Interim Report January-September 2001

Interim Report January - September 2001 ·Operating profit before items affecting comparability amounted to SEK 37M (43). The fall is mainly attributable to product area Sheet Metal Working ·Profit before taxes fell to SEK 24M (52), including items affecting comparability of SEK -4M (15) ·Net sales increased by 11 per cent to SEK 949M (855). Order intake amounted to SEK 942M (942) ·Profit before taxes for the full year will be lower than 2000 after clearance of items affecting comparability (71), i.e. the forecast remains unchanged ·UVA launches a new product line, Nomyline, which has additional increased precision and performance. President's comments The Group's development remained weak. Operating profit before items affecting comparability fell to SEK 37M (43) during the nine months. Profit before taxes fell to SEK 24M (52). The fall includes one-off income from the previous year relating to SPP and one-off costs this year relating to the divestment of Nymek which together total SEK 19M. The fall in profit is due to a continued weak demand in Sheet Metal Working and Tube Forming. In both cases, this is due to low order intake, invoicing and price pressure. In the third quarter, the Group's order intake fell as a result of the decline in the investment trend which was aggravated by the terrorist attack in the USA in September. The solid backlog in Precision Grinding enabled a high level of invoicing as well as a continuing sound profit development in Precision Grinding's two units, UVA and LMT. Measures aimed at turning the trend in Sheet Metal Working and Tube Forming are being implemented. This was reported in the six-month report and can be summarised as follows: Sheet Metal Working will be consolidated and split into two units, Ursviken and Pullmax, each with a specific focus. The new structure comes into force at the turn of the year. Ursviken will focus on its core competence which is medium-sized and large press brakes in the high-end segment, with direct sales to customers in Europe, the USA and China. At the same time, Ursviken will no longer have to supply its own sales companies with standard press brakes in the volume segment. From the turn of the year, these will be supplied by Bystronic, in accordance with the Letter of Intent regarding extended and prolonged collaboration. With the product area's profitable sales companies in Scandinavia, the United Kingdom and Ireland as the base, Pullmax will consolidate and develop its market position within the thin plate volume segment with the product programme developed by the company. The new, expanded and long-term collaboration agreement between Pullmax and Bystronic will generate opportunities for Pullmax through Bystronic's newly developed press brake programme. In addition, prices and margins have been raised both in Sheet metal Working and Tube Forming, whilst the expense level is reduced by more than 20 per cent to SEK 45M. The measures have started to make an impact and will have a full effect from the turn of the year. UVA, LMT and Herber all exhibited their machines at the EMO trade fair in Hanover. UVA exhibited its new product line, Nomyline, for the first time and LMT exhibited its unique combi-grinding machine. Both customers and competitors showed significant interest. With its new technology, which includes the UVATRONIC lll control system, Nomyline provides increased customer benefit through even better precision and performance. Prospects for the future The tough and uncertain market situation is expected to continue. Precision Grinding's backlog remains solid, whereas Sheet Metal Working and Tube Forming are not expected to catch up with the first nine months' losses in the current market situation. The intake of new orders in the immediate future will decide if the cost reductions, which have been implemented so far, will be sufficient. Further measures are being prepared. The consolidated profit before tax will be lower than 2000 after clearance of items affecting comparability (71), i.e. the forecast remains unchanged. Upplands Väsby, 15 November 2001 Björn Kumlin President and CEO Seasonal variations KMT´s products are investments goods. Historically, order intake as well as invoicing and profit are lower during the first and third quarters compared with the second and fourth quarter. FUTURE INFORMATION Year-end Report 2001 14 February 2002 Interim Report Jan-Mar 24 April 2002 Interim Report Jan-June 14 August 2002 Interim Report Jan-Sep 14 Nov 2002 For further information, please contact Björn Kumlin, President of Karolin Machine Tool AB, telephone +46 08-594 211 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/2001/11/15/20011115BIT00580/bit0001.doc The full report http://www.waymaker.net/bitonline/2001/11/15/20011115BIT00580/bit0001.pdf The full report