Interim report January - March 2000

Interim report January - March 2000 * Profit before taxes SEK 4.1M (11.1). The fall is due to postponed deliveries * Net sales amounted to SEK 198M (194) * Order intake increased and backlog remains sound * New generation products launched * Precision grinding company, Lidköping Machine Tools, acquired * Full-year forecast: Profit before taxes is expected to be higher than in the previous year (102), i.e. unchanged forecast Summary Order intake increased during the year though the market was sluggish. The fact that Product Area Sheet Metal Working is facing a change to a radically updated product programme contributed to the sluggishness. Profit for the period was lower than in the previous year due to delayed deliveries with an effect on profit of more than SEK 10M. In addition, substantial resources were utilised for the new product programmes and connected large-scale international launches. Profit development is expected to accelerate from the second quarter. New generation products launched During the first week of April, Herber (Tube Forming) showed its new high- tech products at the international Tube Fair in Düsseldorf. The response was very positive which bodes well for the future. On 10 April, Pullmax Ursviken's (Sheet Metal Working) new product programme was launched at the international trade fair, Mach 2000, in Birmingham. The programme consists of a new generation of high-technology press brakes and punching machines with a new design and colour scheme. The products include the latest technology in, among other things, control systems and communication. The launch is expected to have considerable effects on Product Area Sheet Metal Working's future development. In recent months, UVA (Precision Grinding) has demonstrated its unique Complete Grinding Solution@ concept (CGS) for customers in the USA and in Europe with a very positive response. Taken together, the KMT Group now has a product programme which maintains leading international standards throughout. KMT acquires Lidköping Machine Tools - LMT At the beginning of April, an agreement was made with SKF to acquire LMT. The acquisition cost, including the take-over from SKF of net interest- bearing debts, amounts to just above SEK 100M and the effects on KMT's profit in the 2-3 year term are estimated at SEK 3.50-4.00 per share. LMT is expected to report sales of approximately SEK 350M this year and has 300 employees. LMT is a world-leading manufacturer of precision grinding machines and equipment for production of bearings. LMT is at the forefront of the technical development and has promising development projects. Collaboration with SKF continues with regard to machine deliveries as well as equipment and technical development. The operations will be reviewed with the aim of achieving profitability on a par with KMT objectives. In addition to the direct acquisition cost, provisions will be made for necessary restructuring casts. The deal is subject to due diligence which will be carried out during April. LMT is expected to be consolidated in the KMT Group from May. Effects on this year's profit are estimated to be marginal. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/13/20000413BIT00350/bit0001.doc The full report http://www.bit.se/bitonline/2000/04/13/20000413BIT00350/bit0002.pdf The full report