Interim report January - March 2002

Interim report January - March 2002 * Invoiced sales amounted to SEK 246 M (301), down 18% * Profit after financial items amounted to SEK 10 M (24). * Earnings per share after full tax amounted to SEK 0.87 (2.60). * Cash flow after investments amounted to SEK 48 M (neg: 53). * The Group's financial position was strengthened. Equity/assets ratio amounted to 46.5% and the liquidity reserve was SEK 223 M. First quarter 2002 Invoiced sales during the first three months of the year amounted to SEK 246 M (301), down 18% compared with the year-earlier period. Order bookings amounted to SEK 246 M (311), a decline of 21%. Invoiced sales to customers in the Asian market increased by more than 20%, while other market areas showed a reduction in invoiced sales compared with the corresponding period in the preceding year. Profit after financial items during the first quarter amounted to SEK 10 M (24). Europe Invoiced sales to customers in Europe during the first quarter amounted to SEK 193 M (232), down 17%. Development in the Nordic market has stabilized. The downward trend at the beginning of the first quarter last year was broken and invoiced sales during the first quarter remained unchanged compared with the last quarter of 2001. The same is also true for the market in the UK. Central Europe continues to develop well. A sales office has been established in Hungary and another will be established in the Czech Republic. Invoiced sales in the southern portions of Europe showed a slight reduction compared with the preceding year. Asia Invoiced sales in the Asian market during the period amounted to SEK 33 M (27), an increase of 23%. A majority of sales were made to customers in the telecom equipment sector. During the first months of 2002, Nefab added several new customers. A significant portion of that growth involves complete packaging solutions, where the number of products purchased is substantial. In order to increase competitiveness in the Chinese market, the establishment of a testing facility is under way. Its purpose is to further improve customer-adapted product development pertaining to complete packaging solutions. North and South America Invoiced sales to customers in North and South America during the period amounted to SEK 19 M (42), down 55%. The weak economy in North America significantly impacted Nefab's operations. The situation in the Brazilian market continues to be strained. Since the market for telecom equipment is currently very weak, marketing efforts are being focused on other customer segments. Telecom equipment industry Invoiced sales to customers in the telecom equipment industry declined by 27% to SEK 98 M (134), accounting for 40% of consolidated sales (44). Nefab's packaging solutions for customers in the telecom equipment industry are utilized primarily for mobile infrastructure products. The downturn in invoicing that began approximately one year ago has now been halted and invoicing during the first quarter was just under the level reported during the fourth quarter 2001. The automotive industry and other market segments Invoiced sales to customers within the automotive industry fell by 18% to SEK 24 M (29), corresponding to 10% of consolidated sales (10). Sales to the automotive industry are project oriented. A significant portion of invoiced sales consist of reusable packaging systems. Invoiced sales to other market segments decreased by 10% to SEK 124 M (138). Earnings Profit after financial items for the first quarter amounted to SEK 10 M (24). The comprehensive restructuring that was implemented during the preceding financial year affected the Group's fixed costs in a positive manner. This is particularly true for fixed manufacturing costs, as a result of which the gross margin was only marginally affected, despite the downturn in volume. Savings were also implemented in sales and administrative costs, resulting in a reduction in levels compared with the later part of the preceding year. Earnings per share for the quarter amounted to SEK 0.87 (2.60). Return on capital employed was 8.3% (21.6). Capacity and investments Net Group investments for the quarter amounted to a gain of SEK 20 M (expenditure: 59). After eliminating production in the UK, the industrial property was sold, generating proceeds of SEK 27 M. Investments during the period of SEK 7 M pertained to machinery and inventory. During the first quarter, portions of Swedish production were transferred to a newly established facility in Estonia, where operations are now in production. Financial position The equity/assets ratio at March 31 was 46.5% (43.5). Shareholders' equity per share amounted to SEK 53.22 (51.63). The Group's liquid assets on the closing date, including unutilized credit facilities, amounted to SEK 223 M (103). Cash flow during the first quarter was very positive. The sale of property of the English company freed up SEK 27 M, while improvements were made in terms of operating capital. Cash flow after investments for the quarter amounted to SEK 48 M, compared with a negative SEK 53 M the preceding year. Group equity, which at the end of the year amounted to SEK 369 M, was increased by net earnings of SEK 6 M for the quarter and, including a translation difference of SEK 7 M, amounted to SEK 368 M at the end of the quarter. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/05/03/20020503BIT00300/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/05/03/20020503BIT00300/wkr0002.pdf The full report