Interim Report Jan - Sep 1998

Interim report January - September 1998 HL Display AB (publ) * Consolidated sales rose by 37.5 % to MSEK 479.9 (349.1) compared to first nine months 1997 * Profit before tax totalled MSEK 66.1 (52.0) * Earnings by share rose to SEK 6.88 (5.60) * Full year forecast; Sales MSEK 620 (481.1) and Profit amounting to MSEK 80 (63.6) Sales and earnings Group sales rose during first nine month 1998 by 37.5 percent to MSEK 479.9 (349.1). Exchange rates has affected sales by 0.8 percent, compared with the first nine months of 1997. Profit before taxes amounted to MSEK 66.1 (52.1), an increase by 26.9 percent. A lump sum write-down of fixed assets in Falun of MSEK 1.3 is charged to profit. Exchange rate effects explain for 7 percent of the increase. Market Market demand has continued to be strong, taking into account normal seasonal fluctuation. Inflow of order is expected to be strong for the forth quarter. Sales of France, England and Germany exceeded expectations. The Group Management will be strengthened with a production manager. This will increase the development within production and logistics furthermore. Investments During the period, net investments amounted to MSEK 47.3 (22.7). The investments were mainly made in Sundsvall and pertain to production equipment. This increased production capacity is a prerequisite for the future expansion. Depreciation during the period totalled MSEK 17.0 (9.5). Financial position Liquidity was weakened by MSEK 16.0 since year-end and amounted to 44.0 (52.2) at September 30. The decline is attributable to large capital expenditures and an increase in working capital. The equity/assets ratio was 51.8 (54.8) percent, compared to 55.1 at the beginning of the year. Share data Earnings per share after full tax amounted to SEK 6.88 (5.34). Shareholders' equity per share was SEK 26.01 (20.33). The total number of shares outstanding is 7,688,872. Personnel th The average number of employees during the half-year was 555 (449). At 30 of September the number of employees was 596 (449). Outlook The long-term goal for growth of at least 20 percent with a sustained profit margin of 10 - 15 percent will be fulfilled for 1998. Sales are estimated to MSEK 620 (481.1) and Profit before tax amounting to MSEK 80 (63.6). This implies that earnings by share after estimated full tax will reach SEK 7.50. 1) Of which, translation differences September 30, 1998: MSEK +2,3; September 30, 1997 MSEK: -0,3 and Dec 31, 1997: +1,6 MSEK. 2) Estimated full tax 3) See Annual Report for definitions 4) For the Board of Directors: Stockholm, October 1998 Anders Remius President