Interim Report April 1 - December 31, 2001

Interim report for the period April 1 - December 31, 2001 (9 months) Net revenues amounted to MSEK 1 793 (1 784). Operating income, not including items affecting comparability, amounted to MSEK 73 (149). Operating income is being charged with current costs for structural measures. Cash flow from operations amounted to MSEK 74. Continued weak market performance for operations depending on the telecom and electronics sectors and capital investment goods. Previously initiated action programs are now being implemented according to plan and in certain units additional action has been taken. Overall cost savings will amount to MSEK 40. Stronger financial position despite repurchases of own shares equivalent to just short of 5 percent of the capital. 3 months 9 months 12 months ending ending ending Dec. Dec. Dec. Dec. Dec. March 31, 31, 31, 31, 31, 31, 2001 2000 2001 2000 2001 2001 Net revenues 595 683 1 793 1 784 2 511 2 502 Operating income* 6 57 73 149 125 201 - in percent of net 1.0 8.4 4.1 8.3 5.0 8.0 revenues Income after financial 6 56 70 146 118 194 items * - in percent of net 1.0 8.3 3.9 8.2 4.7 7.8 revenues Earnings per share, 0.10 1.47 1.68 3.78 2.92 5.02 SEK* * Not including items affecting comparability of MSEK -3 during Q2 of the current year and MSEK 13 during Q2 of the preceding year. NET REVENUES AND RESULT Nine months April - December 2001 Net revenues of the Addtech Group were at the same level during the first nine months of the financial year as during the preceding year, MSEK 1 793 (1 784). MSEK 255 thereof was business volume added by units acquired during the preceding operating year. Operating income not including items affecting comparability amounted to MSEK 73 (149) and income after financial items amounted to MSEK 70 (146). Costs affecting comparability amounted to MSEK 3, attributable to the listing of Addtech on the O-list of the Stockholm Stock Exchange. In the preceding year there was revenue of MSEK 13 affecting comparability in the form of SPP refunds. Income after taxes amounted to MSEK 45 (115), or SEK 1.60 per share (4.11). For the most recent 12-month period income after taxes was MSEK 79 and SEK 2.85 per share, respectively, which can be compared with MSEK 149 and SEK 5.36, respectively for the preceding operating year. Third quarter 2001 (October - December) Net revenues declined during the third quarter by 13 percent to MSEK 595 (683). The business volume added by newly acquired units was MSEK 63. The market situation for units with business in the telecom and electronic sectors continued to be weak and no improvement compared to what was reported in the preceding quarterly report has been observed. Demand for machinery and equipment of an investment character was very weak during the period. The month of December was marked by a generally weak market situation, which had a further negative effect on the quarter when compared with prior periods and the preceding year. In order to counteract the effects of continued weakness in the business outlook and to adapt the organization to a lower business volume, the previously initiated action program will be carried out according to plan. Further action has been taken in certain units. The effects of action taken will be that the number of employees will be reduced by about 100 from the level at the end of June of the current year when the action program was initiated. This constitutes a decrease of 8 percent. The operating result is charged for current costs of personnel reductions and other structural measures. The overall effect of action taken will be that aggregate costs will be reduced by approximately MSEK 40 on an annual basis (the previous estimate was about MSEK 30). Operating income amounted to MSEK 6 (57). The earnings drop is explained primarily by a negative reesult in Production Systems. In units acquired during the preceding year, measures have been instituted to raise earnings to a satisfactory level and in several of the other companies measures to increase efficiency are being taken to adapt the organization to the lower business volume. Income after financial items dropped to MSEK 6 (56). Net financial items amounted to MSEK 0 for the period (-1). BUSINESS AREAS Income figures in the comments to the Group's business areas do not include items affecting comparability. Production Systems provides systems solutions primarily for production processes in the electronics, engineering and automotive industries. 