STOCKHOLM, Sweden, April 23, 2002 (PRIMEZONE) -- PartnerTech:
-- Net sales amounted to SEK 334.2 million (310.5).
-- A loss of SEK 24.2 million (profit: 1.8) after financial items
was reported.
-- The loss per share after full tax was SEK 1.63 (profit: 0.08).
-- Cash flow after investments was positive, amounting to SEK 58.7
million (neg: 19.5).
-- The equity/assets ratio rose to 42.0% (35.3).
Market remains cautious
Market trends
During the first quarter of 2002, volumes in the telecom infrastructure market segment remained virtually unchanged, compared with the latter part of 2001.
Volumes in the IT/mechatronics segment declined during the quarter, compared with the fourth quarter of 2001. The decline was due largely to reductions in inventories by many customers in a cautious market. After a weak start to the first quarter, some recovery in demand was noted in the medical technology market segment. Some of PartnerTech's major customers started the year with very weak demand, which was the main reason for sluggish trends early in the quarter.
Net sales, earnings and profitability
Net sales during the quarter amounted to SEK 334.2 million (310.5), an increase of 8% compared with the preceding year. As of December 1 the acquired company Vellinge Electronics AB is included in the figures. Volumes for comparable units declined by 26%. Volumes were lower in all business units, but primarily within telecom infrastructure. The segment was affected by a very sharp slowdown during the second quarter of 2001, which continued to characterize during 2001.
SEK M 2002 2002 2001 2001
sales % of sales sales % of
sales
Telecom infrastructure 69.4 21 % 136.9 44 %
IT/mechatronics 209.1 62 % 141.1 45 %
Medical equpiment 55.7 17 % 32.5 11 %
Total 334.2 100 % 310.5 100 %
Group's performance per quarter
SEK M Q1 00 Q2 00 Q3 00 Q 4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02
Net
sales 250.4 327.0 275.4 335.7 310.5 289.1 211.6 315.6 334.2
Oper-
ating 20.5 34.5 24.5 18.2 4.4 - 4.2 -11.3 0.5 -21.1
profit/
loss *
Oper- 8.2% 10.6% 8.9% 5.4% 1.4% -1.5% -5.3% 0.2% -6.3%
ating
margin*
* Excluding "items affecting comparability" (SEK 22.4 million in Q2 2000, SEK 1.8 million in Q4 2000, negative SEK 21.8 million in Q2 2001 and SEK 6.8 million in Q4 2001).
The tentative market situation during the first quarter, with lower volumes, was the single most important cause of the decline in operating result. The operating loss amounted to SEK 21.1 million (profit: 4.4). The shift in the product mix, compared with the preceding year, also had a negative effect on the operating result.
Work is continuing to further strengthen PartnerTech's competitiveness, through stronger focus on reduced costs and continued structural improvements for the future.
The integration of Vellinge Electronics was completed according to plan and is expected to gradually strengthen PartnerTech's competitiveness. The company's business model is also being further developed. The organizations of the business units are now being strengthened, which will enable the units to increase their "outsourcing business" per customer to a higher level. Positive effects have been noted within IT/mechatronics, among others, which shows a strong increase in its number development contracts. The production plants in Poland are now also able to increase their integration in the different customer-specific business models that have been created. These changes will strengthen the Group's future competitiveness and generate opportunities to capture larger and more complete-coverage contracts.
The Group's financial expense for the period amounted to SEK 3.1 million (expense:2.6).
The loss in the first quarter after financial items amounted to SEK 24.2 million (profit: 1.8). The loss includes goodwill amortization of SEK 1.9 million (1.2).
Financial position and liquidity
The Group's operating capital during the first quarter declined by SEK 77.4 million to SEK 591.9 million (431.1), compared with year-end 2001.
Working capital declined by SEK 54.7 million since year-end 2001, amounting to SEK 269.3 million (183.1) at the close of the period.
Net investments during the period amounted to a surplus of SEK 4.3 million (expenditure: 51.9). Of this amount, SEK 3.5 million related to sales of financial fixed assets. Business operations showed a positive cash flow of SEK 58.7 million (neg: 19.5) after investments, which was primarily attributable to the reduction in working capital.
The positive cash flow reduced the Group's net borrowing - interest-bearing liabilities less cash and equivalents - by SEK 56.6 million to SEK 196.2 million (151.5) at the close of the period.
Shareholders' equity declined during the period by SEK 20.9 million, amounting to SEK 395.7 million (279.6) at the end of March 2002.
The equity/assets ratio amounted to 42.0% (32.4) at the end of the period.
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