Etteplan: Slight weakness in Q3 - Nordea

Etteplan witnessed some demand weakness for engineering services begin of Q3. Organic sales growth was high 14% in Q3 y/y but that is more related to a weak comparison point rather than totally new customers and projects. The global shortage of components has now even reached engineering services taking down the company’s utilisation ratios. Operating profit margin in Q3 was 6.9% which was the lowest figure for many years. Expectations for Q4 2021 are still positive and we expect efficiency to improve late 2021. One core strength of the company is proactive utilisation ratio management why we are not overly worried about the profitability. However, risks related to China and engineering service pricing in Europe have increased according to our analysis.

Länk till analysen i sin helhet: https://research.nordea.com/api/reportfileapi?id=723104