Interim report January - June 2002

INTERIM REPORT JANUARY - JUNE 2002 · Profit after net financial items MSEK - 10,2 (38,0) · Operating income totalled MSEK 278 (430) · Earnings per share for half-year amounted to SEK - 2,19 (4,91) · Profit excl exchange rate differences MSEK - 5,1 (36,0) Sales and profit Consolidated net sales during the period amounted to MSEK 278 (434). Cost savings for overhead expenses with MSEK 26 compared to same period last year has not been enough to compensate the sharp drop in volume. Therefore the profit excluding exchange rate differences reached MSEK - 5.1 (36,0). The fall of USD during the period with stress on May- June has caused negative exchange rate differences of MSEK 5. The drop in volume combined with the negative exchange rate difference reached a profit after net financial items for the period January - June of MSEK -10,2 (38.0) . Intra-Group sales amounted to MSEK 15 (41). The market Orders received was down slightly compared to first quarter, 2002. It applies especially to telecom related components which has decreased during second quarter. A survey of the business cycle for the electronic market show that the sale of connectors for printed circuit cards has fallen five quarter in a row which has not happen before in a twenty years' period. Operations EG Electronic Components Sales in the business area reached MSEK 182 (258) and orders received amounted to MSEK 177 (223). The business area is still suffering the effects of the weak telecom market. The formerly high stock levels among the customers have decreased, but have not yet reached normal levels. The business area's stocks are in balance. Favourable orders received have been noted for microwave and shielding products, which are included in applications such as 3G and GSM. The business area, although exchange losses, continued to show a positive profitability. EG Magnetic Technology Components The business area's amounted to MSEK 15 (30) and orders received totalled MSEK 15 (23). The fall-off in orders is mainly attributable to a strong dependency on telecom customers. Efforts have been made to broaden the customer base outside the telecom sector. Increased orders received are being noted for certain products, particularly planar transformers. Despite cost adaptations, profit was lower than the first six months of 2001. EG Communication The business area reported sales of MSEK 35 (88) and orders received of MSEK 32 (69). The volume decrease is mainly due to reduced investment in fiber networks and transmission systems with exception of the Baltic area which has had a positive development during the period. Some strategic orders was recieved within passive components for 3G operators. Profit was down on the year-earlier figure. EG Production Technology The business area achieved sales of MSEK 51 (90) and orders received of MSEK 43 (51). Overcapacity among contract manufacturers is the key factor behind lower orders received. Largely orders received is related to quality-enhancing production equipment such as x-ray and visual inspection technology. The profit dropped heavily compared with the same period last year, but the business area is still profitable. Investments The period's net investments in tangible and financial fixed assets totalled MSEK 0.5 (54.5). Equity ratio and liquidity The Group's financial position remains strong. The equity ratio on 30 June was 66.2 (55.8) per cent and liquid assets amounted to MSEK 36 (58). Employees The number of employees on 30 June was 381 (796). The substantial reduction is foremost related to the operation in Manila. Future outlook Orders received during the last year have on several occasions increased for a couple of months and then gone down. There is for the moment no tendency that this pattern will change. Due to forward agreements and better balance between receivables and liabilities in USD, the negative exchange rate difference during Q2, 2002 is not expected to be repeated during the next coming period. Financial calendar 9-month report per 30 September, 21 October. Vällingby, 17 July 2002 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/2002/07/17/20020717BIT00450/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/07/17/20020717BIT00450/wkr0002.pdf The full report