SOLNA, Sweden, Nov. 24, 2003 (PRIMEZONE) -- Altima, which will be spun off to NCC shareholders during December, expects to report operating profit of approximately SEK 75 million for 2003, compared with pro forma profit of SEK 171 million for 2002. These figures are taken from the prospectus that has been produced in connection with the spin-off of Altima and which will be distributed to NCC shareholders, commencing at the end of this week.
The reason for the weaker earnings is that the machinery rental market has been severely affected by sharply reduced volumes, due to a decrease in new construction activity. NCC's policy of focusing on core business and assigning priority to profitability ahead of volume has also contributed to the reduction in Altima's volume.
During 2003, Altima has implemented a rationalization program that will result in annual cost savings of SEK 45-50 million before taxes. It is estimated that SEK 20-25 million of these savings will affect earnings for 2003. The entire effect will be achieved during 2004.
"We have created an improved platform for 2004, in the form of increased efficiency and thus a reduction in costs. I believe we are well positioned in the market, not least because of our geographical range, with operations in the Nordic countries and in the growing markets in the Baltic States and St. Petersburg. We will strengthen our local position in an effort to reach out to new customer groups, by means of gradual expansion of the distribution network. We plan to expand using internally generated resources," says Altima President, Mikael Oberg, in the prospectus.
During January-September 2003, Altima's operating profit as an independent company outside the NCC Group amounted to SEK 50 million (year-earlier, pro forma: 119). For full-year 2003, operating profit of approximately SEK 75 million (2002, pro forma: 171) is expected. In NCC's interim report on the first nine months of 2003, operating profit of SEK 40 million (year-earlier: 109) was reported for Altima in its capacity as a subsidiary of NCC. The difference between Altima as an NCC subsidiary and as an independent company is the result of the allocation of assets in connection with the spin-off, which resulted in depreciation of these assets being charged against Altima's earnings.
After taxes, profit for January-September 2003 amounted to SEK 16 million (year-earlier, pro forma: 61). Sales totaled SEK 934 million (year-earlier, pro forma: 1,023). Despite the declining volumes, Altima showed a positive cash flow of SEK 97 million for the period (year- earlier, pro forma: 7).
On September 30, 2003, Altima had total assets of SEK 1,288 million and shareholders' equity of SEK 533 million.
A complete interim report for Altima as an independent company is included in the prospectus that is being sent to all NCC shareholders. For those who are not NCC shareholders, the prospectus is available via www.altimagroup.com, www.ncc.info and www.handelsbanken.se/aktuellaerbjudanden . It can also be ordered from Handelsbanken's bank offices in Sweden as of the end of the current week.
The final date for trading in NCC shares carrying rights to Altima shares is December 9. The record date has been set at December 12 and the first day for trading in Altima shares on Stockholmsborsen is December 16.
For further information, please contact: Annica Gerentz, Investor Relations Manager NCC Group +46 8 585 52204 or +46 70 398 42 09
All of NCC's press releases are available on www.ncc.info
NCC is one of the leading construction and property development companies in the Nordic region. NCC had in 2002 sales of SEK 45 billion, with 25,000 employees.
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