Interim Report January - September 2001

INTERIM REPORT JANUARY - SEPTEMBER 2001 · Profit after net financial items MSEK 39.3 (50.3) · Net sales MSEK 564 (495) · Earnings per share totalled 5.06 (6.55) · Increased orders received during the third quarter Sales and profit Consolidated net sales during the period amounted to MSEK 564 (495). Of total sales, MSEK 28 is attributable to the acquisition of Henaco in April and MSEK 92 to the acquisition of Sincotron in January. The Group's profit after net financial items was MSEK 39.3 (50.3). The market The market in the first part of the third quarter showed a weakening trend relative to the previous quarter. However, higher activity among ElektronikGruppen's customers in the last month of the quarter generated an increase in orders received due to gradually declining stocks among the customers. The telecom industry in Europe and Asia has a strong influence on ElektronikGruppen's development, although this dependency has been reduced through the acquisition of Sincotron and Henaco in 2001. ElektronikGruppen has intensified its focus on electronics manufacturers outside the telecom sector and the new product area for Samsung's TFT- Displays and memory circuits offers potential for volume growth. The sales of product eqiupment for microelectronics has increased considerably during 2001. ElektronikGruppen has a strong position in new devices for the telecom and electronics industries, motivating strong optimism about the future. Orders received during the period amounted to MSEK 437 (520). Operations Sales in the EG Electronic Components business reached MSEK 346 (353). Orders received amounted to MSEK 283 (383), a decrease explained by a standstill in orders for the passive components used in Ericsson's terminals during the period. On the other hand, an increase in orders was noted in the microwave and fiber-optic segments, although to a lesser extent than anticipated. Profit in the business area remained strong but was somewhat lower than the figure for last year. The EG Magnetic Technology Components business area reported sales of MSEK 42 (48) during the period. Orders received amounted to MSEK 30 (58), a decrease attributable to the general downturn in the computer and telecom markets. The business area has received approval for several new customer applications that will result in rising volumes in late 2001 and 2002. Profit in the business area was on par with the preceding year. The EG Communication business area reported invoiced sales of MSEK 129 (113), an increase that refers primarily to splicing of optical fiber and equipment for fiber production. Fiber operations suffered a sharp drop in sales during the quarter due to a stock pile-up situation among the customers. The business area's focus on broadening the customer base is expected to generate volume growth in the fourth quarter. Orders received during the period totalled MSEK 105 (131). Profit was down somewhat on the year-earlier figure. The EG Production Technology business area reported invoiced sales of MSEK 92 (46), an increase attributable to production equipment, service and training in the Swedish and Polish markets. Orders for production equipment increased during the month of September. Earnings were up on the previous year and made a positive contribution to consolidated profit. Orders received during the period reached MSEK 55 (45). Intra-Group sales amounted to MSEK 64 (39). Investments The period's net investments in tangible and financial fixed assets totalled MSEK 54.0 (8.9), most of which pertained to the acquisitions of Sincotron and Henaco. Equity ratio and liquidity The Group's financial position remains strong. The equity ratio on 30 September was 64 (52) per cent and liquid assets amounted to MSEK 41 (32). Personnel Dramatic staff cuts were made in Manila, reducing the personnel to around 450, in order to adapt capacity to the prevailing market situation. In other operations, minor adjustments were made primarily during the second quarter. The number of employees on 30 September was 760 (1,067). Future outlook The rise in orders received towards the end of the third quarter is expected to continue into the fourth quarter. This is applicable for Scandinavia while Finland is more difficult to evaluate. Financial calendar Year-end report, 19 February 2002. Vällingby, 18 October 2001 ElektronikGruppen BK AB (publ) Johnny Alvarsson President & CEO For additional information, contact: President Johnny Alvarsson, tel + 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/2001/10/19/20011019BIT00500/bit0001.doc Full Report http://www.waymaker.net/bitonline/2001/10/19/20011019BIT00500/bit0001.pdf Full Report