FAGERSTA, Sweden, May 5, 2004 (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 2003 and business trends during the first quarter of 2004. Market conditions during 2003 were characterized as being weak in Europe and the US, while demand in Asia and South America was strong. Seco Tools, it was noted, showed strength through increased sales at fixed exchange rates and reported unchanged margins, despite market conditions. The increase in sales at fixed exchange rates during the first quarter of 2004 was attributed to favorable sales trends primarily in the US and Asia.
A presentation followed of recent activities to generate sales growth, including the start-up of new production plants and personnel recruitment in Asia. As part of Seco's efforts to strengthen its market position in selected segments and market regions, new acquisitions were made during 2003 in Brazil and the US, and a new branch office was opened in Russia. The President also described the Group's launch of new cutting tools for metalworking applications and emphasized the importance of continued product development in efforts to achieve established growth objectives. Jonas Jordberg, Senior Vice President, Group Technology, described some new products used in milling and turning applications.
In closing, Lars Renstrom discussed the importance of investments in product and market development during recent years. A product portfolio that is stronger than it has been in many years, complemented by continued expansion of the marketing organization, provides a good foundation for operations in coming years. Lars Renstrom, who recently accepted an offer to become President and CEO of Alfa Laval, expressed his gratitude for the confidence entrusted in him to lead Seco Tools for a number of years.
The Meeting approved the Board's proposal of an ordinary dividend for 2003 of SEK 14.00 per share, totaling SEK 406 M (SEK 14.00 per share in 2002, totaling SEK 404 M), after due consideration for the new share issue. May 10 was determined as the record date for entitlement to dividends, which means that the dividend is expected to be paid out on May 13, 2004.
The Meeting re-elected Gunnar Bjorklund, Magnus Brandeskar, Stefan Erneholm, Jan-Erik Forsgren, Hans Harvig, Anders Ilstam and Lars Renstrom. Carina Malmgren-Heander, Vice President, Group Human Resources and a member of the Group Management of Sandvik AB, was elected as a new member of the Board. Board member Tom Erixon declined re-election.
Fees paid to Board members were established at SEK 1,200,000, of which SEK 300,000 will be paid to the Chairman and the remainder will be divided among the other members as decided by the Board. Fees to the company's auditors will continue to be paid under current account.
The Meeting approved the motion that the Nomination Committee through the close of the next Annual General Meeting shall consist of the Chairman of the Board and representatives of 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 2005 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 2004. No remuneration will be paid to Committee members.
The Meeting also decided that issues involving auditing assignments, election of auditors and related matters shall continue to be handled by the Board in its entirety.
The Annual General Meeting in 2000 elected Authorized Public Accountants Jan-Olof Lindberg and Bernhard Ohrn as the company's auditors for a period of four years, with Authorized Public Accountants Robert Barnden and Owe Wallinder as deputy auditors. At the close of the mandate period, the auditors relinquished their positions and were thanked by shareholders at the Annual General Meeting. The registered public accounting firms of Ohrlings PricewaterhouseCoopers and KPMG Bohlins were elected as the company's new auditors for a period of four years.
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, Sweden, May 5, 2004
SECO TOOLS AB; (publ)
BOARD OF DIRECTORS
For additional information, contact Lars Renstrom, President and CEO (Tel: +46 223-401 10) or Tomas Eliasson, CFO (Tel: +46 223-401 20). 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). Seco Tools AB's corporate registration number is 556071-1060 and the address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to the Group's head office is +46 223-400 00.
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