Interim Report January - March 2002

Interim Report January - March 2002 First quarter 12 months SEK M (unless otherwise 2002 2001 0104-0203 2001 stated) Order intake 234 253 1,200 1219 Backlog 387 444 387 399 Net sales 246 333 1,258 1345 Operating profit 3 21 45 63 Profit after financial 1 18 34 51 items Net profit after tax -2 13 19 34 Profit per share, SEK -0.39 2.58 3.83 6.81 - Profit before taxes SEK 1M (18) - Net sales amounted to SEK 246M (333) - a fall of 26 per cent - The order intake amounted to SEK 234M (253) - a fall of seven per cent - Weak machine investment market due to the development within the vehicle industry - Continued positive cash flow trend - Further cost reductions implemented during the quarter - KMT and Bystronic have started collaboration in France. President's comments The Group's operating profit for the first quarter fell to SEK 3M (21) and profit before taxes fell to SEK 1M (18). The fall in profit is due to significantly lower invoicing which, in turn, is a consequence of the weak machine investment market due to the development within the vehicle industry. It was also due to the low backlog at the turn of the year, as stated in the Annual Report for 2001. The profit for the quarter was achieved through the rationalisation and cost reductions implemented during 2001, which are now making an impact. The focus on reduced capital tied up generated continued results and contributed to an improvement in the cash flow of SEK 34M. KMT's liquidity remains strong and the equity ratio high. During the quarter, the Group's order intake fell as a result of a continuing weak investment trend in Europe and the USA. The investment climate in the Chinese market, which is becoming increasingly important for KMT, remained positive and several interesting projects are on the agenda. In Precision Grinding, Lidköping (LMT) reported a continuing positive development in which Phase Two of the restructuring plan - an aggressive marketing strategy - contributed to a continuing increase in order intake. UVA's order intake fell as several of its main customers are currently exercising restraint in their investments. Sheet Metal Working and Tube Forming operate in what is continuing to be a difficult market. Further cost reductions were implemented during the quarter. These will make an impact during the second half of 2002 and will, for example, involve a reduction in Herber's 'break-even sales'. The collaboration with Bystronic has been further developed. As a result, Bystronic will start selling Pullmax machines in the French market during the second quarter. Prospects for the future The uncertainty about industrial investment is expected to continue for some time. As a consequence of the market situation, many of KMT's large customers are deferring their investment decisions. Due to the current uncertainty relating to future market trends, no forecast will be made for 2002. Based on the measures implemented during the past year and our belief in the future, we feel that KMT is well equipped for when investment accelerates. Björn Kumlin President and CEO For further information, please contact Björn Kumlin, President of Karolin Machine Tool AB, telephone +46 8-594 211 50 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/2002/04/24/20020424BIT00580/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/04/24/20020424BIT00580/wkr0002.pdf The Full Report