STOCKHOLM, Sweden, Aug. 05, 2004 (PRIMEZONE) -- Industrivarden's net asset value was SEK 33,413 M on August 3, 2004, an increase of SEK 3,343 M since the start of the year. Net asset value on June 30, 2004, was SEK 34,443 M (25,642).
- Net asset value per share was SEK 173 on August 3, 2004, an increase of SEK 17 per share since the start of the year. Including reinvested dividends the increase was SEK 23 per share. Net asset value per share on June 30, 2004, was SEK 178 (133). Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 16%. Earnings per share for the first six months of 2004 were SEK 6.46 (3.66).
- The total return for Industrivarden's stock on August 3, 2004, was 15% compared with 10% for the return index. During the last ten-year period the average annual total return was 4 percentage points higher than the return index. CEO's Message
The favorable economic trend is continuing, especially in the U.S. A positive trend can also be noted in Japan and Southeast Asia. The risk of overheating in the Chinese economy has led to efforts by the authorities to curb the strong development. The area that is lagging behind somewhat is Europe, where domestic consumer-driven demand has not gained momentum, particularly in Germany and France. However, there are now signs of a recovery in these countries as well. Most of the companies in which we have holdings have been able to benefit from the improved economic climate and are reporting strong earnings and positive future prospects.
Our stock and our net asset value have both outperformed the stock market in general, which is proof of the quality of our holdings. Naturally, Ericsson's performance is the most pleasing, since it shows that the company's efficiency enhancement programs have paid off. Ericsson also continues to strengthen its position as market leader in equipment for mobile networks, a market that has now returned to growth.
During the first half of the year we have purchased stocks for SEK 2.2 billion and sold for SEK 1.1 billion. Above all, we have strengthened our positions in Handelsbanken and Sandvik, where we have invested a total of SEK 1.1 billion thus far during the year. We have also increased our holdings in Munters and Ossur. This means that we are now the largest owner in Ossur, with 19% of the capital and voting rights. The company is showing strong performance, and its share price has risen 75% this year. Finally, it is gratifying to confirm that our derivative transactions and short trading are more than covering our management costs. During the first half of 2004 these costs fell by just over 5%, to SEK 40 M, and now account for 0.2% or our net asset value. Anders Nyren President and CEO
The full interim report is avaiable on Industrivardens web-page www.industrivarden.net.
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http://www.waymaker.net/bitonline/2004/08/05/20040805BIT20140/wkr0001.pdf
The full report