Interim report January -September HL Display

Interim report January - September 1999 HL Display AB (publ) Consolidated sales rose by 17.5 per cent to SEK 564.1 m (479.9). During September sales was SEK 72.0 m (64.0). Profit before tax totalled SEK 36.8 m (66.1). The profit for the month was SEK 6.9 m (9.3). Full year forecast; Sales SEK 760 m (646.6). Profit before tax SEK 47-50 m (71.0). Sales and earnings Group sales during the period amounted to SEK 564.1 m (479.9), an increase by 17,5 per cent compared to the equivalent period 1998. Exchange rate fluctuations had a positive impact of 1.1 per cent on net sales. The period's profit before tax was SEK 36.8 m (66.1), a decrease by 44.4 per cent. Exchange rate effects reduced profit before tax by 5.2 per cent compared with the preceding year. HL Smart Shop - customers service on the Internet th From the 30 of September, HL Display has introduced a pilot scheme, involving a number of Swedish customers who trade electronically. This first step consists of searching for information and then placing orders using the Internet. HL Smart Shop is integrated with HL Display's business system, which makes all presented information, exclusive to each customer. This system will be implemented, successively for the whole group and will result in higher service levels for the customers of HL Display and greater efficiency for the company. New companies HL Display has during 1999 established sales companies in Latvia and Russia. The build-up of these companies is part of HL Display's growth strategy for the eastern European market. Capital expenditure Capital expenditure during the period amounted to SEK 32.4 m (44.9). In addition SEK 8.5 m (2.4) is attributable to acquisitions. Depreciation according to plan during the period amounted to SEK 21.8 m (17.0). Financial position Liquidity has weakened by SEK 20.5 m since the beginning of the year and amounted to SEK 18.2 m (44.0) on September 30. This decrease is mainly attributable to the reduced profitability combined with the substantial capital expenditure. The equity/assets ratio was 51.4 (51.8) per cent, compared with 52.0 per cent at the beginning of the year. Share data Earnings per share after full tax for the past 12-month period amounts to SEK 2.96 (6.88). Shareholders' equity per share at the end of the period was SEK 27.67 (26.01). The total number of shares outstanding is 7,688,872. Personnel The average number of employees during the period was 667 (555), and the number of employees on September 30 was 707 (596). Full-year forecast The growth rate of the year is estimated to arrive close to the Group's long- term goal of a minimum rate of 20 per cent over the years. This is however far from the 30 per cent that capacity was built for, entering 1999. As capacity will be utilised during next year with good results, no downsizing is planned in addition to the actions for improved efficiency already taken. For 1999 this implies that the profit margin goal of 10-15 percent will not be attained. For the full year 1999 we expect net sales of at least SEK 760 m (646.6) and a profit before taxes of around SEK 47-50 m (71.0). This result would, after 28 per cent standard tax, imply earnings per share of SEK 4.40- 4.68 (6.65). Reporting dates Monthly report 10 months 1999 18.11.1999 Monthly report 11 months 1999 17.12.1999 Year end report 12 months 1999 24.01.2000 For the Board of Directors: Stockholm, October 1999 [REMOVED GRAPHICS] Anders Remius President To business editors: Press release for immediate publication Contact persons: Anders Remius, President and Kent Hertzell, Financial Director Telephone: +46(0)8-683 73 00 Internet: www.hl-display.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/18/19991018BIT00210/bit0001.pdf http://www.bit.se/bitonline/1999/10/18/19991018BIT00210/bit0002.doc