Elektronikgruppen bk ab (publ) interim report january - september 2002

INTERIM REPORT JANUARY - SEPTEMBER 2002 ·Operating income totalled MSEK 413 (564) ·Extra inventory write-down MSEK - 20 (0) ·Profit after net financial items MSEK - 34.1 (39.3) ·Earnings per share amounted to SEK - 5.32 (6.55) Sales and profit Consolidated net sales during the period amounted to MSEK 413 (564). EG Components Denmark was consolidated into the group as from 1 July. The net sales of the company during the third quarter amounted to MSEK 11.7. The result of the continuing weak telecom market was that the stock which was purchased at the end of 2000 was written down by MSEK 20. The main part of this stock is in the Philippines. The exchange rate difference of MSEK -5.1 which arose mainly during the second quarter remains unchanged. The profit during the third quarter excluding exchange rate differences and the inventory write-down was MSEK -4. The drop in the sales volume, the negative exchange rate difference and the inventory write-down resulted in a profit after net financial items for the period of MSEK -34.1 (39.3). The business areas Magnetic Technology Components and Communication were merged into one business area with the name EG Products. Through this merger all production in the group will come together in one business area and will in this way get a better focus. The market Orders received were on the same level as the previous quarter and higher than the equivalent quarter of 2001. Dependence on telecom continues to decrease. The present market situation is characterized by the general uncertain financial situation. Operations EG Electronic Components Sales in the business area reached MSEK 277 (348) and orders received amounted to MSEK 265 (283). The business area is still suffering the effects of the weak telecom market. The previously high inventory levels held by customers have decreased, but have not yet reached normal levels. The inventory of the business area is in balance. The level of orders received have been good within the areas of microwave and shielding products, which are included in applications such as 3G and GSM. The business area continued to show a positive profitability despite exchange losses. EG Products The business area's sales amounted to MSEK 75 (164) and orders received totalled MSEK 71 (129). The decrease in orders received is mainly due to a strong dependency on telecom customers. Efforts are being made to broaden the customer base outside the telecom sector but the volume is still low. Increased orders received are being noted for certain products, particularly planar transformers. Sales of pre-terminated fibre optic cables have stabilised but there is great price competitiveness on the market. The inventory write-down of MSEK 20, which in its entirety belongs to this business area, applies mainly to components, which were intended for Ericsson's fixed network. Despite cost adaptations, profit was lower than the equivalent period last year. EG Production Technology The business area achieved sales of MSEK 71 (99) and orders received of MSEK 58 (62). Overcapacity among contract manufacturers is the main reason for lower orders received. There is still a demand for quality- enhancing production equipment and for manufacturing equipment for microelectronics. Inter-Company sales amounted to MSEK 10 (24). Investments Net investments in tangible and financial fixed assets totalled MSEK 6.2 (54.0) during the period. The main part refers to the acquisition of EG Components Denmark, which was consolidated as from 1 July. Equity ratio and liquidity The Group's financial position remains strong. The equity ratio on 30 September was 63 (64) per cent and liquid assets amounted to MSEK 43 (41). Personnel The number of employees on 30 September was 321 (760). The substantial reduction is mainly related to the operation in Manila. Future outlook With the adaptation measures that have been taken operations no longer show a loss and have a positive cash flow. However uncertainty about the market development still remains. Financial calendar Year-end report, 19 February 2003. Vällingby 21 October 2002 ElektronikGruppen BK AB (publ) Johnny Alvarsson President & CEO For additional information, please contact: President Johnny Alvarsson, tel + 46 8 759 35 00 or + 46 70 589 17 95 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/10/25/20021025BIT01260/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/10/25/20021025BIT01260/wkr0002.pdf The full report