Report January-February 2000

Report January-February 2000 HL Display AB (publ) * Sales for January to February increased by 17.9% to SEK 120.4 m (102.1) compared to corresponding period 1999. During February sales were SEK 68.9 m (55.9), an increase of 23.3%. * The periods profit before tax amounted to SEK 0.3 m (-1.8). Profit of the month was SEK -0.2 m (2.7). January to February 2000 in brief The consolidated sales for the period increased by 17.9 per cent to SEK 120.4 m (102.1). During February sales were SEK 68.9 m (55.9), an increase of 23.3%. Operating profit for the period amounted to SEK 1.6 m (1.8). The operating profit of the month was SEK 1.4 m (2.1). Operating profit has been negatively affected due to the fact that the price of the groups largest raw material, PVC, has increased dramatically, and now is 23% higher than at the corresponding period in 1999. In addition, the result of February has been adversely affected by a one-off cost amounting to over SEK 2 m which was a consequence of extraordinary measures taken to ensure delivery of a large development project. Profit before tax was SEK 0.3 m (-1.8). This includes a translation difference on consolidation of SEK -0.6 m compared to SEK -2,9 m in the previous year. Profit for the month was SEK -0.2 m (2.7). Net investments in fixed assets amounted to SEK 11.2 m (16.0) during the period. Successful effort on geographic growth An important part of the growth strategy of HL Display is to establish own sales companies in more and more markets. Today HL Display is represented through 100% owned sales companies in 15 countries, and in another 14 countries through distributors. The number of newly established subsidiaries has been high during the past two-year period. During 1998, subsidiaries were established in Switzerland and Hungary. Both have developed very positively during 1999 and the present year. During 1999 sales companies were formed in Latvia, Russia and Turkey. The company in Latvia expands and is currently moving into larger premises. In Russia HL Display has so far worked with a minimal organisation due to the financial crisis. Several important orders in the beginning of 2000 indicate that the market is now recovering. These signals have led to a decision to reinforce the Russian organisation during the spring. The Turkish sales company that was started in December 1999 has already had success with orders from key customers, such as Carrefour and Coca Cola. Stockholm 20.03.2000 Anders Remius Managing Director HL Display shall increase customer profitability by offering the retail trade and its suppliers cost efficient, customer-adapted display systems. Production is to be flexible and delivery times are to be kept short. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/20/20000320BIT00650/bit0001.doc http://www.bit.se/bitonline/2000/03/20/20000320BIT00650/bit0002.pdf