COWI continues its financial success 

COWI A/S has ended the 2001/2002 financial year with the best financial results for several years, and has continued to make stable progress with a turnover of DKK 1,720.4m.

Group profits before tax and minority interests amount to DKK 56.8m; this corresponds to a rise of 25 per cent compared to the previous year.

Profits exceed the budget. The net after-tax profits are DKK 35.7m, as against DKK 33.2m of the previous year. The rise compared to last year’s turnover is 12 per cent. This is the third consecutive year that COWI has increased its profits. More than half (53%) of COWI’s turnover is generated in markets outside Denmark.

"Against the background of the deteriorating market conditions in the wake of the September 11 attacks in the USA and the Danish Government's reprioritisation of public sector investment, we see the results as being satisfactory," declares CEO Mr Klaus H. Ostenfeld. He goes on to say that there will be a transition period during which the Government's environmental policies will lead to a decline in turnover and earnings within a number of environmental areas. But looking a little further ahead, COWI's business spread will enable it to find alternative markets for the services affected.

Turnover in Denmark has risen by 11 per cent, whilst the company's overseas turnover has risen by 13 per cent. Growth within Denmark has primarily taken place within building and construction, operations, transport infrastructure and industry. Growth in overseas turnover may primarily be ascribed to the satisfactory results turned in by COWI's subsidiaries in Norway, Russia, Canada, and the USA, and to the acquisition of the German railway consultants, ETC. In contrast to the positive progress made by ETC, the German company BaUm COWI has been hit by the long-lasting recession in Germany and by the crisis within the German building and construction industry.

Business conditions and a restructuring of the company have affected COWI's operating results, and have led to losses of DKK 10.6m. BaUm COWI has an equity capital of DKK 12.7m for continued operation.

The rise in the Danish business units' exports abroad has been especially great in the bridge, environmental, energy and waste handling areas.

"During the course of 2002/2003 we expect growth through acquisition and development of new business areas," says Mr Klaus H. Ostenfeld. "We will build up and reinforce our principal international areas of expertise within bridge-building, hydraulic engineering, railways, environmental due diligence (ie, advice on environmental conditions and the financial risks associated with the acquisition and sale of companies) and development aid. At the same time, we will build up our activities in Central and Eastern Europe.

Published 24.06.2002