STOCKHOLM, Sweden, Jan. 23, 2002 (PRIMEZONE) -- OM:
Highlights
-- Revenue for the year totaled SEK 3,072 m (3,152)
-- Net income after financial items at SEK -469 m (743)
-- Earnings per share for the year were SEK -0.30 (8.61)
-- Fourth quarter income after financial items totaled
SEK 144 m (174)
-- Strong growth rate continues in Division Technology
-- SEK 481 m in non-recurring expenses
-- Jiway restructuring complete
SIGNIFICANT EVENTS WITHIN THE GROUP
A year of weak markets and restructuring
For OM, 2001 was characterized by continued growth within the technology operations, heavy non-recurring expenses related to the restructuring of Jiway as well as the expense reduction program. OM was affected early on in the recession and market conditions in many of the markets on which OM operates became weaker during the year. Developments were mixed within OM's exchange operations; equity trading turnover fell at the same time as there was an increase in the number of derivative contracts traded. However, throughout the year OM continued to gain market shares for both its technology as well as its exchange operations.
Earnings development in 2001
Group revenue fell by 3 percent during the year to SEK 3,072 m (3,152 in 2000). Excluding gains from the sale of shares in Orc Software of SEK 95 m (250), group revenue increased however by 3 percent. Revenue from the technology operations rose sharply during the year. Trading revenue from OM's exchange operations fell, largely as a result of lower market values and fee reductions on Stockholmsborsen.
OM's operating income 2001 totaled SEK -453 m (703). Excluding items affecting comparability operating income totaled SEK 28 m (698). Including restructuring costs, Jiway has affected the operating result with SEK -832 m (-282) during the year.
The increase in group expenses during the year to SEK 3,525 m (2,449) was primarily due to the continued operational growth within Division Technology as well as the items affecting comparability. These items totaled SEK -481 m (5) of which SEK 408 m was attributable to the restructuring of Jiway and SEK 73 m related to expenses incurred by the expense reduction program initiated by OM during the summer. The expense reduction program was estimated to result in a decrease in OM's annual operating expenses of at least SEK 150 m (calculation based on operating levels during the first quarter 2001), with the full effect expected during the first quarter 2002. Expensed investments in Research and Development (R&D) amounted to SEK 289 m (287) for the year. The restructuring of Jiway and the effects of the group's cost-cutting program led to a reduction in group expenses during the fourth quarter of the year.
Quarterly Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total Total Total earnings 2001 2000 1999 SEK m Revenue 785 806 648 833 3,072 3,152 1,954 Operating -770 -856 -1,223 -676 -3,525 -2,449 -1,431 expenses Operating 15 -50 -575 157 -453 703 523 income Income after 25 -61 -577 144 -469 743 603 Financial items Income after 61 0 -193 107 -25 730 444 tax Earnings per 0.72 0.00 -2.28 1.26 -0.30 8.61 5.23 share
Financial items totaled SEK -16 (40), the change attributable to an increased level of borrowing. The year's tax revenue, totaling SEK 233 m (-127), was primarily due to positive taxation effects from the restructuring of Jiway. Including restructuring expenses, the total impact of Jiway on the year's income after tax was SEK -348 m. The year's income after tax was SEK -25 m (730).
Please find enclosed OM AB's Financial Statement for 2001. It is also available on www.om.com.
To view the full text and financial tables, please click on the following link: http://www.waymaker.net/bitonline/2002/01/23/20020123BIT00740/bit0002.pdf
This information was brought to you by Waymaker http://www.waymaker.net