UPPLANDS VASBY, Sweden, Nov. 14, 2002 (PRIMEZONE) -- KMT:
Third Nine Twelve months
quarter months Jan. 10-Sept 2
SEK M (unless other stated) 2002-2001 2002-2001 2002-2001
Order intake 283 258 771 942 1049 1219
Backlog 424 517 424 517 424 399
Net sales 154 254 743 949 1139 1345
Operating result -26 -5 -4 33 26 63
Result before taxes -28 -8 -11 24 16 51
Result after taxes -27 -6 -17 17 0 34
Result per share, SEK -5.41 -1.12 -3.51 3.42 -0,13 6.81
- Result before taxes SEK -11M (24). The loss is mainly due to the fall
in net sales of 200M compared to the same period 2001, whereof the fall
in quarter 3 was 100M. Further cost reductions of SEK 45M implemented
- with a full impact from the beginning of 2003
- costs for staff adjustments of 15M will be charged to the fourth quarter
- Breakthrough orders from new customers in the USA and China
- Lars Bergstrom takes over as president of KMT from January 1, 2003 when
Bjorn Kumlin retires
- Forecast for 2002: The result before taxes is calculated to -20 to -30M.
Bjorn Kumlin President and CEO commented: "The Group's operating result for the nine month period fell to SEK -4M (33) and the result before taxes to SEK -11M (24). A significant part of the fall is due to very low invoicing in the third quarter. This was caused by the continued weak machine investment market resulting from the trend in the automotive industry. Delivery times in the backlog have been focused on the fourth quarter and next year.
"The fact that the fall in profit stopped at SEK 35M, despite the fall in sales of more than SEK 200M, can be attributed to the implementation of efficiency measures and the improvement in the sales margins of several subsidiaries.
"The focus on the reduction of capital tied up is continuing to have positive effects. The cash flow for the nine months amounted to SEK 46M which contributed to continued high liquidity. The equity ratio increased to 40 per cent (38)."
"Some subsidiaries including Lidkoping improved their profit compared with the previous year but these improvements were not sufficient to compensate for a significant fall in profit for UVA.
"The Group's order intake has fallen significantly since September 11 last year. The majority of KMT's customers have overcapacity and are postponing investments whilst the general market situation is uncertain both in the USA and in Europe. However, the Chinese market remains strong and has contributed to the fact that KMT's investment with its own sales office in Beijing has made China one of the Group's most important markets.
"Order intake for the third quarter increased to SEK 283M (258). This is a gratifying improvement which is partly the result of breakthrough orders for UVA, Lidkoping and Ursviken to new important customers in the automotive industry in the USA and China.
"The additional cost reductions that were announced in the six month report have been implemented. The level of expenses will be reduced by approximately SEK 45M and the measures will make a full impact from the beginning of 2003. At the same time, the variable costs have been adapted to the past year's low order intake rate. In addition, the ongoing process aimed at increasing the sales margins continues."
PROSPECTS FOR THE FUTURE
In the six months interim report a forecast indicating "Profit before tax will be significantly lower than in the previous year (51)." The forecast has now been adjusted to profit before tax of -20 to -30M. The forecast includes costs for staff adjustments of 15M.
As a result of the previously announced measures, KMT has created good conditions for achieving a better result in 2003 even in a continuing weak market. We will be well-equipped to cope with the acceleration of industrial investment.
FUTURE INFORMATION
Year-end Report 2002 13 February 2003 Interim Report January-March 9 May 2003 Interim Report January-June 14 August 2003 Interim Report January-September 13 November 2003 For further information, please contact: Karolin Machine Tool AB Bjorn Kumlin, President tel: +46 08-594 211 50/+46 70-587 26 60 via e-mail: bjorn.kumlin@kmt.se This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2002/11/14/20021114BIT00630/wkr0001.doc The Full Report www.waymaker.net/bitonline/2002/11/14/20021114BIT00630/wkr0002.pdf The Full Report