Rejlers' Interim Report, January-June 2009

30 July 2009

 

Turnover up by 1 per cent to SEK 405.3 million (400.3)

Operating profit was SEK 25.6 million (54.2)

Operating margin amounted to 6.3 per cent (13.5)

Profit after tax was SEK 18.3 million (38.8)

Earnings per share were SEK 1.69 (3.59)

 

Turnover down by 5 per cent to SEK 195.3 million (205.4)

Operating profit was SEK 7.1 million (23.8)

Operating margin amounted to 3.6 per cent (11.6)

Profit after tax was SEK 4.8 million (17.3)

Earnings per share were SEK 0.44 (1.60)

 

Industrial market conditions have weakened further during the quarter, which has resulted in lower capacity for Rejlers industrial group. We are adapting to the order situation in Finland by making temporary lay-offs. The poorer profit in the Swedish business is mainly due to lower demand for industrial orders in the northern region where we are adapting to the market conditions.

 

Assignments within urban development are dominating Swedish operations and are increasing in importance in Finland. Energy and infrastructure assignments are providing a stable employment base. Capacity within Building and Property is satisfying due to assignments within public sector construction while private sector construction business is shrinking in line with falling property prices.

 

We continue to work hard with investments in training that will improve the company's efficiency and strength on the market. Part of our strategy is to assign industrial engineers to projects within urban development as well as cost reductions.

 

Rejlers' Norwegian operations received two significant orders during the quarter; one was a maintenance contract for Nokia Siemens, while the other was an energy metering assignment for Vattenfall in Norway. In Finland we will design and deliver all the electrical engineering and automation to a new boiler facility in Tantunmaa in Estonia.

 

Rejlers' financial position is good, and we are well prepared for any further adjustment to market conditions.

Our growth target remains. We are strengthening our business by recruiting a new CFO for the Rejler Group with effect from 17 August 2009.

 

Peter Rejler, President and CEO, tel. +46 (0)70-602 34 24, e-mail: peter.rejler@rejlers.se

Kjell Sandin, CFO, tel. +46 (0)70-399 10 64, e-mail: kjell.sandin@rejlers.se