3 months 9 months ending 12 months ending ending Dec. Dec. Dec. 31, Dec. 31, 2000 Dec. Dec. 31, 31, 31, 2001 31, 2001 2001 2000 2001 Net 131 229 452 578 679 805 revenues Operatin g income -16 20 -7 42 11 60 - in percent -12.3 8.6 -1.6 7.1 1.7 7.5 of net revenues Net revenues declined by 22 percent to MSEK 452 (578). The business volume added by newly acquired units amounted to MSEK 31. Operating income declined to MSEK -7 (42). Production Systems, where production equipment for the electronics and telecom sectors make up a substantial proportion of operations, is the unit of the Group most severely affected by the economic downturn. Lower demand from the telecom industry is also due to a structural change, which has created uncertainty in investment decisions among customers. The business situation is considerably weaker than during the corresponding period one year ago. During the third quarter, new orders were at the same level as invoicing, however. The negative result for the third quarter is due primarily to the fact that the organization was dimensioned for a higher business volume. In addition, certain project-oriented operations aimed at environmental solutions had a considerable negative effect on earnings. Action has been taken to minimize future negative effect on earnings. Action being taken to offset the negative effects of a weak economic situation will not have a noticeable effect on costs until during the fourth quarter of the financial year. Transmission Systems markets transmission components, machine parts, hydraulic and automation systems for the manufacturing industry and after-market. In-house manufacturing is conducted primarily in the case of chains, gaskets and machine parts. 3 months ending 9 months 12 months ending ending Dec. 31, Dec. Dec. Dec. Dec. Mar. 2001 31, 31, 31, 31, 31, 2000 2001 2000 2001 2001 Net revenues 220 186 657 497 889 729 Operating income 7 14 33 40 46 53 - in percent of net revenues 2.9 7.5 5.0 8.1 5.1 7.3 Net revenues increased by 32 percent to MSEK 657 (497). The business volume added by newly acquired units amounted to MSEK 153. After a weak third quarter, operating income amounted to MSEK 33 (40). The lower operating result is explained to a significant degree by a negative result in a manufacturing unit with elements of contract production. In-house production of chains, transmissions and machine elements continues to show a positive development and good capacity utilization. The market situation for sales of components to producing customers in mechanical industry and aftermarket was marked by a good market situation, even though a downturn was noted during the latter part of the period. Component Systems develops and markets niche electro-mechanical and electronic component solutions for the manufacturing industry and the after-market. 3 months 9 months 12 months ending ending ending Dec. Dec. Dec. Dec. Dec. 31, Mar. 31, 2001 31, 31, 31, 31, 2001 2001 2000 2001 2000 Net revenues 244 269 686 711 946 971 Operating income 15 24 48 69 70 91 - in percent of net revenues 6.2 9.0 7.0 9.8 7.4 9.4 Net revenues decreased by three percent to MSEK 686 (711). The business volume added by newly acquired units amounted to MSEK 71. Operating income decreased to MSEK 48 (69). The market situation was affected primarily by a weakening within the telecom sector, with lower demand for components as a consequence. A continued stable sales volume was recorded in sales to the machine and automotive industries. This was true for components as well as systems solutions for trucks and forest machinery. PROFITABILITY The return on capital employed for the most recent 12-month period was 21 percent, as compared with 38 percent for the preceding financial year. The corresponding data for return on equity were 18 percent and 36 percent, respectively. FINANCIAL POSITION AND CASH FLOW The equity ratio at the end of the period was 39 percent, as compared with 34 percent at the beginning of the financial year. Shareholders' equity per share amounted to SEK 16.00, as compared with SEK 14.90 at the beginning of the financial year. The Group's net financial indebtedness amounted to MSEK 40 at the end of the period, which is an increase by MSEK 24 compared to the situation at the beginning of the financial year. Cash flow from current operations amounted to MSEK 74 during the period. Capital expenditures in fixed assets amounted to MSEK 16 and disposals amounted to MSEK 7. Financing operations were affected by repurchases of own shares in an amount of MSEK 46. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/05/20020205BIT00910/bit0002.doc The Full Report http://www.waymaker.net/bitonline/2002/02/05/20020205BIT00910/bit0002.pdf The Full Report