Interim report April 1 - September 30, 2002 (6 months)

LAGERCRANTZ GROUP - Interim report April 1 - September 30, 2002 (6 months) - The operating result improved by MSEK 9 and amounted to MSEK 7 (61). The effect of implemented cost savings has contributed to the improvement in earnings. - Net revenues amounted to MSEK 710 (1077). - Cash flow from current operations amounted to MSEK 18 (10) and the Group's equity ratio improved to 56 percent (43). - The Group's costs have now been adapted to the current market situation. Despite forceful cost containment action, the Group stands well prepared to meet a market recovery. - Sharper focus on the Groups' future growth. NET REVENUES AND INCOME Net revenues amounted to MSEK 710 (1077). Operating income amounted to MSEK 7 (61), with an operating margin of 1 percent (5.7). Income after financial items amounted to MSEK 1 (57). This result includes items affecting comparability in an amount of MSEK 1 (6). The Group's operating result has improved by MSEK 9 since the first quarter. Income after taxes amounted to MSEK 3 (40), which is equivalent to SEK 0.11 per share (1.44). For the most recent 12-month period the corresponding values are MSEK 16 and SEK 0.59, respectively, as compared with MSEK 54 and SEK 1.96, respectively, for the preceding year. The market situation was stable during the period, even if the Group's main business in Division Components most clearly is marked by a continuing slow flow of orders. Cost containment efforts implemented during the first quarter have improved earnings for the second quarter, despite somewhat lower revenues. COMPONENTS Net revenues amounted to MSEK 400 (716). The comparative figure includes businesses sold in March 2002 with revenues of about MSEK 50. The operating result was MSEK -2 (40). Additional cost containment action implemented during the first quarter had a positive effect on earnings during the second quarter, for which operating income of MSEK 1 was posted. The area of industrial communication, which is focused on a broad customer group, continues to evolve in a positive direction. The division's market activities in this new area have resulted in a growing flow of new orders. Other operations are still affected by market weakness. PRODUCTION SERVICES Net revenues amounted to MSEK 90 (108), and operating income was MSEK 2 (7). Earnings on manufacturing of customized cable harness products at The Group's own plants and via partners in Asia improved during the second quarter. Streamlining in combination with cost-cutting efforts had positive effects. The operating margin for this business was 7.4 percent during the second quarter, which is an improvement from 3.1 percent during the first quarter. COMMUNICATION Net revenues amounted to MSEK 220 (253). Operating income was MSEK 5 (7). As expected, earnings improved during the second quarter and the business continues to develop in a positive direction. Lingering uncertainty about major projects in the telecom sector remains, however. The business in the area of security is showing positive development. Focus and capital spending in this area will be further strengthened during the third quarter and beyond. LAGERCRANTZ GROUP Lagercrantz Group offers - within well defined niches and in partnership with customers and producers - products and solutions in the fields of electronics and communications that increase customers' competitiveness. Our vision is to be a growth-oriented, profitable and international knowledge-based company in electronics and communications solutions. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/11/25/20021125BIT00630/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/11/25/20021125BIT00630/wkr0002.pdf The Full Report