Kyro corporation, interim report january - march 2001

KYRO CORPORATION, INTERIM REPORT JANUARY - MARCH 2001 - Kyro demerged on 31 March 2001 into new Kyro and Tecnomen Holding - New Kyro's net sales grew by 74% to FIM 214.6 (123.3) million - Operating result improved by 152% to FIM 24.4 (9.7) million - Profit improved by 23% to FIM 7.7 (6.3) million - Financial position good with 31 March equity ratio at 80.8% (70.5) - Order book on 31 March 2001 grew compared to the corresponding period of the previous year by 26% to FIM 506.1 (403.0) million The new Kyro figures presented above and within this report for the period before 31 March 2001 are pro forma figures. New Kyro's first official fiscal period is 31 March - 31 December 2001. KYRO DEMERGER Kyro Corporation (old Kyro) demerged on 31 March 2001 into two new companies, namely Tecnomen Holding Corporation and Kyro Corporation (new Kyro). Tecnomen Holding Corporation received the shares of Tecnomen owned by the demerged company together with a corresponding amount of equity. The shares of Tamglass Ltd Oy and Kyro Power Oy held by the demerged company, as well as the company's other assets and liabilities and the remaining part of the equity, were transferred to new Kyro Corporation. The owners of old Kyro received in the demerger one new Kyro and one Tecnomen Holding share against each old Kyro share. The shares of new Kyro (KRO) and Tecnomen Holding (TEN) have been listed on the main list of the Helsinki Exchanges since 2 May 2001. Following the demerger Tecnomen Corporation is a subsidiary of Tecnomen Holding Corporation. The boards of directors of Tecnomen Corporation and Tecnomen Holding Corporation signed on 4 April 2001 a merger plan, under which Tecnomen Corporation will merge into Tecnomen Holding Corporation on the estimated date of 31 December 2001, so that the resulting company will continue the business operations of Tecnomen Corporation under the name Tecnomen Corporation. The merger prospectus for Tecnomen Corporation and Tecnomen Holding Corporation will be made public and available beginning 8 May 2001 from Hexgate at Fabianinkatu 14, Helsinki, or by order from the companies. NEW KYRO GROUP The new Kyro created in the demerger and its subsidiaries form a technology group consisting of Tamglass Ltd. Oy, the world market leader in safety glass machines, and Kyro Power Oy, the environmentally friendly energy producer. Kyro's strategy is to focus on selected business areas which are in a transition or breakthrough stage and to develop and grow them using its substantial financial resources. In terms of the new Kyro Group this primarily means growing Tamglass' operations both organically and through possible acquisitions. NEW KYRO GROUP'S NET SALES AND OPERATING PROFIT (PRO FORMA) The net sales of the new Kyro Group in the first quarter grew compared to the corresponding period of the previous year by around 74% and totalled EUR 36.1 (20.7) million. The net sales of Tamglass doubled and the net sales of Kyro Power grew by 15%. The new Kyro's operating profit was EUR 4.1 (1.6) million, representing significant growth from the previous year owing to Tamglass' good profit development. Net financial items for the interim period totalled EUR -2.0 (0.6) million, out of which realised and unrealised exchange losses on bonds and securities amounted to EUR 3.1 million. Other net financial items amounted to EUR 1.1 million. The new Kyro Group's first quarter profit before taxes and minority interest declined by 7.8% to EUR 2.1 (2.2) million. Profit for the interim period was EUR 1.3 (1.1) million, representing a growth of 23%. Earnings per share were EUR 0.03 (0.03) and equity per share at the end of the period stood at EUR 3.29 (2.78). The new Kyro Group's order book on 31 March 2001 increased by around 26% from the corresponding period of the previous year to stand at EUR 85.1 million (67.8), but decreased from the record level (87.7) of the turn of the year by around 3%. Table 1: Pro forma net sales, operating result and personnel of the new Kyro's business groups KYRO CORPORATION Veli Kronqvist Arja Louhimo Chief Financial Officer Group Controller For further information on Kyro's interim report, please contact: President and CEO Pentti Yliheljo and Chief Financial Officer Veli Kronqvist. Investor relations Mika Nevalainen, V.P., Corporate Communications, Kyro Corporation Tel. (+358 0) 400 882 024 Distribution Helsinki Exchanges Key media ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/08/20010508BIT00040/bit0002.doc The full report http://www.bit.se/bitonline/2001/05/08/20010508BIT00040/bit0002.pdf The full report