Interim Report January - June 2001

Interim Report January - June 2001 Second Six Twelve months quarter months 0007 SEK M (unless 2001 2000 2001 2000 -0106 2000 otherwise stated) Order intake 413 370 684 579 1401 1296 Backlog 501 446 501 446 501 523 Net sales 351 416 695 615 1334 1254 Operating profit excl 22 43 42 48 74 80 items affecting comparability Items -4 15 -4 15 -8 10 affecting comparability Profit before 15 56 32 60 54 81 taxes Net profit 11 39 23 42 39 58 after tax Profit per 2.12 7.84 4.54 8.42 7.75 11.63 share, SEK Operating profit before items affecting comparability amounted to SEK 42M (48). The fall is mainly attributable to product area Sheet Metal Working Net profit fell to SEK 23M (42), including items affecting comparability of SEK -4M (15) Net sales amounted to SEK 695M (615). Order intake continued to increase. The increases are attributable to the acquisition of LMT Letter of Intent with Bystronic, collaboration partner of Sheet Metal Working, relating to long term and increased collaboration enables restructuring · Revised forecast: Profit before taxes will be lower compared with 2000, cleared of items affecting comparability (71). The previous forecast was that profit before taxes would improve slightly · President's comments The Group has not developed according to plan and operating profit before items affecting comparability fell to SEK 42M (48) during the first half of the year. Profit before taxes fell to SEK 32M (60). The change includes non-recurrent income from the previous year relating to SPP and one-off costs this year relating to the divestment of Nymek, totalling SEK 19M. The fall in profit is due to the weak trend in Sheet Metal Working and Tube Forming. In both cases, this is due to low order intake, invoicing and price pressure. However, Precision Grinding, the Group's currently largest product area, continued to develop positively. The product area's two units, UVA and LMT, reported both higher order intake and profit during the period compared with the previous year, despite the weak US market. UVA's successes in China and LMT's achievements within the European automotive industry contributed to the development. The reduced operating profit in the second quarter is also due to the fact that, last year, Precision Grinding had an extremely high delivery volume during the second quarter following earlier production interruptions. The restructuring of product area Sheet Metal Working, which was initiated during 2000, continues. The divestment of the component manufacturer, Nymek, in June 2001 forms part of this restructuring. The remaining operations in the Pullmax Ursviken Group will now be split into two companies - Pullmax and Ursviken - to achieve increased focusing and more effective marketing. With the product area's profitable sales companies in Scandinavia and the United Kingdom/Ireland as the base, Pullmax will develop its market position for thin and medium plate processing with the product programme that the company has developed. The 'new' Pullmax will also be strengthened through an increased and long-term collaboration with Bystronic which has been our collaboration partner for laser cutting machines for many years. This collaboration will give Pullmax access to Bystronic's newly developed press brake programme. The Ursviken division will be transformed into a company and will focus on medium-sized and large press brakes with direct sales to customers in Europe and the USA. The product area's existing sales companies in the USA will be transferred to the new company. Measures to achieve improved profitability and increased margins are being implemented in both Sheet Metal Working and Tube Forming. Costs will be reduced by more than 20 per cent to SEK 45M, partly by reducing the workforce in the units concerned by approximately 20 per cent. The measures will impact gradually during the second half of the year and full effect will be achieved from the turn of the year. Prospects for the future The subdued and uncertain market situation is expected to remain. Precision Grinding's positive development is expected to continue, whereas Sheet Metal Working and, to some extent, Tube Forming are not expected to catch up with half year losses. The consolidated profit before tax will be lower compared with 2000, cleared of items affecting comparability (71). The previous forecast was that profit before taxes would improve slightly. Skellefteå, 15 August 2001 Björn Kumlin President and CEO Detailed Audit Report We have reviewed this Interim Report in accordance with the recommendation issued by the Swedish Institute of Authorised Public Accountants, FAR. A review is significantly limited compared with an audit. Nothing has emerged which indicates that the Six-Month Report does not comply with the requirements in the Stock Market and Annual Accounts Acts. Skellefteå, 15 August 2001 Olof Johansson Åke Elveros Authorised Public Accountant Authorised Public Accountant For further information, please contact Björn Kumlin, President of Karolin Machine Tool AB, telephone +46 910-71 10 30 or +46 70-587 26 60, or via e-mail: bjorn.kumlin@kmt.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/15/20010815BIT00640/bit0001.doc The full report http://www.waymaker.net/bitonline/2001/08/15/20010815BIT00640/bit0001.pdf The full report