with Novo Nordisk and Pharmadule/Emtunga. Meanwhile Informatic, our operation for technical documentation, has acquired a leading position in northern Europe thanks to its unique business offer. Our partnership with Volvo Car deepened and we signed new partnership agreements with Besam and ABB.
"The economic climate means that customers are rationalizing their activities, which is creating new business opportunities. One good example of this is the letter of intent signed with Ericsson (EPMI) concerning the outsourcing of training and consulting activities connected with the PROPS project management tool. We are fulfilling our strategy for increasing the amount of value-based business and projects where we take complete responsibility. At the end of 2001 and in early 2002 we signed several important agreements that confirm that our skills and services are still in demand.
"The market as a whole will continue to be weak during the first six months of 2002. We will prioritize profits ahead of growth. I expect our restructuring measures to lead to improved profitability for the full year."
*Excluding Alecta refund of SEK 19.6 million.
Business activities
Sales for the full year increased by 11.9% to SEK 1,127 million (1,007 m). Growth was organic and was due to outsourcing agreements. The operating profit before goodwill was SEK 12.2 million (34.9 m), representing a profit margin of 1% (3). The operating profit after goodwill amounted to SEK 5.7 million (30.4), representing a profit margin of 0.5% (3). Semcon's sales in Q4 2001 were SEK 297.6 million (278.4 m) and the operating profit was SEK -22.0 million (-0.6 m). The major downturn in the telecom market affected sales and profits in all business areas. Hardest hit was e-Design. Results were also hit by costs for closing down unprofitable activities and for restructuring. These costs totaled SEK 31.1 million.
Reports and AGM
The 2001 Annual Report will be published in early March and will be sent to shareholders who have indicated that they wish to receive financial information. The Annual Report will also be available from Semcon's head office at Vasagatan 45, Goteborg, Sweden. It can be ordered via tel. +46 31 721 00 00, fax. +46 31 721 03 33, or via email: lotta.magnusson@semcon.se
The AGM will be held at 6 p.m. on March 18, 2002 at Semcon's head office at Vasagatan 45, Goteborg, Sweden.
The Q1 report will be published on April 24, 2002
Financial information in 2002 Date
2001 Annual Report early March
AGM March 18 New date
Q1 report April 24
Q2 report August 21
Q3 report October 23
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www.waymaker.net/bitonline/2002/01/30/20020130BIT00120/bit0001.doc
www.waymaker.net/bitonline/2002/01/30/20020130BIT00120/bit0002.pdf