Year end report januari-december 2001

YEAR END REPORT JANUARI - DECEMBER 2001 Profit after net financial items was MSEK 40.1 (70.1) Net sales amounted to MSEK 700 (700) Earnings per share totalled SEK 5.23 (9.19) A dividend of SEK 1.25 (1.25) per share is proposed The year 2001 was marked by a robust first quarter following on the heels of strong optimism in 2000. When the recession hit the telecom and computer industry, the effects for ElektronikGruppen were twofold. The customers quickly accumulated excess inventory, which led to a standstill in new orders and postponement of orders already placed. Sales and profit Consolidated net sales during the year reached MSEK 700 (700). Of total sales, MSEK 147 is attributable to companies acquired during the year. The Group's profit after net financial items was MSEK 40.1 (70.1). The market Orders received were up in September-October and declined in November- December, only to rise again in January 2002. Orders received during the period totalled MSEK 550 (725). Orders received in the fourth quarter amounted to MSEK 112. Although the market remains highly uncertain, customer stocks are gradually decreasing and customer activity has generally picked up. Displays and microwave components are one product segment that is showing growth. Displays have a wide customer base often outside the telecom sector, while components are linked to GSM and 3G production. EG's stronger focus on customers outside the telecom sector is starting to bear fruit. Special events during the year Two companies were acquired during the year, Sincotron in Sweden and Henaco in Norway. Dramatic staff cuts were made at the production unit in Manila and inventory values were adapted to the new market situation. All costs of this type have been charged against income as incurred. Operations EG Electronic Components Sales in the business area totalled MSEK 424 (498). Orders received amounted to MSEK 355 (536), a decrease that can be blamed on the weak telecom market. Compared with 2000, component sales for Ericsson's mobile telephones have virtually ceased. More aggressive targeting of non-telecom customers has boosted sales of display products in particular. Profit in the business area remained strong but was somewhat lower than in 2000. EG Magnetic Technology Components The business area reported sales of MSEK 49 (53) and orders received of MSEK 35 (75). Magnetic components are the segment with the largest share of business in the telecom sector. Non-telecom customers have been targeted through long-term efforts and orders in this segment have started to increase, albeit more slowly than anticipated. Profit in the business area was lower than in the preceding year. EG Communication The business area reported invoiced sales of MSEK 168 (163). Orders received totalled MSEK 132 (181). Most of the business area showed strong development in the first half of the year, but was later affected by lower investment in fiber-optic networks. This had an impact on both system components and fiber production. However, sales of supplementary products for mobile base stations in the Baltic countries remained stable in the second half of 2001. Likewise, stencil operations suffered only a minor setback. Profit was down somewhat on the year-earlier figure. EG Production Technology The business area reported invoiced sales of MSEK 105 (97). These operations were not included in ElektronikGruppen during 2000. Orders received amounted to MSEK 72 (55). This business area showed a similar pattern, with a strong first half and a weak end to the year. Cost adaptations were made in the second half of 2001. The Polish company showed favourable development and functioned as a base for component operations. The business area made a positive contribution to consolidated profit. Intre-Group sales amounted to MSEK 58 (58) . Investments The period's net investments in tangible and financial fixed assets totalled MSEK 53.7(16.0), 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 31 December was 69.1 (54.7) per cent and liquid assets amounted to MSEK 58. Personal A significant reduction in personnel was made in Manila, while the other units successively introduced personal adaptations during the year. The number of employees on 31 December was 365 (1048). Future outlook The second half of 2001 was sharp fluctuations in the market. Widespread uncertainty remains, despite strong orders received in January 2002. Cost reductions corresponding to an annual total of MSEK 20 were made and will reach full effect starting in January 2002. Dividend The Board proposes an unchanged dividend of SEK 1.25 (1.25) per share. Financial calendar Interim report January-March, 19 April 2002 Interim report January-June, 17 July 2002 Interim report January-September, 21 October 2002 Vällingby, 19 February 2002 ElektronikGruppen BK AB (publ) Johnny Alvarsson President & CEO For additional information contact President & CEO: Johnny Alvarsson, telephone +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/2002/02/20/20020220BIT00650/bit0001.doc The full year-end report http://www.waymaker.net/bitonline/2002/02/20/20020220BIT00650/bit0001.pdf The full year-end report