Studsvik Presenting Annual Accounts Data EarlierThe Board of Directors of Studsvik AB has decided to bring forward the publication of the main features of the next year-end press release for 2006. The measure is due to an unplanned production stoppage in the Group's waste treatment facility in Erwin which has had a negative impact on earnings. There was an unplanned production stoppage in the Group's waste treatment facility in Erwin in October with financial consequences in November and December. The stoppage has affected operating profit negatively by about SEK 12 million. In response to this the Board of Directors of Studsvik AB has decided to publish a summary of the year-end financial statements for 2006, despite the fact that they have not been adopted or audited. The preliminary 2006 operating profit for the Group is about SEK 71 million. The Board of Directors made the following statement concerning the outlook for 2006 in the third quarter interim report: "The assessment of the outlook for 2006 made in the interim report for the second quarter 2006 is unchanged. Accordingly, the overall assessment is that the operating profit for the Group for 2006 will be somewhat lower than for 2005. Financial expenses are expected to increase and, therefore, profit before tax is expected to be lower than the previous year. (Comparative figures for 2005 refer to the Group including discontinued operations.) SEK thousandsJan-Dec 2006Jan-Dec 2005 Continuing operationsIncluding discontinued operationsNet sales for the Group 1,219.0 1,088.3 1,116.5Operating profit 71.0 78.8 92.4Profit before tax 56.0 76.2 89.8 The stoppage at the end of October was caused by a filter breakdown, which enforced a two-week closedown of the facility. To start with, the damage was assessed as limited. However, an unforeseen consequence of the stoppage was a negative effect on production in November and December. This meant that margins fell drastically during that period. The technical faults at the Erwin facility have been dealt with. All costs of the stoppage are charged to 2006. "Unfortunately technical faults occur and we can never fully protect ourselves from them. A rapid review of the facility's control and reporting is now in progress and we are implementing a number of changes to prevent similar problems in the future." says Studsvik's CEO Magnus Groth in a comment on the stoppage. "The rest of Studsvik's operations, including RACE, which was acquired by Studsvik in May, are developing in accordance with our expectations," continues Magnus Groth. A full year-end press release will be published as announced on 15 February. For further information please contact: Magnus Groth, President and Chief Executive Officer, cell phone+46 709 67 70 86Jerry Ericsson, Chief Financial Officer and Vice President, telephone+46 155 22 10 32, cell phone +46 709 67 70 32. Facts about StudsvikStudsvik is a leading service supplier to the international nuclear industry. The company has almost a half century's experience of nuclear technology and radiological services. Studsvik addresses a market in strong growth with specialized services in four Strategic Business Areas: Operating Efficiency and Safety, Service and Maintenance, Waste Treatment and Decommissioning. Studsvik has 1,400 employees in 7 countries and the company's shares are listed on the Nordic Stock Exchange, Stockholm, MidCap.Attachment: Studsvik Presenting Annual Accounts Data EarlierText version / Internet version / Print / Close
Studsvik Presenting Annual Accounts Data Earlier
| Source: Studsvik AB