Combitech’s interim report for the first quarter 2020
Combitech, the Nordic solution and consultant partner, releases its interim report for January-March 2020 today. The reports shows stable order intake and sales. Covid-19 has had only a minor impact on earnings in the latter part of March.
- We see that we have been affected by Covid-19 during the latter part of March and that we will be affected during the second quarter. It’s primarily the industrial segment that is affected. This new situation also creates new opportunities, such as digital workshops and online training, says Hans Torin, CEO of Combitech.
During the quarter, Combitech was commissioned by the newly launched industrial consortium Navelink to develop secure infrastructure for the maritime sector.
- Navelink is a good example of the trend with larger industrial companies joining forces in innovative collaborations to benefit from digitalization, many times with sustainability as a driving force. In Navelink, the goal is to increase efficiency and safety and reduce the climate footprint in the entire maritime sector, with the help of digitalization, says Hans Torin.
Combitech is also part of Sustainable Underground Mining, SUM, a partnership where LKAB, ABB, Epiroc, AB Volvo and Combitech have joined forces for the digital, autonomous and carbon-free mine of the future, and in a collaboration with Stena Recycling and ABB to increase the amount of recycled material in the manufacturing industry.
KEY HIGHGLIGHTS, JANUARY-MARCH 2020:
- Combitech signs a number of framework agreements within the public sector, covering IT-consulting services and information security.
- Combitech has been commissioned to deliver secure infrastructure to the shipping sector, through the new industrial consortium Navelink. Navelink was founded in December 2019, by industrial companies Kongsberg, Saab and Wärtsilä. Three EU projects have already stepped on board. The goal is to increase efficiency, safety and reduce the climate impact throughout shipping.
- Sustainable Underground Mining (SUM), where Combitech is one of the partners together with LKAB, the Volvo Group, ABB and Epiroc, has been granted support by the Swedish Energy Agency. The support amounts to SEK 207 million. Sustainable Underground Mining (SUM) aims to develop the carbon dioxide-free, digitalized and autonomous mine of the future.
- In late March, there was a slight negative impact of the corona virus in the industrial segment, with some temporarily halted customer orders as a result.
KEY FIGURES, JANUARY-MARCH 2019:
Order intake for the period was 633 MSEK, compared to the first quarter 2019 (629 MSEK).
Sales revenues amounted to SEK 659 MSEK, an increase of 3.2 percent compared to the corresponding period in 2019 (639 MSEK).
Earnings and Margin
Operating profit (EBIT) was 47 MSEK, a decrease compared to the corresponding period in 2019 (54 MSEK). Operating margin was 7.2 percent, compared to 8.5 percent 2019.
Operating Cash Flow
Operating cash flow increased to 193 MSEK, compared to 12 MSEK during the first quarter in 2019. The improvement is largely explained by advance payments from won agreements.
FOR ADDITIONAL INFORMATION
Åsa Scherling, Head of Communication Combitech
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Merton Kaplan, IR-Manager Saab AB
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