SOLNA, Sweden, May 7, 2002 (PRIMEZONE) -- Scribona:
-- First quarter sales rose to MSEK 3,367 (2,353), an increase
that was mainly attributable to the acquisition of PC LAN ASA.
-- Operating income (EBIT) improved to MSEK 14 (10) and income
after tax was MSEK 7 (3).
-- Earnings per share rose to SEK 0.14 (0.09).
-- The PC market showed growth of around 10% in units sold thanks
to a dramatic increase in home PC sales to private consumers,
while market development was weak in other segments and
product areas.
President's comments
"Our first quarter results show that Scribona is on the right path and that both the cost-cutting program and stronger market position are contributing to the positive earnings trend. Our future ambition is to exceed the current profit level, but considering that the market has still not recovered and that the first quarter is traditionally weak, it is highly satisfying that all three business areas are showing profit."
The ongoing integration with the former PC LAN continued to progress well during the first quarter and is now focused on the final phase, creating a common value and strategic platform and completing the integration of our business systems in all Nordic markets.
THE MARKET
Scribona's main markets showed relatively weak demand in the first quarter of the year, with the exception of PC products for the consumer market, primarily consisting of home PC sales. Thanks to this, the Nordic PC market grew by around 10% in units sold. Furthermore, rising sales are being noted in the laptop segment. First quarter sales in the Swedish market included a high proportion of home PCs and thus increased by a full 25% in units sold. The corporate market has decreased significantly. These official figures for market development refer to the number of PC units sold. In a comparison with the sales trend, it should be noted that a significant price reduction has taken place during the past 12 months.
Market demand for document handling products fell by an estimated 5 to 10% compared with the corresponding period of last year.
After weak development during the preceding year, the market for IT infrastructure products revived at the end of the fourth quarter. However, the market has not continued this trend in the first quarter of 2002 and is assessed to have weakened somewhat compared with the preceding year.
DEVELOPMENT DURING JANUARY - MARCH 2002
Sales and income
Consolidated sales amounted to MSEK 3,367 (2,353), an increase of 43% that is mainly attributable to the acquisition of PC LAN. Sales and income from the acquired PC LAN ASA were not included in the first quarter of last year.
First quarter sales reached MSEK 582 (292) in the Solutions business area and MSEK 2,409 (1,628) in Distribution. Both business areas increased their sales substansially through the acquisition of PC LAN.
The Brand Alliance business area reported a further drop in sales, primarily due to the decrease for Toshiba's laptop computers, with only the Carl Lamm division noting a favorable sales trend. Total sales in the business area amounted to MSEK 480 (633).
Operating income totaled MSEK 14 (10). The improvement over the preceding year is mainly attributable to dramatic earnings growth in the Distribution business area compared with the weak first quarter of last year.
Net financial items amounted to MSEK -3 (-5).
Income before tax was MSEK 11 (5).
Cash flow and financial position
The Scribona Group's cash flow from operations during the first quarter of 2002 amounted to MSEK -116 (25). The Group's net investments reached MSEK 5 (17). Net financial capital at the end of the quarter totaled MSEK -190 (-240).
Employees
The number of employees on March 31 was 1,529 (1,326).
Key ratios
Earnings per share for the first quarter amounted to SEK 0.14 (0.09). Earnings per share over the past 12-month period, excluding items affecting comparability, totaled SEK -1.59 (SEK -1.82 for the full year 2001).
Equity per share at the end of the period was SEK 18.86 (24.33).
Over the past 12-month period, return on shareholders equity was -11.9% (-12.7% for the full year 2001). Excluding items affecting comparability, return on shareholders equity was -8.4% (-9.1% for the full year 2001).
Return on capital employed over the past 12-month period was -6.7% (- 7.2% for the full year 2001). Excluding items affecting comparability, return on capital employed was -3.1% (-3.4% for the full year 2001).
The equity ratio on March 31 was 26.2% (28.3%).
DEVELOPMENT BY BUSINESS AREA
Scribona Solutions
Investments in IT infrastructure fell short of expectations. Although the majority of market analysts agree that there is a strong underlying need for increased infrastructural capacity, the market weakened during the quarter. A more restrictive attitude towards investment in the telecom market is clearly having a negative impact on sales. Thanks to a more comprehensive product range after the acquisition of PC LAN, Scribona's sales rose sharply compared to the corresponding period of last year. Scribona has thus consolidated its leading position as a distributor of IT infrastructure products.
The business area's first quarter sales amounted to MSEK 582 (292), an increase of 99% that is mainly attributable to the added volume from PC LAN.
Operating income for the quarter totaled MSEK 6 (10).
Scribona Distribution
Market development for PC products was favored by a dramatic increase in home PC sales to private consumers. The number of PC units sold in the Nordic market rose by around 10%. In Sweden, the number of units sold increased by a full 25%. Scribona has participated in the home PC market to a limited extent but has nonetheless achieved sales growth on par with the total Nordic market, which shows that Scribona has increased its share of the important corporate market.
First quarter sales reached MSEK 2,409 (1,628), an increase of 48%. This sales growth is mainly explained by the added volume from PC LAN.
Operating income amounted to MSEK 12 (0). Scribona Distribution started the year on a high note, thanks to an improved market offering and intensive efforts to increase control of profit margins.
Scribona Brand Alliance
The Brand Alliance business area got off to a weaker start than anticipated and posted first quarter sales of MSEK 480 (633), down 24% on the preceding year. The Toshiba Digital Media and Toshiba Document Solutions divisions have shown a drop in sales, while sales in the Carl Lamm division are rising.
Operating income amounted to MSEK 6 (12). The decrease is attributable to a significantly lower volume, primarily in the Toshiba Digital Media division, while Carl Lamm reported somewhat higher income than in the preceding year.
Accounting principles
The same accounting and valuation principles have been applied as in the most recent annual report.
This interim report has been prepared in accordance with the Swedish Financial Accounting Standards Council's recommendation no. 20, Interim reports.
Financial calendar
Interim report for January-June 2002 20 August 2002 Interim report for January-September 2002 5 November 2002
This report has not been examined by the company's auditors.
Scribona AB Board of Directors
Facts about Scribona AB
Scribona is the Nordic market's leading provider of IT products andsolutions, offering customers cutting-edge product expertise, theindustry's leading e-commerce system, optimized product availability anda broad range of complementary services. Scribona's operations areorganized in three business areas:
-- Scribona Solutions -- value adding distribution of IT
infrastructure
-- Scribona Distribution - effective volume distribution of IT
products
-- Scribona Brand Alliance - exclusive agent for leading brand
suppliers
For additional information, please contact:
Lennart Svantesson, President & CEO
telephone: +46 8 734 35 76
Lars Palm, Executive Vice President
telephone +46 8 734 37 10
Anders Bley, Executive Vice President
telephone +46 8 734 35 55
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