BT Industries, January-June 2001

BT Industries, January-June 2001 Continued earnings growth but uncertain market outlook Orders received rose 2%: SEK 6,078 m. (SEK 5,978 m.) Invoiced sales rose 22%: SEK 6,606 m. (SEK 5,414 m.) Income after net financial items up 18%: SEK 442 m. (SEK 375 m.) Major slowdown in U.S.; weakening expected in Europe Uncertain market development During the first half of 2001 the global market for warehouse trucks was dominated by the major economic slowdown in North America. The total market there declined by around one third compared with the corresponding period a year earlier. The slowdown is creating uncertainty about the future development of other markets as well. In Western Europe, demand has continued to develop positively, although market expectations have now generally been lowered. Markets outside Western Europe and North America have shown a great deal of variation, but on the whole have not declined thus far. Invoiced sales and income rise BT's orders received during the first half of the year amounted to SEK 6,078 m. (SEK 5,978 m.), an increase of 2% compared with the corresponding period last year. In Western Europe, where the market as a whole has developed positively to date, orders received rose by more than 20%, partly also as a result of structural changes. In North America, orders received decreased by nearly one third measured in dollars. Other markets reported a continued increase of 17%. Translated to comparable exchange rates, total orders received declined by 8%, attributable entirely to North America. The combination of a high order backlog at the beginning of the year and increased delivery capacity led to an increase in net sales to SEK 6,606 m. (SEK 5,414 m.), 22% higher than the first six months of 2000. Income after net financial items amounted to SEK 442 m. (SEK 375 m.), a gain of 18%. In his comment on the interim report, President and CEO Carl-Erik Ridderstråle states: "Development in North America is troubling. We are seeing a sharp, deep decline and at this point it is difficult to predict the future. The measures we have taken in business area BT RAYMOND to adjust to the decline, in combination with a good order backlog to date, have had their intended effect - margins have in fact improved in spite of the slowdown. The lower demand has not yet had a significant impact on production and deliveries. "Development for business area BT EUROPE has been largely positive. The first half-year was distinguished by good orders received. A gradually increasing delivery rate has led to a more balanced order backlog, with shorter lead times as a result. Development in North America is casting a shadow, however, and expectations in the European market will probably have to be lowered. "In other markets - business area BT INTERNATIONAL - market development as a whole has been satisfactory. Orders received, invoiced sales and income have all shown good growth. Particularly satisfying is the income growth, partly a consequence of action programs implemented in markets such as Eastern Europe. Name change During the summer BT's owner, Toyoda Automatic Loom Works, Ltd., changed its name to Toyota Industries Corporation. The name change reflects the company's diversification from its original main product, textile machinery. In recent years production and sales in other product areas, including warehouse trucks and material handling equipment, have taken on a dominant role. For questions and further information, please contact CEO Carl-Erik Ridderstråle (tel. +46 142 863 13) or CFO Per Zaunders (+46 142 860 32). For general questions, contact PR Manager Göran Skoglund at +46 142 86409 or +46 70 555 92 88. The full interim report and other press material are available on BT Industries' home page: www.bt- industries.com. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/16/20010816BIT00800/bit0002.doc http://www.waymaker.net/bitonline/2001/08/16/20010816BIT00800/bit0002.pdf The full report