SANDVIKEN, Sweden, Feb. 11, 2004 (PRIMEZONE) -- Sandvik AB:
"It is a pleasure to note that the business climate improved during the fourth quarter and that Sandvik's sales volume increased for the sixth consecutive quarter. Measures to increase productivity and reduce costs were implemented in all business areas, but could not fully offset the negative currency effect. Earnings were affected by nonrecurring expenses that were announced in conjunction with the interim report for the third quarter.
The result for the full-year 2003 was satisfactory despite the weak business climate. The focus on market shares contributed to the increase in the Group's sales volume. Productivity improved but earnings declined due to negative currency effects and nonrecurring expenses related to the American subsidiary Precision Twist Drill. Integration of the Walter and Valenite companies acquired in 2002 proceeded as planned. The strengthened market positition combined with implemented improvement measures have made the Group well positioned for continued profitable growth.
The Board proposes an increase of the dividend to the Annual General Meeting on 6 May 2004 to SEK 10.50 per share (10.00)," says CEO and President Lars Pettersson.
Key figures Q4 Q4 Change Q1-4 Q1-4 Change
SEK M 2003 2002 % 2003 2002 %
Order intake 12 450 12 680 -2 1) 49 830 50 -1 1)
230
Invoiced sales 12 880 12 660 +2 2) 48 810 48 0 2)
700
Operating profit 805 1 523 -47 4 967 5 771 -14
% 6 12 10 12
Operating profit excl.
nonrecurring expenses* 1 405 1 523 -8 5 567 5 771 -4
% 11 12 11 12
Profit after financial 612 1 309 -53 4 187 5 063 -17
items
% 5 10 9 10
Profit after financial
items excl.
nonrecurring expenses* 1 212 1 309 -7 4 787 5 063 -5
% 9 10 10 10
Net profit 258 940 2 788 3 436
% 2 7 6 7
Earnings per share, 11.20 13.70
SEK
Return on capital 13.4 15.4
employed, %
1) +5 % and +4 %, respectively, at fixed exhange rates for
comparable units.
2) +8 % and +5 %, respectively, at fixed exhange rates for
comparable units.
* Nonrecurring expenses: write down of goodwill and restructuring
expenses totaling SEK 600 M in the fourth
quarter 2003 related to the American subsidiary Precision Twist Drill.
Sandviken, 11 February 2004
Sandvik AB; (publ) Board of Directors
Appendices: 1. Group summary 2. Invoicing and operating profit
The report has not been reviewed by the Company's auditors.
Sandvik Group's result for the first quarter of 2004 will be published in connection with the Company's Annual General Meeting on 6 May 2004.
For additional information, please call +46 (0)26-26 10 01.
A combined presentation and telephone conference will be held at the Operaterrassen in Stockholm on 11 February. For further information visit www.sandvik.com
Sandvik AB 811 81 Sandviken +46 (0)26-26 00 00 www.sandvik.com org.nr: 556000-3468
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