In what is a seasonally weak quarter, Multiconsult ASA expects to report a small
positive EBIT for the third quarter 2018. Losses in LINK arkitektur and
International segments, as well as lower than expected earnings in The Greater
Oslo Area and Regions Norway are the main sources of disappointing group
earnings.
LINK arkitektur delivered a loss in the quarter mainly due to low project
activity in Denmark as a result of unsuccessful tendering and high tendering
activity in Norway. Increased project expenses combined with low project
activity in Multiconsult UK and no project activity in Multiconsult Asia
resulted in a loss in the International segment.
In Norway, The Greater Oslo Area and Regions Norway continue to improve
utilization levels compared to last year. However, growth in billing rates
continues to lag behind growth in salaries for the Norwegian workforce. This was
exacerbated in the third quarter due to the impact of the annual salary
increases effective from 1 July and the timing and extent of subsequent price
adjustments to customers.
Pressure on billing rates in the industry persists and continues to challenge
profitability.
Year to date EBIT margin is expected to be slightly below 4%. Group
profitability for FY 2018 is expected to end at a similar level to FY 2017.
Further information about the third quarter results, intensified profit
improvement measures and a capital market update will be presented in connection
with Multiconsult ASA´s third quarter 2018 earnings release on Thursday 8
November at 07.00 CET. The complete report and presentation will be available at
www.multiconsult-ir.com and www.newsweb.no.
For further information, please contact:
Investor relations:
Mirza Koristovic, Head of Investor Relations
Phone: +47 93 87 05 25
E-mail: ir@multiconsult.no
Media: Gaute Christensen, VP Communications
Phone: +47 911 70 188
E-mail: gaute.christensen@multiconsult.no
This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.