SOLNA, Sweden, May 14, 2002 (PRIMEZONE) -- Addtech Group
Financial report for the period April 1, 2001 - March 31, 2002
Net revenues amounted to MSEK 2 360 (2 502).
Operating income not including items affecting comparability amounted to MSEK 85 (201).
Operating income was charged with costs for structural measures on a current basis during the year, resulting in cost savings of about MSEK 40 on an annual basis.
The market situation for businesses aimed at the telecom and electronics sectors was weak during the year.
Cash flow from current operations, excluding taxes paid attributable to last year's result, amounted to MSEK 91 (173).
The equity ratio increased to 41 percent despite repurchase of shares equivalent to just short of 5 percent of total capital.
A cash dividend of SEK 1.20 is proposed.
3 months to 12 months to
March 31, March 31,
2002 2001 2002 2001
Net revenues 567 718 2 360 2 502 Operating income* 12 52 85 201 - in percent of net revenues 2.2 7.3 3.6 8.0 Income after financial items* 10 48 80 194 - in percent of net revenues 1.9 6.7 3.4 7.8 Earnings per share, SEK* 0.22 1.23 1.91 5.02
* Not including items affecting comparability
NET REVENUES AND INCOME
Financial year April 1, 2001 - March 31, 2002
Revenues of the Addtech Group during the financial year amounted to MSEK 2 360 (2,502). MSEK 273 hereof was additional business volume generated by newly acquired units. Currency effects affected revenues by MSEK 84 in a positive direction.
The year was marked by a pronounced slowdown for the Group's telecom and electronics-related businesses, especially for investment type products. The drop in demand was seen early during the year and no discernible improvement has occurred.
In spite of the overall economic slowdown, most units -- with the exception of those related to telecom -- were able to maintain sales at a satisfactory level. Units focused on niche production of transmission products and machine parts had a positive development during the year and good capacity utilization. Sales of components and sub-systems from the Group's sharply niched units to the machinery and vehicle industries were also stable.
In order to counter a weaker business climate, a forceful action program was launched. On an annual basis this program is expected to reduce costs by about MSEK 40. Action taken involved some 100 employees, equivalent to a reduction of close to 10 percent from the level at the end of June when the action program was initiated. Operating income was affected on a current basis by costs for personnel reductions and other structural measures.
Operating income, not including items affecting comparability, amounted to MSEK 85 (201) and income after financial items was MSEK 80 (194). Added to this result are income affecting comparability of MSEK 4, as a result of sales of real estate, and costs affecting comparability of MSEK 3, attributable to listing Addtech on the O- list of the Stockholm Stock Exchange. For the preceding year there was income affecting comparability of MSEK 13 as a consequence of repaid SPP funds.
Income after taxes amounted to MSEK 53 (149), or SEK 1.92 per share (5.36). The effective tax rate was 32 percent (28).
Fourth quarter 2001/02 (January - March)
Net revenues during the fourth quarter amounted to MSEK 567 (718). Revenues added by newly acquired units were MSEK 18.
The market situation for units doing business with the telecom and electronics industries continued to be weak and no improvement compared to what was reported in the previous quarterly report has been registered. Demand for machinery and equipment of a capital investment type was extremely weak.
For the other areas of operation the market situation was at the same level as in prior periods of the financial year. In Transmission Systems, however, some weakness was noted in sales of components.
Operating income amounted to MSEK 12 (52). The lower result is explained by a negative result in Production Systems, but the other two business areas also registered lower results than for the corresponding period one year ago. Income was burdened by shutdown and restructuring costs of MSEK 12 during the quarter.
Income after financial items amounted to MSEK 10 (48). The period's net of financial items was MSEK -2 (-4).
BUSINESS AREAS
Production Systems provides systems solutions primarily for production processes in the electronics, engineering and automotive industries.
3 months to 12 months to
March 31, March 31,
2002 2001 2001 2002
Net revenues 118 227 570 805 Operating income -9 18 -16 60 - in percent of net revenues -7.5 8.4 -2.8 7.5
Net revenues declined by 29 percent to MSEK 570 (805). Revenue added by newly acquired units amounted to MSEK 31. Operating income amounted to MSEK -16 (60).
The sharp economic downturn in the telecom industry caused sales to drop significantly during the financial year. The uncertainty with respect to investment decisions brought on by structural changes in telecom and the industry's overall low propensity to invest were also negatives.
The decline in results compared to the year before was due to lower sales in combination with an organization that was dimensioned for a higher business volume. In addition hereto, certain project-related business aimed at environmental solutions had a negative impact on earnings.
Adjustments to cope with a lower volume of business continued during the last quarter of the financial year. A balance has had to be struck between on the one hand a short-term need to cut back to remedy an unsatisfactory earnings situation and a longer term need to keep talent for a rebound in the basically interesting telecom market.
The action program includes a reduction in the number of employees by about 30 percent. Income was burdened during the fourth quarter by shutdown and restructuring costs in the amount of MSEK 7.
Transmission Systems
markets transmission components, machine parts, hydraulic systemsand automation systems for the manufacturing industry and after-market. In-house manufacturing is conducted primarily in the case ofchains, gaskets and machine parts.
3 months to 12 months to
March 31, March 31,
2002 2001 2002 2001
Net revenues 212 232 869 729 Operating profit 7 13 40 53 - in percent of net revenues 3.2 5.4 4.5 7.3
Net revenues increased by 19 percent to MSEK 869 (729). Revenue added by newly acquired units amounted to MSEK 153. Operating income amounted to MSEK 40 (53).
The business area's combination of sales of components to producing customers and their aftermarket provided for an overall stable market situation during the year.
Niche production of transmission products and machine parts grew during the year and capacity utilization was good. Several new contracts were won in these areas.
The volume increase added by the acquisition of the FB Group had only a marginal impact on income for the year.
The lower operating income is explained largely by a negative result in a manufacturing unit with elements of contract production. Cost reductions implemented led to a situation where further negative impact was limited during the last quarter.
Demand was stable for the producing units during the fourth quarter, while component sales were slightly lower. Income was burdened during the fourth quarter by certain shutdown and restructuring costs in the amount of MSEK 4.
Component Systems develops and markets niche electromechanical and electronic component solutions for the manufacturing industry and the after-market.
PROFITABILITY
The return on capital employed was 15 percent during the financial year (38) and return on equity was 12 percent (36).
FINANCIAL POSITION CASH FLOW
The equity ratio stood at 41 percent at the end of the financial year (34). Shareholders' equity per share amounted to SEK 15.70 (14.90).
The Group's financial indebtedness amounted to MSEK 74 at year-end. This is an increase by MSEK 58 since the beginning of the year.
Cash flow from current operations amounted to MSEK 41. Excluding taxes paid of MSEK 50 attributable to last year's result, cash flow from current operations amounted to MSEK 91 (173). Investments in fixed assets amounted to MSEK 21. Disposals amounted to MSEK 25. Financing operations were affected by repurchase of own shares in an amount of MSEK 46.
DIVIDEND
The Board of Directors proposes a dividend of SEK 1.20 per share. The total dividend payment amounts to MSEK 32. The Group's dividend policy states that 30 to 50 percent of the Group's average income after taxes should be paid as dividends to the shareholders.
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