AF Group reports a very good first quarter

AF Group reports a very good first quarter with earnings before tax of NOK 91 million (NOK 50 million) for the period.

The AF Group reported revenues of NOK 1,423 million (NOK 1,258 million) and earnings before tax of NOK 91 million (NOK 50 million) for Q1 2010. This corresponds to a profit margin of 6.4% (4.0%) and earnings per share of NOK 0.93 (NOK 0.50). Total order book stood at NOK 6,571 million (NOK 4,961 million) as at 31 March 2010.

AF Gruppen had a cash flow from operating activities of NOK 84 million (NOK 238 million) in Q1 2010. Return on average capital employed was 39.1% (32.1%).

AF places high priority on Health, Safety and the Environment (HSE) work and has reduced its LTI rate through systematic and long-term efforts. The LTI rate in the Norwegian operations was 0.9 and the sickness absence rate was 3.7% in Q1.

“It has been a long winter with intense competition and tough market conditions. Nevertheless, the AF Group started off 2010 in line with expectations. We have seen several indications that the economic downturn has started to recede. The increasing problems in the so-called PIIGS countries in recent days, however, may dampen this trend. Therefore there is still reason to be cautious about the future. Our opportunity lies in developing our achievement culture so that we can increase the company’s attractiveness,” says Pål Egil Rønn, CEO of the AF Group.

For further information:
Pål Egil Rønn, CEO, mobile +47 909 57 713
Sverre Hærem, CFO, mobile +47 952 45 167
Wibecke Brusdal, Director Corporate Communications, mobile +47 930 93 150

AF Gruppen Quarterly reports