STOCKHOLM, Sweden, Oct. 21, 2004 (PRIMEZONE) --Opcon:
-The profit after financial items for the third quarter was SEK 1.7 million (-4.8 m).
-Sales turnover in the January-September period amounted to SEK 230.3 million (184.7 m), of which SEK 66.9 million (49.3 m) was in the third quarter.
-The loss after financial items in the January-September period was SEK 8.6 million (-14.6 m). In the third quarter the Group made a profit of SEK 1.7 million (-4.8 m).
-Results for the January-September period were affected by costs totalling SEK 9.2 million for the start-up of the production company in China, restructuring and rejects. In the third quarter these costs totalled SEK 1.5 million.
-A delivery agreement has been signed with a leading fuel cell developer.
-The loss after tax in the January-September period was SEK 7.7 million (-10.6 m). In the third quarter the Group made a profit after tax of SEK 0.6 million (-3.7 m).
-Earnings per share after tax in the January-September period were SEK -0.90 (-1.48). Earnings per share after tax in the third quarter were SEK 0.07 (-0.51).
-An integration and co-ordination project involving Group companies is being implemented to achieve increased efficiency and reduced costs.
THE GROUP
July-September
Sales turnover for the third quarter reached SEK 66.9 million, compared with SEK 49.3 million in the same period last year. The rise in turnover compared with last year was due to the addition of turnover from the two companies, Svenska Rotormaskiner AB and Lysholm Technologies AB, which were acquired at the end of 2003. The profit after financial items was SEK 1.7 million (-4.8 m). The profit after tax was SEK 0.6 million (-3.7 m), which translates into earnings per share of SEK 0.07 (-0.51). Earnings were affected by costs of SEK 1.5 million for starting up the production company in China. One of the company's main customers in the US for heat exchangers has started a phase of reconstruction (Chapter 11). The customer is a supplier to a major carmaker and owes Opcon around SEK 3.1 million. Based on information currently available the company expects to receive this sum.
Delayed deliveries of compressors to new OEM customers and to the US aftermarket contributed to the lower sales turnover and earnings during the third quarter.
A five-year delivery agreement with a leading fuel cell developer was signed during the period. This agreement has considerable significance for the continued focus on the development of air systems for fuel cell engines. The Electromechanics business area reported a clear improvement in profitability. Productivity increases and a better adapted cost structure helped to deliver positive results for the period. The start-up of the production company in China is proceeding according to plan and production is expected to start in the first quarter of 2005.
January-September
Sales turnover for the first nine months of 2004 amounted to SEK 230.3 million, compared with SEK 184.7 million last year. The loss after financial items was SEK 8.6 million (-14.6 m).
The loss after tax was SEK 7.7 million, compared with a loss of SEK 10.6 million last year, which represents earnings per share of SEK -0.90 (-1.48). Comparisons of sales turnover and earnings between 2003 and 2004 are affected by company acquisitions made at the end of 2003.
Financial position
The Group's liquid funds and short-term investments at the end of the period amounted to SEK 6.0 million (15.9 m) and interest-bearing liabilities amounted to SEK 90.8 million (62.0 m). The Group's equity/assets ratio was 40.9% (49.2%).
Opcon's shares The total number of shares at the end of the period was 8,578,707. At present there is no options scheme.
Investments/depreciation Investment in machinery and tools during the third quarter totalled SEK 1.9 million (2.3 m). In addition, costs of SEK 6.2 million (0.5 m) for development were capitalised. Depreciation during the third quarter amounted to SEK 5.6 million (4.3 m). Investment in fixed assets during the first nine months of 2004 reached SEK 4.5 million (11.1 m). In the same period development costs of SEK 8.9 million (3.6 m) were capitalised. Depreciation during the first nine months of 2004 amounted to SEK 20.0 million (15.9 m).
Employees At the end of the period the Group had 289 employees, of which 48 work for the newly acquired companies. The figure for last year was 276, which does not include staff at the newly acquired companies.
Parent company
The parent company reported sales turnover of SEK 4.2 million (4.0 m) in the third quarter. Sales primarily concern invoicing for internal administration services and building rents. The parent company's loss after financial items for the same period was SEK 1.2 million (-1.1 m). The parent company's sales turnover in the first nine months of 2004 totalled SEK 13.0 million (14.3 m) and the loss after financial items was SEK 5.3 million (-4.7 m). Investments totalled SEK 0.2 million in the first nine months of the year. At the end of the period liquid funds in the parent company totalled SEK 4.5 million (5.9 m).
Please contact the following for matters related to this statement: Sven G Oskarsson. CEO, Opcon AB. tel +46 532-611 30, mobile phone: +46 70 625 81 21 Goran Falkenstrom. CFO and Deputy CEO, Opcon AB. tel +46 532-611 22, mobile phone: +46 70 330 05 02.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2004/10/21/20041021BIT20040/wkr0001.pdf
The full report