CEO’s comment on Interim report January-September 2017:
As previously communicated, the third quarter is weak in terms of earnings due to the vacation period and moreover one fewer working day compared with last year. During the quarter, we continued our move towards a more value-based offering and international deliveries, which provides Semcon with a favourable market position.
Our offering providing digital strategies and developing the next generation of smart, connected products has generated strong interest. During the year, Semcon has been entrusted to deliver digitisation strategies to new and existing customers in various industries that will result in products that are more attractive and user-friendly. The combination of our strategic excellence and long experience in product development, which we have obtained through collaboration with thousands of customers in a number of industries and countries, makes us an attractive and strategic partner.
Product information is essential for the user experience of a product and for our customers’ aftermarket. During the quarter, we expanded collaboration with a customer in the telecom industry that clearly sees the benefit of enhancing the quality, increasing digital distribution and streamlining the production of its product information. We are proud to see that we are a leading international player in respect of optimising our customers’ aftermarket business.
Our user-focused product development is continuing to win awards and in August Semcon won the NES Award 2017. The campaign film for smart, connected products was also voted Sweden’s second best advertising film of 2017, won the Swedish Design Award and received international acclaim. In September, we also hosted the Born to Drive research project, which shows how cars can be driverlessly transported through the logistics chain. The project is a collaboration between technology companies, authorities, component manufacturers and Volvo Cars. Our customers also demonstrated their appreciation of Semcon as a supplier when Semcon was awarded the Stora Leverantörspriset in October.
Our main aim is to further strengthen margins by becoming an even more attractive employer, by improving productivity and cost-efficiency irrespective of business model and by accelerating our strategic shift with increased sales of Semcon’s concept offerings. Even though the fourth quarter also has one fewer working day, compared with last year, we expect a strong finish of 2017 in terms of earnings.