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Per Nilsson
Corporate Communication and Marketing Director
+46 (0)73 973 72 00
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Reports.

CEO’s comment on Interim report January-March 2018:

There is fantastic dedication and drive at Semcon. A passion to use technology to create excellent user experiences pervades the company. Through our focus on measures to strengthen margins in business development, productivity and cost efficiency, we can report strong earnings for the first quarter. Despite an adverse calendar effect, operating profit is at the same level as last year. In parallel, work with our brand and our culture has improved Semcon’s position as an attractive employer.

The Engineering Services business area achieved its highest level of profitability ever and, for the first time, reported an operating margin exceeding 10 per cent. Demand is healthy for the business area’s offering within product development and production optimisation. We have also been entrusted by several new customers who have opted to sign framework agreements with Semcon during the quarter. This creates favourable conditions as we move forward.

As previously announced, earnings for the Product Information business area were at a lower level in the first quarter compared with last year. Lower volumes in ongoing customer assignments had a negative impact on earnings. New collaborations failed to fully compensate for the volume decrease, but we expect a gradual improvement in earnings due to increased revenue for the second half of 2018. There is strong interest in digitized product information and for offerings that modernise our customers’ aftermarket business. The strategic acquisition of Haas-Publikationen in Germany in April has strengthened Semcon’s position in product information in the German market. It also provides Semcon with cutting-edge expertise in the railway industry that will produce revenue synergies in a number of markets. The acquisition is expected to have a positive impact on both operating margin and earnings per share in 2018.

Many projects are in progress where we are helping our customers to digitize their offering using smart technology. One example is the demonstration of the world’s first autonomous snowplough for airports, which has generated substantial interest and attention worldwide. Technology developed by Semcon is used to enhance the efficiency of snow removal, which improves profitability for airport operators and reduces delays. Our successful design team has again attracted attention by winning two international awards for its work on a rack system and a 3D printer for human tissue.

Measures to improve our margins continued throughout the Group. Similarly, we have maintained focus on our dedicated employees, who create fantastic user experiences from technology – every day. Although the two coming quarters are seasonally weaker, we are expecting a growth in earnings for the remainder of the year.

Interim Reports

Annual Reports