Karl Herchenroeder
RW Monitor
2/5/2016
International nuclear technology company Studsvik released its year-end earnings report this week, which showed that year-to-year sales decreased by 5 percent in fourth-quarter 2015.
Fourth-quarter sales decreased from 247.8 million Swedish krona (SEK) ($29.3 million) in 2014 to 241.9 million SEK ($28.6 million) in 2015. Full-year sales decreased year-to-year from 909.6 million SEK to 895.4 million SEK. Cash flow after investments for the company was reported in the red for both years, showing negative 54.8 million SEK in 2014 and negative 40.1 million SEK in 2015.
Employing 800 employees in seven countries, Studsvik provides various services to the international nuclear power industry in the following areas: waste treatment, consultancy, and fuel and materials technology. In discussing the fourth quarter, Studsvik President and CEO Michael Mononen said performance was weaker than he expected across all three segments.
“Consultancy services had a mixed picture. For waste treatment, which really all are struggling in a really tough market situation, had a weaker than I expected performance,” Mononen said, adding that the fuel and materials technology sector also showed weak performance. Business activity in that area, he said, has subsequently been postponed to first-quarter 2016.
In discussing year-to-year cash flow, he said the major reason for the negative balance was lower advances tied to large business components in waste treatment. With less components comes lower advances in that area, he said.
In concluding his presentation, Mononen said Studsvik plans to increase services in the Middle East, Asia, and certain niche markets in Europe and North America, where the company sees demand. For waste treatment moving forward, he said the company will focus on cost control, while meeting with decision-makers in relevant markets. For consultancy services, the focus will be growth, and for fuel and materials technology, he said Studsvik is confident that it has found the business model for growth and improved profits moving forward.
