VARNAMO, Sweden, Jan. 22, 2003 (PRIMEZONE) -- Finnveden's previously forecast earnings level for the second half of the year will not be attained. Concurrently, the book value of the operations within Other companies is being written down.
The most recent interim report stated that based on the currently known market conditions and the effects of the implemented action programs, it is assessed that Finnveden's earnings after net financial items, excluding items affecting comparability, will be positive for the second half of the year.
A preliminary closing of the consolidated accounts for 2002 shows net sale in the fourth quarter at the same level as in the year-earlier period and earnings after net financial items, excluding items affecting comparability, that is slightly negative.
Consequently, the forecast earnings level for the second half of the year will not be achieved. However, earnings after net financial items, excluding items affecting comparability, for full-year 2002 will be positive.
"After a strong start in the fourth quarter, the end of the year was weaker than anticipated. A major reason is that our customers chose to request delivery of lower volumes than estimated in conjunction with the Christmas holidays," said Tommy Boork, CEO of Finnveden.
Recent discussions regarding divestment of the operations within Other companies indicated that the market value compared with the book value required a further write-down requirement of about SEK 40 M. This amount will be charged against earnings in the fourth quarter of 2002.
Finnveden will release its year-end report for 2002 on February 4.
Finnveden AB (publ) Tommy Boork, CEO +46 70 511 21 13
Finnveden is an international engineering group, with strong market positions in the automotive industry. Products include fasteners, engine components and sheet-metal components. Finnveden is listed on Stockholmsborsen (Stockholm Exchange) and has annual sales of about SEK 4.5 billion, with 3,500 employees. Additional information is available on Finnveden's website: www.finnveden.se
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