Celsius year-end report for 1998: Sharply improved earnings generate profit of SEK 595 M
;Celsius' consolidated income after financial income/expenses for the full year 1998 amounted to SEK 595 M, more than double the figure reported for the preceding year(281). Non-recurring items have positively affected income in an amount of SEK 194 M (-46). Operating income excl. Non-recurring items, amounted to SEK 386 M (294) for the year. Sales increased by approx. 23 percent, amounting to SEK 14.3 billion (11.6). The level of orders received declined by approx. 14 percent, amounting to SEK 9.9 billion (11.5). The Board of Directors proposes a dividend of SEK 4.00, plus SEK 1.00 as a bonus for non-recurring items, totalling to SEK 5.00 (3.40) per share. Figures in parentheses refer to 1997 Billion = 1,000 million.
"The sharply improved earnings in 1998 clearly indicate that our programme of efficiency measures and restructuring has now really started to have an impact," says Celsius' CEO Lars G. Josefsson. "The Group's new strategic orientation consolidating operations, increasing investment in commercial (non-military) activities and broadening of the international operating base has produced the anticipated effect. We are now working hard to further improve Group profitability, in line with our declared strategy. Costs incurred by the rationalization process have been charged to operations on a continuous basis throughout the year."
"During the year, Celsius' defence-oriented business achieved a breakthrough in the area of Nordic defence-industry collaboration, with the formation of a joint-Nordic ammunition company and a joint-Nordic company for the production of propellants and explosives. Celsius is well placed to participate in the ongoing restructure of the European defence industry, and to establish a position in the European structure. However, to avoid undermining our international credibility and thereby make any discussions concerning future collaboration more difficult, it is essential that the politicians rapidly determine the future orientation of Sweden's armed forces, and state which defence materiel projects are to be awarded priority," adds Lars G. Josefsson.
"The favourable business trend noted by Commercial Aviation Services continues. During the first half of the year, this business area pursued its goal of becoming a global player by making some aggressive and forward-looking acquisitions. These newly acquired companies have been smoothly integrated into the business area, which reported 55 percent growth in 1998 and a 57-percent rise in earnings. Considerable potential remains for continued growth, making commercial aviation services an important element of our strategic focus on commercial sector growth."
"Other significant investment in 1998 in the commercial sector focused on infomatics, mainly on a car-radar system that will soon, as planned be entering the industrialization phase, in preparation for eventual series production. Celsius' activities in the automotive sector have attracted a lot of attention from the automotive industry. Celsius' divestment of non-core businesses continues, and is expected to be largely complete by the end of 1999."
"By actively participating in European restructuring in the defence sector, while simultaneously continuing to develop the Group's commercial sector activities, we are convinced we are well placed to achieve our long-term profit objectives and secure continued value growth for our shareholders," concludes Lars G. Josefsson.
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Celsius year-end report for 1998: Sharply improved earnings generate profit of SEK 595 M
