STOCKHOLM, Sweden, Aug. 22, 2002 (PRIMEZONE) -- Lundberg:
-- Profit after full tax amounted to SEK 483 m. (1,943), which corresponds to SEK 7.78 (30.42) per share. Profit for the first half of 2001 included an extraordinary dividend of SEK 1,307 m. from Holmen.
-- On June 30, 2002, net asset value per share amounted to SEK 263 (Dec 31, 2001: 247) and SEK 233 (Dec 31, 2001: 220) after deferred tax. The corresponding values on August 21, 2002 were SEK 246 and SEK 221, respectively.
L E Lundbergforetagen AB (publ) Phone: +46-8-463 06 00/+46-11-21 65 00 Fax: +46-8-611 66 09/+46-11-21 65 65 lundbergs@lundbergs.se www.lundbergs.se
Company registration number: 556056-8817 Registered Head Office: Stockholm
The accounts are made up in accordance with the Swedish Financial Accounting Standards Council's recommendations. No accounting principles that have an effect on this report have been changed from the principles that were applied in the last annual report. This interim report has been prepared in accordance with the Swedish Financial Accounting Standards Council's Recommendation RR20 (Interim Reporting). Unless indicated otherwise, the figures presented below within parentheses pertain to comparative results for the corresponding period in the preceding year.
SALES AND PROFIT
The Group's net sales amounted to SEK 1,091 m. (2,330). Profit after financial items amounted to SEK 521 m. (1,852). Profit after full tax was SEK 483 m. (1,943), which corresponds to SEK 7.78 (30.42) per share. Sales and profit for the first half of 2001 were affected by an extraordinary dividend of SEK 1,307 m. from Holmen.
REAL ESTATE
Interim period Operating profit for the Real Estate business area amounted to SEK 184 m. (181).
Rental revenues from housing and commercial premises, which increased by 5.2% to a total of SEK 407 m. (387), developed well, with housing revenues rising by 2.8% to SEK 197 m. and revenues from commercial premises, etc. rising by 7.5% to SEK 210 m. Housing accounted for 48% of total rental revenues and commercial premises, etc. for 52%.
The average vacancy rate for the period was 2.4% (average 2001: 2.3), of which the vacancy rate for housing was 0.6% (average 2001: 0.9) and the vacancy rate for commercial premises was 4.0% (average 2001: 3.6). The overall vacancy rate in August 2002 was 2.9%, whereby the rate for housing was 0.8% and that for commercial premises was 4.9%.
Property costs rose to SEK 212 m. (197). The increase was due to higher maintenance and tenant-oriented property improvement costs, which totaled SEK 70 m. (50). Other property costs were at the same level as the first half of the preceding year.
The operating net amounted to SEK 232 m. (231).
A net amount of SEK 12 m. (10) was invested in wholly and partly owned properties during the period.
The Group's completed properties, which have a book value of SEK 2,638 m. (2,674), generated an annualized yield (operating net in relation to book value) of 17.5% (17.2). The book value of properties held for future development was SEK 125 m. (141).
SEK m. Floor Book Operating space Rental Operating value, net thousand revenues net June 30, net as a m(2) 2002 % of book value (annualized yield) Completed properties 1,010 405 231 2,638 17.5 Properties held for 11 2 1 125 future development TOTAL 1,021 407 232 2,763
Current report period April - June 2002 Rental revenues increased by 5.7% to SEK 204 m. (193), with housing revenues rising by 2.5% to SEK 98 m. and revenues from commercial premises, etc. rising by 8.8% to SEK 106 m.
Property costs rose by SEK 8 m. to SEK 98 m. (90). The increase was due to higher maintenance and tenant-oriented property improvement costs, which totaled SEK 34 m. (25).
The average vacancy rate during the second quarter was 2.3% (2.7), of which the vacancy rate for housing was 0.6% (1.0) and the rate for commercial premises was 3.8% (4.2).
Results per quarter Quarter I II III IV Full year Rental revenues etc, SEK m. 2002 203 204 2001 194 193 197 197 781 2000 182 182 186 190 740 Operating net, SEK m. 2002 108 125 2001 110 122 130 115 477 2000 83 86 93 89 351 Vacancy rate, % 2002 2.5 2.3 2001 2.7 2.7 1.9 2.1 2.3 2000 4.6 4.2 3.4 3.1 3.9
INVEST
The Invest business area reported operating profit of SEK 397 m. (1,721) for the first half of the year and of SEK 99 m. (140) for the second quarter.
Profit includes dividends of SEK 423 m. from major shareholdings in publicly traded companies (1,716, including extraordinary dividend of 1,307). During the second quarter, dividends totaling SEK 112 m. (133) were received from Cardo and NCC.
The subsidiary L E Lundberg Kapitalforvaltning, whose results are reported in Invest's earnings, reported a loss of SEK 36 m. (0). After financial items, the loss amounted to SEK 38 m. (0). On June 30, 2002, gross exposure to shares and interest-bearing paper amounted to approximately SEK 125 m. (Dec 31, 2001: 203).
