A very strong first quarter

A very strong first quarter In both Europe and Asia the economic climate is improving on many markets, and with it the willingness to invest. And at the same time, developments on the North American market are also looking favourable. All this contributed to a very strong first quarter for the IRO Group and is reflected in operating income of MSEK 53, at the same level as the fourth quarter of 1999 and more than double that for the first quarter of 1999. - Net turnover rose by 24 per cent to MSEK 288 (MSEK 232) - Operating income was MSEK 53 (MSEK 21) - Profit after financial items was MSEK 51 (MSEK 27) - Orders received during the quarter were up by 20 per cent - Earnings per share were SEK 2,37 (SEK 1,25) Trends are pointing upwards on all the IRO Group's markets. Above all, reports from European textile machinery manufacturers that their order books are full are a clear indication that developments can be expected to continue stable and positive. In the Far East there is a definite increase in activity on the region's markets, especially on the Chinese market where demand for the IRO Group's products is steadily increasing. Once again, this is confirmation that the Group's decision to establish its own subsidiaries on this market was tactically correct. The strong finish to 1999 has been sustained as an equally strong start to the year 2000. During the first quarter of the year, orders received were up 20 per cent over the first quarter of 1999 and totalled MSEK 290, despite the fact that the strengthening of the krona had a negative effect of 4 per cent on both orders received and invoiced sales. Investing in electronics The IRO Group includes two entities, Aros Electronics AB and Electrotex, a Division within Nuova ROJ Electrotex SpA, that develop advanced electronic products for both IRO and other leading companies in the engineering industry. In 1999 these two entities had external sales totalling approx. MSEK 50 and that are expected, within the next five years, to be worth MSEK 200 a year. "Development of the purely mechanical components in IRO's yarn feeders has come a very long way," says the Group's President, Stig-Arne Blom. "By focusing on the electronic components, we'll be able to offer customers even better products and ones that are matched to their individual requirements. We'll also be making good use of our core skills in the field of electronics to develop products for use in applications outside the textile industry. It's quite clear that there is real growth potential for us here." Outlook for the year The improvement in demand for the IRO Group's products is continuing, and is expected to be sustained for the rest of the year 2000. Further information is available from: Stig-Arne Blom, President, tel: +46 321 297 01 Lennart Claesson, Financial Director, tel: +46 321 297 02 IRO is an international group that develops and manufactures yarn feeders for textile machines. Its principal customers are manufacturers of knitting and weaving machines. IRO is the world's leading manufacturer of yarn feeders, with a share of more than 60 per cent of the global market. Production takes place at locations in Sweden, Germany, Italy, China and Taiwan. Markets outside Sweden account for some 97 per cent of sales. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/19/20000419BIT00420/bit0001.doc http://www.bit.se/bitonline/2000/04/19/20000419BIT00420/bit0002.pdf