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- Sales amounted to SEK 605.7 million
(632.3)
- The loss after tax was SEK 47.0 million (+14.6)
- EPS was SEK –2.7 (0.84)
- Strategically important order for technical information from Saab
Automobile
Comments by the CEO, Hans Johansson:
Our focus on customers and business meant sales amounted to SEK 605.7 million
(632.3), a fall of 4% (SEK 26.6 m), but this should be seen in the light of a
weak market with stiff downward pressure on prices and that the headcount is
lower. The operating loss of SEK 49.9 million (14.6) has been burdened with
close-down costs of SEK 38.9 million, reservations of SEK 12.4 million for
high-risk projects and the SEK 8.4 million write down of goodwill.
If these items had been omitted from the results a profit of SEK 9.8 million
would have been recorded.
The main reason of our loss is the problem with the Danish business, which
accounted for 60.1% of our operating loss. A comprehensive restructuring
programme has been carried out where we are now focussing on Marine Design
and Medical and other activities have been closed down. The cost of the
restructuring and future project reserves amounted to SEK 19.4 million. We
have also written down goodwill by SEK 5.8 million. In conjunction with this
work the management at the Danish companies have been replaced.
”Fast2Profit” – Semcon’s rationalisation scheme, is continuing and positive
effects will be seen in the autumn. The rationalisation scheme will continue
for the rest of the year.
The cost of closing down activities and writing down goodwill means that we
will not show a profit at the year-end. It is our opinion that the measures
taken are sufficient to underpin a profit for 2004.
Our liquidity will be strained during the autumn, but we believe that we will
have sufficient liquid funds to cope with our undertakings this year.
Our customers have continued to show great faith in us and we are constantly
signing new contracts for attractive deals.
In the face of strong international competition, we have signed a partnership
agreement with GM/Saab Automobile AB in the technical information sector. The
agreement is for five years and worth around SEK 400 million. Semcon will
take over the Service Development and Parts Testing unit at Saab Aftersales,
which concentrates on service, spare parts and product information.
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