Strong finish thanks to increase in willingness to invest

Strong finish thanks to increase in willingness to invest 1999 was an eventful year for the IRO Group. After a weak start, the pace hotted up sharply in the market for textile machinery around the time of the ITMA Fair in June. The Fair is held every fourth year and constitutes a central forum for the industry. Following it, the market was characterized by a steady and, towards the end of the year, sharp increase in sales. - Strong fourth quarter: Operating income MSEK 53, among the highest to date - Group net turnover for the year MSEK 992 (preceding year MSEK 1 028) - Operating income after restructuring costs of MSEK 12 amounted to MSEK 106 (MSEK 117) - Income after financial items MSEK 108 (MSEK 127) - Order book up by 7 per cent over the year - Earnings per share SEK 4,95 (SEK 5,64) - The Board of Directors proposes a dividend of SEK 3,30 (SEK 3,00) per share IRO's main markets developed positively during the year. The European market continued strong, and those of Asia continued to recover, with Taiwan and Korea leading the way. The market in China, too, showed welcome signs of recovery, an indication of good prospects for continued development. In view of the past two lean years for manufacturers of weaving and knitting machines, it seems probable that there is a need for new investment waiting to be met. "The demand for knitting and weaving machines continues to be strong," says IRO's President, Stig-Arne Blom. "It's first and foremost the Asian countries that are now investing in new machines and equipment, but the Mexican and Brazilian markets are also showing welcome signs of life. We therefore expect the increase in demand we've seen during the second half of 1999 to be sustained for 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 and China. Markets outside Sweden account for over 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/2000/02/23/20000223BIT00340/bit0001.doc Full report http://www.bit.se/bitonline/2000/02/23/20000223BIT00340/bit0002.pdf Full report