Allgon releases profit warning
ALLGON RELEASES PROFIT WARNING In the year-end report for the year 2000 weakening market activity in North America was noticed in the fourth quarter as regards investments in network infrastructure. This tendency has been reinforced during January-February 2001 as a number of important customers for Allgon Systems AB (ASY) severely reduced their forecasts. The markets in Asia and mainly in China developed favourably for ASY during 2000. However, during January-February 2001 volumes have been significantly reduced, especially in China. Allgon´s business area for mobile antennas, Allgon Mobile Communications AB (AMC), experienced a severe reduction of volumes during January- February due to heavily reduced forecasts from basically all customers among the mobile phone manufacturers. A reason for lower forecast is significant build-up of inventories at mobile phone operators and in retail outlets due to much lower than expected Christmas sales. For AMC a notice for a major reduction of workforce at the Åkersberga plant (Stockholm) was announced on February 21, 2001. Allgon´s other units Wireless Solutions Sweden AB (WSS) and Allgon Microwave AB (AMW), which are development companies within Bluetooth and Microwave Radio Systems, are subject to discussion regarding partnership agreements, that could lead to changes in ownership structure. Cost reduction programs for these units have been implemented and carried through. The consolidated result before financial net for the period January- February 2001 of the Allgon Group is negative due to the reasons mentioned above and amounts to MSEK -47. Additional information will be released in Allgon´s Three-month Interim Report on April 19, 2001. Allgon AB (publ) For further information, please contact: Lars Spongberg, President, Allgon ABTel: +46 708 64 06 21 or +46 8 540 822 31 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/14/20010314BIT00120/bit0002.doc http://www.bit.se/bitonline/2001/03/14/20010314BIT00120/bit0002.pdf