FAGERSTA, Sweden, May 5, 2003 (PRIMEZONE) -- In his address to the Annual General Meeting of Seco Tools AB on May 5, Lars Renstrom, President and CEO, commented on a number of significant events during 2002 and the business trend during the first quarter of 2003. Global economic conditions were weak during 2002, notably in the US, but Seco Tools was stable and the company had essentially coped well with the economic slowdown, retaining profitability at a satisfactory level. In terms of fixed exchange rates, the sales increase in the first quarter 2003 was attributable to the positive sales performance in Europe and parts of Asia.
A description followed of the growth-promoting activities conducted in respect of market ventures and product development. One of the implications of Seco's strategy -- which is based on having maximum direct contact with customers -- is that markets in Romania and Finland will be developed via the company's own sales units from 2003. A continual focus on new products is of crucial importance in ensuing that Seco can reach its growth targets. Kurt Nordlund, Senior Vice President, Group Technology, presented the meeting with the program in progress at Seco for cutting tools based on polycrystalline cubic boron nitride (PCBN).
In closing, Lars Renstrom noted the importance of being first to market with new products, as exemplified by the ongoing and successful launch of new grades for turning products. The company is now preparing to meet the rise in demand, once it begins to appear.
The Meeting approved the motion that the Nomination Committee through the close of the next Annual General Meeting consist of the Chairman of the Board and representatives from the four major shareholders, for which representatives must not be Board members. The composition of the Committee ahead of the election of the Board in 2004 is to be made public as soon as it is appointed, which is expected to occur in conjunction with the publication of the company's interim report for the third quarter of 2003. No remuneration will be paid to Committee members. The AGM also decided that questions involving auditing assignments, election of auditors and so forth should be handled by the Board as a whole.
The Meeting approved the Board's proposal of an ordinary dividend for 2002 of SEK 14.00 per share, totaling SEK 404 M (SEK 14.00 per share for 2001, totaling SEK 404 M). May 8 was selected as the record date for entitlement to dividends, which means that the dividend is expected to be paid out on May 13, 2003.
The Meeting re-elected Gunnar Bjorklund, Magnus Brandeskar, Tom Erixon, Stefan Erneholm, Jan-Erik Forsgren, Hans Harvig and Lars Renstrom. Anders Ilstam was elected as a new member of the Board. Mr Ilstam is President of Sandvik Mining and Construction business area, as well as Chairman of the Board of Grimaldi Industri AB, and a member of the Board of Beijer Electronics AB. Board member Rune Nyberg declined re-election. Rune Nyberg had been a member of the Board of Seco Tools since 2002.
The Annual General Meeting in 2000 elected the authorized public accountants Jan-Olof Lindberg and Bernhard Ohrn, as the Company's auditors for a period of four years, with the Authorized Public Accountants Robert Barnden and Owe Wallinder as deputy auditors. None of these persons had given notification of wishing to step down from their assignments.
At the statutory meeting of the Board of Directors after the Annual General Meeting, Gunnar Bjorklund was re-elected as Chairman of the Board.
Fagersta, May 5, 2003 SECO TOOLS AB; (publ) BOARD OF DIRECTORS
For additional information, contact Lars Renstrom, President and CEO (Tel: +46 223-401 10), Tomas Eliasson, CFO (Tel: +46 223-401 20) or Stefan Sjodahl, Investor Relations (Tel: +46 223-401 32). E-mail may be sent to: investor.relations@secotools.com
Previously published financial information is available under "Investor Relations" at the Seco Tools' website (www.secotools.com)
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