IFS, Unscathed by Global Economic Woes, Reports Healthy Q3

Profits double at the Swedish ERP provider on the back of defense and process contracts.


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Posted on Oct 21, 2008

Swedish ERP provider IFS defied the global economic gloom in the third quarter ended Sept. 30, reporting a 16% rise in sales to SKr 612 million and a 110% leap in EBIT profits to SKr 42 million.

Profits included charges for a restructuring program started in the second quarter.

IFS CEO Alastair Sorbie attributed the upbeat performance to the company’s continuing focus on defense and “project-oriented” industries. New wins included a contract with Lockheed Martin — the delayed closing of which had suppressed results in the second quarter.

The results mark a stark contrast to the warning sounded by larger ERP rival SAP two weeks ago, when it slashed its projected third-quarter growth to 16% to 17%, from 24% to 27%. SAP will report quarterly results later this month.

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