Interim report 1 january - 30 september 2000

INTERIM REPORT 1 January - 30 September 2000 *Net turnover was MSEK 847 (MSEK 696), an increase of 22 per cent *Order levels were 16 per cent up on those for the first three quarters of 1999 *Operating income totalled MSEK 142 (MSEK 53) *Income after financial items totalled MSEK 135 (MSEK 57) *Earnings per share amounted to SEK 6,47 (SEK 2,63) *Shares in IRO will cease to be quoted on the Stockholm Stock Exchange during Autumn 2000. THE GROUP IN BRIEF 1 Jan-30 Sept 1 Jan-30 Sept Change 2000 1999 2000/1999 MSEK Net turnover 847 696 +22 Operating income before restructuring costs 142 65 + 118 Net operating income 142 53 + 166 Income after financial 135 57 + 138 items 1 Earnings per share , SEK 6,47 2,63 + 146 1 Based on a total of 12,5 million issued shares TRENDS IN OPERATIONS Markets and sales The third quarter saw the continued favourable development of the IRO Group's net turnover. Turnover for the first three quarters of the year totalled MSEK 847, an increase of some 22 per cent over the corresponding period in 1999. Order intake also continued at a very high level, and showed an increase of 18 per cent over that for the third quarter of 1999. The strengthening of the Swedish krona at the beginning of the year had a negative effect on accumulated order intake over the first nine months corresponding to 3 per cent. DEVELOPMENTS IN OPERATIONS Repayment receivable from SPP Insurance Group The Interim Report for the first six months of 2000 set out the way in which the IRO Group intended to utilize the one-off payment of MSEK 16,7 to be received from the SPP Insurance Group in connection with over- consolidation. Since the publication of that Report, SPP has reduced the funds to be allocated by MSEK 4 on the basis that the amount in question relates to a company with a different registered number. The IRO Group has appealed against the reduction, but no final decision has yet been announced. The IRO Group takes the view that it is entitled to receive the full amount of MSEK 16,7. No change has been made in the way in which this sum has been reported. Operating income Operating income continued to develop strongly during the third quarter, and totalled MSEK 37, almost half as much again as that for the third quarter of 1999 (before restructuring costs). Operating income for the first three quarters of the year was MSEK 142, as against MSEK 65 (before restructuring costs) for the corresponding period in 1999, as the following table illustrates: ONGOING INVESTMENTS During the first nine months of the year, net investments in fixed assets exclusive of properties amounted to MSEK 49 (MSEK 25). The total for the full year is expected to be in the region of MSEK 60. In addition and as reported earlier, the sum of MSEK 17,4 has been invested in the repurchase of the premises in Ulricehamn which house the Company's headquarters. Investments made over the whole of 1999 totalled MSEK 44. LIQUIDITY AND FINANCING Positive cash flow for the first nine months of the year was MSEK 134, as against MSEK 63 for the corresponding period in 1999. Net indebtedness was MSEK 151 (MSEK 179), equivalent to a debt/equity ratio of 0,28 (0,39). As at 30 September 2000 the Group's equity/assets ratio continued high, and was 50,4 per cent as against 47,6 per cent at the same point in 1999. PERSONNEL During the first nine months of the year the average number of employees in the Group, expressed in terms of full-year employment, was 946 (895). The increase is accounted for by the increase in production volumes. OUTLOOK FOR THE REMAINDER OF 2000 Order intake has stabilized at a high level, and is expected to be sustained throughout the remainder of the year. FUTURE FINANCIAL REPORTING Following the acquisition of the majority of its issued share capital by a Belgian company, N.V. Michel van de Wiele, shares in IRO will cease to be quoted on the Stockholm Stock Exchange during Autumn 2000. Ulricehamn, 24 October 2000 Stig-Arne Blom President This Interim Report is based on the consolidated accounts as at 30 September 2000, and has not been the subject of a separate examination by the Company's auditors. IRO is an international group engaged in the development and manufacture of yarn feeders for textile machinery. Its principal customers are manufacturers of weaving and knitting 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. IRO AB (publ), Box 54, SE-523 22 Ulricehamn, Sweden Tel: +46 321 297 00. Fax: +46 321 298 00. e-mail: info@iro.se Internet: www.iroab.com ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/24/20001024BIT00420/bit0001.doc The full report http://www.bit.se/bitonline/2000/10/24/20001024BIT00420/bit0002.pdf The full report