STOCKHOLM, Sweden, April 26, 2002 (PRIMEZONE) -- Haldex Group January-March 2002:
Continued weak vehicle market * Earnings before tax 39 MSEK (60) * Operating profits 57 MSEK (76) * Order intake 1,777 MSEK (1,699) * Cash flow 28 MSEK (-62)
Business events
Among the more important business events during the 1st quarter, the following could be mentioned:
* Supply agreement with Saab Automobile regarding AWD systems. * Delivery start in a few years. Estimated annual value 150 MSEK. * Letter of intent from European truck manufacturer regarding supply of disc brakes. * Start 2005. Estimated annual value 100 MSEK. * Consummated acquisition of two product lines, including brake actuators and control valves, with applications in brake and suspension systems in heavy vehicles. * Manufacturing in Mexico and the U.S. respectively. Annual sales 500 MSEK. * Letter of intent from European car manufacturer regarding development of an electronically controlled differential brake. * Assignment from a European car manufacturer to participate in the development of the software architecture of next generation's AWD vehicles.
The Market
The vehicle industry on the main markets in North America and Europe continued severely depressed during the period.
In comparison with the 1st quarter 2001, the production of heavy trucks decreased by 10% in North America and by 20% in Europe. The production of heavy trailers in North America dropped 50%.
In comparison with the 4th quarter 2001, the truck production in North America increased by 2%, but declined by 10% in Europe. The North American trailer production fell 20%.
The market for industrial vehicles, such as construction vehicles and forklifts, weakened significantly. In North America, the production rate declined by 20% and 35% respectively. In Europe, the corresponding downturn was 8% and 2% respectively.
The development in the light vehicle segment (passenger cars and light trucks) was also weak. Albeit, the production rate in North America increased by 1%, but sales declined by 5%. In Europe, the production of cars decreased by 10%, whereas sales weakened by 4%.
The latest forecasts (J.D. Power/ACT, 1st Q 2002) of the development during the remainder of the year, indicate that the 1st quarter is likely to mark the bottom of the combined, international vehicle business cycle.
In North America, the number of manufactured heavy trucks for the total year is expected to increase by 7%, which implies that the average increase for the remaining three quarters should be some 15% compared to the 1st quarter. The 4th quarter, however, is forecast to fall back on the 1st quarter's level due to the forward buying that occurs presently. The new emission regulations that come to force by October, are expected to result in higher truck (engine) prices and higher fuel costs.
The production rate of heavy trailers in North America is expected to show a 29% downturn for the full year compared to previous year. This implies, however, that the average production rate during the next three quarters should be 35% higher than in the 1st. quarter.
Added together, heavy trucks and trailers are hence expected to show a production decline of 13% in North America compared to the previous year. In comparison with the current year's 1st. quarter, however, this forecast implies that the number of produced truck & trailer units in North America will on the average be some 20% higher in the next three quarters.
In Europe, the vehicle business cycle lags North America. The full year forecast of the European production of heavy trucks shows a decline of 14%. Different from North America, the European scenario implies that the next three quarters as an average is likely to show a somewhat (5%) lower production rate than the 1st quarter.
The above figures on the 1st quarter's production of heavy vehicles and the indicated forecasts regarding the next three quarters, can be summarized for the combined markets in North America and Europe as follows:
The production rate during the 1st quarter was 30% lower than in the 1st quarter 2001 and 10% lower than the 4th quarter 2001. The average production rate in the next three quarters is forecast to be 10% higher than the outcome in the 1st quarter.
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