Continued growth
BT Industries AB (publ), January - September 1998 Continued growth Orders received SEK 6,594 m. (SEK 4,009 m.) Operating income SEK 386 m. (SEK 238 m.) Income after net financial items SEK 372 m. (SEK 227 m.) Continued strong market Continued strong demand in Western Europe and a stabilisation at a high level in North America have led to continued good orders received for BT Industries during the period January-September 1998. As a whole, demand has also developed positively in Eastern Europe, with the exception of Russia. Orders received amounted to SEK 6,594 m. (SEK 4,009 m.). For comparable units - i.e. excluding Raymond and MHC and at comparable exchange rates - this corresponds to an increase of 13 percent compared with the period January- September 1997. Net sales amounted to SEK 6,203 m. (SEK 3,786 m.), an increase of 64 percent. For comparable units and at comparable exchange rates, this corresponds to an increase of 13 percent compared with the corresponding period of 1997. Income after net financial items improved by 64 percent to SEK 372 m. (SEK 227 m.). The equity ratio was approximately 25 percent. Stable growth Development during the period was affected only marginally by the crisis in the stock and financial markets. "The stock market's worries do not reflect our industry's development or demand for our products," says BT Industries President Carl-Erik Ridderstråle. "We are seeing relatively stable growth." One reason, he feels, is that approximately 95% of BT's business is generated in Western Europe and North America. Its exposure in troubled markets such as Southeast Asia is limited. He adds: "Nearly 80 percent of our sales is tied to goods that people in Europe and the U.S. buy and use frequently. This is also a stabilising factor. People don't stop buying food, soap or diapers merely because the stock market is down. These types of goods still have to be manufactured, stored and distributed." A third factor he mentions is BT's extensive after-sales operations, including rentals, service, spare parts, etc., often as long-term agreements with customers. In other words, a significant, stable source of revenue. Other customer groups In addition to growth in its traditional customer segments, BT also sees growth opportunities in other customer groups where efficiency improvements and capital streamlining efforts are leading to higher demand for warehouse trucks. "These customers are typically small and medium-size companies which are not naturally served through our established sales and service companies," says Carl-Erik Ridderstråle. "This is a question of market coverage in Western Europe, which we intend to resolve." Balance sheet trimmed Efforts to free up working capital are under way. In addition, as previously announced, alternative forms are being sought for leasing financing in the U.S. This has now led to an agreement in principle with independent financiers on so-called asset-back financing. This means that significant amounts can be lifted from the balance sheet, thereby strengthening the equity/assets ratio. The fourth quarter "With the good order bookings we've had to date," says Carl-Erik Ridderstråle, "along with good capacity utilisation and expanded production capacity, we are well prepared for a fourth quarter with a high rate of deliveries." For questions regarding this interim report, please contact President Carl- Erik Ridderstråle at +46-142-862 12 or +46-70-522 07 56, or Chief Financial Officer Per Zaunders at +46-142-860 32 or +46-70-522 10 07. For general questions, please contact PR Manager Göran Skoglund at +46-142-86 409 or +46- 70-555 92 88. ------------------------------------------------------------ http://www.bit.se/bitonline/1998/10/21/19981021BIT00270/Q398E.pdf