UPPLANDS VASBY, Sweden, Feb. 14, 2002 (PRIMEZONE) -- KMT (Karoline Machine Tool AB):
-- Profit before taxes amounted to SEK 51M (81), including items
affecting comparability of SEK -4M (10)
-- The proposed dividend is SEK 3.50 (3.50) per share
-- Precision Grinding - best results so far. Continued weak
development for Sheet metal working
-- Increased investment in the service market
-- Bystronic - agreement signed for extended collaboration
Fourth Twelve
quarter months
Group summary
SEK M (unless otherwise stated) 2001 2000 2001 2000
Order intake 278 355 1 219 1 296
Backlog 399 523 399 523
Net sales 396 399 1 345 1 254
Operating profit excluding
items affecting
comparability 30 36 67 80
Items affecting comparability - -5 -4 10
Profit before taxes 27 29 51 81
Net profit after tax 17 22 34 58
Profit per share, SEK 3.40 4.40 6.81 11.63
Average number of shares (000) 5 000 5 000 5 000 5 000
President's Comments
The Group's operating profit, before items affecting comparability, fell to SEK 67M (80) for the full-year 2001. Profit before taxes fell to SEK 51M (81). The fall includes one-off income from 2000 relating to SPP and one-off costs for 2001 relating to the divestment of Nymek which together total SEK 14M. The fall in profit is also due to continued weak development within Sheet Metal Working and Tube Forming. In both cases, this is due to a weak market and related low order intake, low invoicing and price pressure.
In the fourth quarter, the Group's order intake fell significantly. The downturn in the economy, which was already underway, was aggravated by the terrorist attack in the USA in September. The solid backlog in Precision Grinding enabled a high level of invoicing as well as a continuing sound profit development in Precision Grinding's two units, UVA and LMT.
As stated in previous reports, a number of measures were decided upon and implemented.
The measures are summarised as follows:
Pullmax Ursviken will be split into two units, each with a specific focus. This is made possible through the newly signed agreement with Bystronic, Sheet Metal Working's strategically important collaboration partner, about extended and prolonged collaboration. As a part of the new collaboration agreement, Bystronic will participate in sales of Pullmax products in new markets.
Pullmax Ursviken has implemented price increases. In addition, the direct costs have been adapted to a lower volume and expenses have been reduced by more than SEK 40M, (-20 per cent), compared with the full year of 2000.
Similar price and cost measures have been implemented in Herber.
The effect of these measures will make a full impact from the beginning of the year in Sheet Metal Working and during quarter two in Tube Forming. During December, it was ascertained that the market for Sheet Metal Working and Tube Forming will be tougher than anticipated. A further adaptation of costs is, therefore, being implemented.
As a result of a strategy analysis in KMT the company will, among other issues, increase the investments in the service market business. Furthermore the company has carried out an evaluation of strategically interesting acquisitions.
Precision Grinding's continued positive profit development was very gratifying. UVA achieved its best results so far and LMT's successfully implemented restructuring activities have generated results. The acquisition of LMT has, so far, been well in line with KMT's expectations.
The previously announced move of KMT's head office was implemented during the fourth quarter. The head office is now located in Upplands Vasby, between Arlanda airport and Stockholm City.
Prospects for the Future
The uncertainty about industrial investments is expected to continue. As a consequence of the market situation, many of KMT's large customers are deferring their investment decisions. Due to the current uncertainty relating to future market trends, no forecast will be made for 2002.
Future Information
Interim Report January-March 24 April 2002 Interim Report January-June 14 August 2002 Interim Report January-September 14 November 2002 Year-end Report 2002 14 February 2003
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www.waymaker.net/bitonline/2002/02/14/20020214BIT00860/bit0001.doc The full year-end report www.waymaker.net/bitonline/2002/02/14/20020214BIT00860/bit0001.pdf The full year-end report