STOCKHOLM, Sweden, Aug. 13, 2002 (PRIMEZONE) -- Nefab:
- Invoiced sales amounted to SEK 507 M (597), down 15%. - Invoicing to the telecom equipment industry accounted for 39% (47) of consolidated sales. - Profit after financial items amounted to SEK 23 M (41). - Earnings per share after full tax was SEK 2.02 (4.24). - Cash flow after investments amounted to SEK 61 M (-47). - Continued strong financial position. Equity/assets ratio amounted to 44.5% and the liquidity reserve was SEK 225 M. - Continued successes in the Asian markets in the area of complete packaging solutions.
Second quarter 2002 Invoiced sales in the second quarter amounted to SEK 260 M (296), down 12% compared with the year-earlier period. Order bookings amounted to SEK 276 M (284), a decline of 3%.
Profit after financial items during the second quarter amounted to SEK 13 M (17).
First half year 2002
Invoiced sales in the first half of 2002 amounted to SEK 507 M (597), a decline of 15%. Order bookings amounted to SEK 522 M (595), down 12%.
Europe
Invoiced sales to customers in Europe during the first six months amounted to SEK 390 M (437), a decline of 11%.
The decline in invoicing is entirely attributable to customers in the telecom equipment industry. Invoicing to other market segments is largely unchanged compared with a year earlier.
Marketing efforts in Eastern Europe have been intensified. Invoicing to customers in Estonia, Poland, Hungary and the Czech Republic is increasing continually from prior lower levels.
Asia
Invoiced sales in the Asian market during the period amounted to SEK 72 M (76), a decline of 5%.
Customers in the telecom equipment sector account for a majority of sales. During the first months of 2002, Nefab added several new customers. A significant number of the new sales involve complete packaging solutions, where the proportion of products produced by Nefab is low.
During the period, Nefab received an order from Andrew Corporation in China. The order involves annual invoicing of about SEK 25 M. Andrew Corporation is a leading global supplier of communications equipment, systems and service. The product program includes cabling and antennas. Nefab becomes a full-service supplier and provides all packaging material needed to handle the customer's products.
North and South America
Invoiced sales to customers in North and South America during the period amounted to SEK 43 M (84), down 48%. SEK 8 M (41) of invoicing was to customers in the telecom equipment industry. Invoicing to other market segments amounted to SEK 35 M (43), a decline of 19%.
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, primarily the automotive industry. Uncertainty in the financial markets affects Nefab's operations in Brazil, resulting in increased financing expenses.
Telecom equipment industry
Invoiced sales to customers in the telecom equipment industry declined by 28% to SEK 200 M (278), corresponding to 39% of consolidated sales (47).
The percentage of invoicing to the telecom equipment industry was highest in Asia, while other markets show a stronger concentration to other engineering industries.
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 as well as the second 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 rose 1% to SEK 54 M (53), corresponding to 11% of consolidated sales (9). Sales to the automotive industry are project oriented. A significant portion of invoiced sales consists of reusable packaging systems.
Invoiced sales to other market segments decreased by 5% to SEK 253 M (266).
Earnings
Profit after financial items for the period amounted to SEK 23 M (41).
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.
The weakening of the Brazilian currency resulted in exchange-rate losses of slightly more than SEK 2 M, which is charged against net financial items in the period. After the close of the reporting period, a further weakening of the Brazilian currency was noted. The uncertainty in the currency is related to the forthcoming elections in Brazil.
Earnings per share for the period amounted to SEK 2.02 (4.24). Return on capital employed was 10.2% (19.0).
Capacity and investments
Net Group investments for the period amounted to an expenditure of SEK 15 M (78). After eliminating production in the UK, the industrial property was sold, generating proceeds of SEK 27 M. Investments during the period of SEK 12 M pertained to machinery and inventory.
Changes in exchange rates between year-end and the closing date for the period resulted in a decline in the book value of the Group's fixed assets of about SEK 17 M.
Financial position
The equity/assets ratio at June 30 was 44.5% (43.2). Shareholders' equity per share amounted to SEK 50.30 (51.37). The Group's liquid assets on the closing date, including unutilized credit facilities, amounted to SEK 225 M (105).
Cash flow during the first half year 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 during the period amounted to SEK 61 M, compared with a negative SEK 47 M in the preceding year.
Group equity, which at the beginning of the year amounted to SEK 369 M, was increased by net earnings of SEK 14 M for the period and, including a translation difference of SEK 17 M and dividends paid of SEK 19 M, amounted to SEK 347 M at the end of the period.
Outlook for 2002
The previously submitted forecast indicated great uncertainty regarding the time for a subsequent recovery within the telecom equipment industry. This uncertainty remains.
Parent Company
Operations in Nefab AB comprise Group management, financing and coordination of marketing, production and business development. Sales during the first half year amounted to SEK 24 M (30) and profit after net financial items was SEK 33 M (15).
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