GOTEBORG, Sweden, Aug. 16, 2005 (PRIMEZONE) -- Semcon:
- Sales climbed by 20.3% to reach SEK 773.5 m (642.8).
- Profit after tax soared by 192% to SEK 37.4 m (12.8).
- Earnings per share stood at SEK 2.15 (0.74).
- Operating profit after depreciation (EBIT) was SEK 49.2 m (21.7), to produce a margin of 6.4% (3.4).
COMMENTS BY CEO Hans Johansson
Thanks to very impressive work from all our staff we are reporting improvements in results which mean that after just six months of 2005 we have already matched the results we recorded for the full year in 2004. Increased demand for our services has boosted sales by more than SEK 130.7 m. This represents growth of 20% and it has enabled us to recruit a net 165 new staff. We expect the positive trends of the past six months to persist, so that growth will continue and margins will improve compared with 2004.
One of our goals is to increase market share. To continue our growth and balance our strong position in the vehicle sector, we have focused determinedly on the telecom sector, and this focus has been well rewarded. Semcon has been a supplier to the Ericsson Group for nearly 23 years. During the past quarter this relationship was strengthened even further through the signing of a Preferred Supplier agreement with Ericsson AB. This agreement will give us more opportunities to develop our business and take on bigger assignments.
Our international business continues to grow. Our customers expect to find us close to their development centres, and the positive progress of existing ventures has prompted us to take new steps forward. During the period we opened a design and development centre in Budapest, Hungary. This move is part of our growth strategy and means that we can meet our customers' demands for specialist solutions with attractive prices. We have now signed our first customer contract within the vehicle sector.
As a further step forward in our international growth within the telecom sector we have become the design and development partner for Ericsson Racing Team. We have been asked to participate in the development of a new VO70 yacht for the world's toughest sailing competition, Volvo Ocean Race. These yachts are faster and bigger than previously, which sets exceptionally high demands on innovative technical solutions, design, engineering and IT solutions. We are both proud and pleased that Ericsson AB wants to use our specialist competence to create a winning yacht.
REPORTING
The Q3 Report will be published on 20 October.
Goteborg, Sweden, 16 August 2005 Hans Johansson
Semcon AB (publ)
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