Continued strong growth for Viking Sewing Machines AB

Continued strong growth for Viking Sewing Machines AB · Operating earnings before financial items (EBIT) rose from SEK 105 million to SEK 121 million. · Turnover up by 63 percent to SEK 1 931 million. · Total sales by volume doubled to around 500 000 machines. · Pfaff brought into profit within 8 months. Turnover in the year 2000 rose by 63 percent to SEKM 1 931 (1 185). The acquisition of the German sewing machine manufacturer Pfaff, completed on 2 May, contributed 51 percent. Growth for the Husqvarna Viking business area was 12 percent. After sale sales rose by 25 per cent. Total sales by volume, if Pfaff were included on a full year basis, including equipment manufactured by us and bought in reached almost 500,000 sewing machines, double the previous year. Operating earnings increased from SEK 105 million to 121 million, despite the SEK 27 million restructuring costs associated with the Pfaff deal. Pfaff, which was making a loss before the acquisition, was already making a positive contribution to earnings last year, excluding the acquisition costs. Cashflow from day to day operations continued to remain strong, SEK 139 million, despite the increased need for operating capital arising from the Pfaff purchase. "The Pfaff acquisition and the integration work that immediately followed has been a success, we are extremely pleased to have been able to turn Pfaff from being a loss maker into a profitable business in just eight months," says Svante Runnquist, MD of Viking Sewing Machines AB. "Progress in the year 2000 is strengthening our conviction that by investing in product development, various marketing initiatives and our distribution network, we can generate profitable growth in a market that is undergoing major changes," says Svante Runnquist. A complete annual report will be published ahead of the AGM to be held on 8 May in Huskvarna. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/11/18/20021118BIT00400/wkr0001.doc http://www.waymaker.net/bitonline/2002/11/18/20021118BIT00400/wkr0002.pdf