FAGERSTA, Sweden, May 6, 2002 (PRIMEZONE) -- Seco Tools: in his address to shareholders at the Annual General Meeting of Seco Tools AB today, President and CEO, Lars Renstrom talked about the importance of events during 2001 and development during the first quarter of 2002. The sales decline of 7 percent in 2002 is due mainly to declining demand in Europe, in parallel with continued weak market conditions in the U.S. and Japan.
He also presented a description of activities carried out in 2001 to generate stronger growth, including both company acquisitions and investments in product development. Through the acquisition of Jabro Tools in the Netherlands, the product range has been complemented by the addition of solid carbide end mills, which further strengthens Seco's position as a full-line supplier of tools, with a particularly strong position in the growth area, high-speed machining. Continuous launches of new products will be extremely important in Seco's efforts to achieve its goals for business growth. At the Annual General Meeting, Kurt Nordlund, technical director, presented the new Nano Turbo family of milling products, which now comprises the smallest milling cutter on the market.
Production of special tools in China will be started to support continued rapid growth in the Chinese market. Lars Renstrom said that new products and continued market establishments are priority elements in Seco's strategy, and the company is now making various preparations for the eventual economic recovery that will enhance the Group's potential to capture new market shares in the future.
Shareholders at the Meeting approved the Board's proposal for a dividend on operations in 2001 of SEK 14.00 per share, amounting to SEK 404 M (ordinary dividend of SEK 13.00 per share in 2000, plus extra dividend of SEK 7.00 per share, amounting to a total of SEK 577 M). The record date for entitlement to dividends is May 10, and dividends are expected to be sent to shareholders on May 15, 2002.
At the Meeting Gunnar Bjorklund, Stefan Erneholm, Hans Harvig and Lars Renstrom were re-elected for a new term. The following persons were elected as new Board members at the Meeting: Jan-Erik Forsgren, Magnus Brandeskar, Tom Erixon and Rune Nyberg. Jan-Erik Forsgren served as President of Seco Tools from 1986 to 1999. Magnus Brandeskar is Legal Advisor, Tom Erixon is Group Vice President Business Development and IT, CIO, and Rune Nyberg is Group Vice President Human Resources, all in Sandvik AB.
Former Board members Anders Narvinger, Peter Larson, Bo Severin and Peter Lundh had declined re-election. Narvinger, Larson and Severin have been Board members of Seco Tools since 2001 and Lundh since 1994.
At the Annual General Meeting in 2000, Authorized Public Accountants Jan- Olof Lindberg and Bernhard Ohrn were appointed as the Company's auditors for a four-year period, with Authorized Public Accountants Robert Barnden and Owe Wallinder as deputy auditors. None of these persons had requested to be relieved of his duties.
Gunnar Bjorklund was re-elected as Chairman of the Board at the statutory Board meeting immediately after the Annual General Meeting.
Fagersta, May 6, 2002
SECO TOOLS AB; (publ)
BOARD OF DIRECTORS
Previously published financial information is available under "Investor Relations" at Seco Tools' website (www.secotools.se)
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