Sweco (SWEC) Q4 2011 earnings summary

Executive summary

• 2011 revenue rose 14% to SEK 5,987.6m; organic growth was 9%, and Q4 growth accelerated to 21%, including 14% organic growth.

• Operating profit increased 23% to SEK 531.3m and operating margin reached 8.9%; profit after tax was SEK 374.8m and EPS SEK 4.11.

• The year ended with a net interest-bearing receivable of SEK 140.9m and operating cash flow of SEK 513.0m; a SEK 3.00/share dividend was proposed.

Financial highlights

• Revenue SEK 5,987.6m vs SEK 5,272.4m; operating profit SEK 531.3m vs SEK 432.7m; profit before tax SEK 526.8m vs SEK 423.7m.

• Profit after tax rose to SEK 374.8m from SEK 299.9m; EPS was SEK 4.11 vs SEK 3.31, both before dilution.

• Operating cash flow increased to SEK 513.0m from SEK 341.8m; acquisition payments affected cash by SEK 221.3m.

• Acquisition-related costs were SEK 11.5m vs SEK 9.8m; employee bonuses, including social and pension costs, reduced results by SEK 126.6m vs SEK 102.5m.

Outlook and guidance

• The market was generally favorable, but uncertainty remained; expectations were for positive development in H1 2012, with the later part of the year harder to assess amid eurozone and economic risks.

• Outlook emphasized profitable growth, supported by strong finances, broad services and leading positions in several growth areas.

• The operating-margin target was at least 12%; 2011 margin was 8.9%. Net debt was targeted at no more than 40% of equity over time.