Global market for warehouse trucks continues to grow

BT Industries, January-September 1999 Global market for warehouse trucks continues to grow Growth strongest for small trucks Orders received rose 12%: SEK 7,366 m. (SEK 6,594 m.) Invoiced sales rose 13%: SEK 6,985 m. (SEK 6,203 m.) Income after net financial items rose 16%: SEK 433 m. (SEK 372 m.) Earnings per share (after estimated tax): SEK 8.95 (SEK 7.70) Growing global market The global market for warehouse trucks continues to grow. In both North America and Western Europe, growth is primarily in the segment small trucks, so-called walkies. In other markets, development is more mixed. Growth is being reported in South America and parts of Asia and Eastern Europe, while other parts of Asia and Eastern Europe are reporting little or negative growth. Strong sales and good income After three quarters BT's orders received amounted to SEK 7,366 m. (SEK 6,594 m.), an increase of 12% compared with the corresponding period last year. The order rate has gradually risen during the year and the order backlog has increased by SEK 380 m. since the beginning of the year. This paves the way for a high delivery rate in the fourth quarter in accordance with normal seasonal patterns. Net sales amounted to SEK 6,985 m. (SEK 6,203 m.), an increase of 13% compared with the corresponding nine-month period of 1998. Income after net financial items amounted to SEK 433 m. (SEK 372 m.), an increase of 16%. Net income, after estimated tax, was SEK 251 m. (SEK 215 m.), corresponding to earnings per share of SEK 8.95, against SEK 7.70 for the corresponding period last year. North America is profit engine Carl-Erik Ridderstråle, President and CEO, points in particular to development in North America, where orders, invoiced sales and income have increased. "BT RAYMOND is performing strongly," he said. "Orders received rose by 18% thanks to new products and a very strong distribution network. As a result, we have captured market share in a growing market. "Income rose by 32% compared with the previous year, due in part to positive synergy effects." Weaker in Western Europe Carl-Erik Ridderstråle is not as pleased with BT's development in Western Europe, where orders received rose by 4% and invoiced sales by 5%. However, the operating margin is approximately one percentage point lower thus far this year than in 1998. "In order to keep pace with growth in the fastest-growing customer segments, we have taken on greater costs to improve market coverage," he explains. "In addition, we have incurred expenses for the implementation of our new business support system." He expects an improvement relatively soon, however: "With stronger market coverage, more efficient administration and new products around the corner, we should see improved margins within the near future." Mixed results in other markets In other markets, i.e. outside Western Europe and North America, the picture is mixed. Good growth is being generated in some markets, while in others it is nonexistent. Sales for the BT INTERNATIONAL business area rose by 26%, which in large part is an effect of the acquisition of MHC in the spring of 1998. The income trend has been weak, primarily due to development in certain markets in Eastern Europe. "Currently, the business area represents 7% of total sales but it has excellent long term growth potential, with substantial business volume opportunities", says Carl-Erik Ridderstråle. Strong cash flow The programs that were initiated in 1998 to free up capital have had their intended effect. Since the beginning of the year cash flow amounts to SEK 209 m. (SEK -399 m.), an improvement of over SEK 600 m. compared with the corresponding period last year. The new financing solution for leased trucks launched in the U.S. earlier in the year has also contributed to the positive trend. Questions will be answered by President Carl-Erik Ridderstråle (phone +46-142- 862 12) or Chief Financial Officer Per Zaunders (+46-142-860 32). For general questions, please contact Public Relations Manager Göran Skoglund at +46-142- 86 409 or +46-70-555 92 88. The interim report, as well as all press material, is available online at www.bt-industries.com. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/19/19991019BIT00200/bit0001.doc http://www.bit.se/bitonline/1999/10/19/19991019BIT00200/bit0002.pdf