STOCKHOLM, Sweden, April 29, 2003 (PRIMEZONE) -- Nefab:
- Invoiced sales amounted to SEK 234 M (246), down 5%. - Profit after financial items amounted to SEK 9 M (10). - Earnings per share after full tax amounted to SEK 0.81 (0.87). - Financial position remains strong. Equity/assets ratio of 48.2% (46.5) and a liquidity reserve of SEK 295 M (223). - Acquisition of packaging company in Portugal.
First quarter of 2003
Invoiced sales in the first quarter amounted to SEK 234 M (246), down 5% compared with the year-earlier period. Invoiced sales were adversely affected by an estimated SEK 14 M as a result of changes in exchange rates, which corresponds to the entire decrease. Order bookings amounted to SEK 241 M (246), a decline of 2%.
Profit after financial items during the first quarter amounted to SEK 9 M (10).
Europe
Invoiced sales to customers in Europe during the first three months amounted to SEK 179 M (193) a decline of 7%.
After the end of the period, an agreement was signed covering the acquisition of the packaging company RA Produtos de Embalagem Lds in Portugal. The company is one of Portugal's leading suppliers of packaging solutions for the industrial sector. The products are included in a broad range within the packaging area and sales amount to about EUR 3 M.
Nefab's operations are developing steadily in eastern European markets. As part of efforts in this direction, a representative office was opened in the Czech Republic.
Asia
Invoiced sales in the Asian market during the period amounted to SEK 31 M (33), down 5%. Changes in exchange rates had a negative impact of SEK 6 M on invoiced sales. In terms of local currencies, the market reported an increase in invoiced sales of 12%.
Invoiced sales to customers in the telecom equipment industry declined by 40% compared with the year-earlier period. Calculated in local currencies, the decrease was 27%. The fall in volumes to the telecom equipment industry has been replaced by invoicing to other market segments, including deliveries for Microsoft's X-box. However, volumes to this project were lower than expected during the quarter.
North and South America
Invoiced sales to customers in North and South America during the first quarter amounted to SEK 23 M (19), up 22%. Changes in exchange rates had a negative impact of SEK 7 M on invoiced sales. In terms of local currencies, the increase in invoiced sales was 58%.
Despite the increase compared with the first quarter in the preceding year, the volumes in the North American market show a decline compared with the most recent three quarters.
Operations in Brazil progressed positively during the quarter. Among other developments, cooperation has commenced with a number of players in the automotive industry. Deliveries to this segment are rising continually from previously low levels.
Telecom equipment industry
Invoiced sales to customers in the telecom equipment industry declined by 15% to SEK 83 M (98), corresponding to 36% of consolidated sales (40). Changes in exchange rates had a negative impact of SEK 6 M on invoiced sales. Recalculated in terms of unchanged currencies, the market reported a decrease in invoiced sales of 9%.
Nefab's packaging solutions for customers in the telecom equipment industry are utilized primarily for mobile infrastructure products.
Automotive industry and other market segments Invoiced sales to customers in the automotive industry rose 2% to SEK 25 M (24), corresponding to 11% of consolidated sales (10). Market investments in reusable systems have declined as result of overall economic conditions. However, demand rose for products related to the after market and for so-called CKD deliveries.
Invoiced sales to other market segments increased by 1% to SEK 126 M (124).
Earnings
Profit after financial items for the report period amounted to SEK 9 M (10). The effect on earnings due to currency movements was marginal.
Earnings per share for the three-month period amounted to SEK 0.81(0.87). Return on capital employed was 8.8% (8.3).
Capacity and investments
Net Group investments for the period amounted to SEK 7 M ( -20).
Financial position
The equity/assets ratio at March 31 was 48.2% (46.5). Shareholders' equity per share amounted to SEK 52.96 (53.22). The Group's liquid assets on the closing date, including unutilized credit facilities, amounted to SEK 295 M (223).
Cash flow after investments during the first three months amounted to a shortfall of SEK 6 M, compared with a surplus of SEK 48 M in the year-earlier period. Cash flow for 2002 included the sale of property for SEK 27 M. Most of the increase in working capital during the year is attributable from operations in Asia, where operations entailed a significant decrease in accounts payable.
Group equity, which totaled SEK 362 M at the beginning of the year, reflecting an increase of SEK 6 M for net earnings for the year and a reduction of SEK 2 M due to translation differences, and thus amounted to SEK 366 M on the closing date.
Outlook for 2003
Due to factors of uncertainty in the business environment, no forecast is offered for 2003.
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