Major shareholdings in publicly traded companies The tables below show the voting rights, percentage shareholding, book value and market value of the Group's shares. The percentage shareholding and voting rights in NCC have been affected by NCC's repurchase of its own shares and restamping of shares.
August 21, 2002 June 30, 2002 December 31, 2001 Voting Share- Voting Share- Voting Share- rights holding rights holding rights holding Cardo 33.5 33.5 33.5 33.5 33.5 33.5 Holmen 52.0 27.2 52.0 27.2 52.0 27.2 Hufvudstaden 87.6 44.2 87.6 44.2 87.6 44.2 NCC 16.9 13.6 16.9 13.6 16.7 13.3 August 21, June 30, December 2002 2002 31, 2001 Book Market Book Market Book Market SEK m. value value(1) value value(1) value value(1) Cardo 1,890 1,989 1,890 2,085 1,890 1,589 Holmen 2,547 4,458 2,547 5,376 2,547 5,153 Hufvudstaden 2,828 2,604 2,828 2,663 2,828 2,485 NCC 1,076 857 1,076 907 1,076 967 TOTAL 8,341 9,908 8,341 11,031 8,341 10,194 (1) Publicly traded assets are entered at current market price or at the exercise price for written options in the event that the latter price is lower.
Portfolio Investments In addition to the major shareholdings in publicly traded companies, the Group owned publicly traded shares with a book value on June 30, 2002 of SEK 462 m. (Dec 31, 2001: 305) and a market value of SEK 495 m. (Dec 31, 2001: 323). On August 21, 2002, the book and market values were SEK 675 m. and SEK 648 m., respectively.
Other shareholdings
The item Other shareholdings includes shares in the unlisted associated company Stadium in an amount of SEK 250 m. (Dec 31, 2001: 250).
Financial items
Financial items amounted to an expense of SEK 57 m. (expense: 46), of which net interest items accounted for an expense of SEK 28 m. (expense: 46) and write-downs of shares for SEK 30 m (0). Net interest items during the second quarter amounted to an expense of SEK 18 m. (expense: 16).
Financial position
Liquid assets (excluding credit facilities) decreased by SEK 106 m. to SEK 4 m. (Dec 31, 2001: 110). Interest-bearing liabilities decreased to SEK 1,744 m. (Dec 31, 2001: 2,023). On June 30, 2002 the average period of fixed interest was approximately 2 month and the average interest rate was 4.5% (4.8).
The Group's interest-bearing net debt decreased to approximately SEK 1,700 m. (Dec 31, 2001: 1,800) and the debt/equity ratio to 0.18 (Dec 31, 2001: 0.19). The Group's reported shareholders' equity on June 30, 2002 was SEK 9,561 m. (Dec 31, 2001: 9,447). The equity/assets ratio rose to 80% (Dec 31, 2001: 78).
Net asset value
On June 30, 2002, net asset value 1) per share amounted to SEK 263 (Dec 31, 2001: 247) and SEK 233 (Dec 31, 2001: 220) after a deduction for deferred tax 2). Reported shareholders' equity accounted for SEK 154 (Dec 31, 2001: 152) of net asset value per share.
On August 21, 2002, estimated net asset value per share was SEK 246 and SEK 221 after deferred tax.
June 30, 2002 December 31, 2001 SEK m. SEK/share SEK m. SEK/share Real Estate 6,853 110 6,844 110 Invest Cardo 2,085 34 1,589 26 Holmen 5,376 87 5,153 83 Hufvudstaden 2,663 43 2,485 40 NCC 907 14 967 15 Stadium 250 4 250 4 Other publicly traded shares 495 8 323 5 Other assets, provisions and liabilities -2,280 -37 -2,280 -36 liabilities NET ASSET VALUE BEFORE 16,349 263 15,331 247 DEFERRED TAX (1) Deferred tax (2) -1,911 -30 -1,666 -27 NET ASSET VALUE AFTER DEFERRED 14,438 233 13,665 220 TAX Market value 11,422 184 9,819 158 Price/NAV, % 79 72 (1) Net asset value has been computed as follows: Publicly traded assets are entered at current market price or at the exercise price for written options in the event that the latter price is lower. Properties are entered at the estimated market value on December 31, 2001, based onindependent and internal valuations. The only corrections made during the first six months of 2002 have been for investments and sales. Other assets, pro- visions and liabilities are entered at book value on December 31, 2001 and June 30, 2002, respectively. (2) Deferred tax has been computed on the basis of the difference between the book and market value of properties and publicly traded shares.
Repurchase of own shares
The Annual General Meeting on April 4, 2002 approved the cancellation of the 6,146,900 Series B shares that had previously been repurchased. The meeting also renewed the Board's authorization to repurchase up to 10% of the total number of shares in Lundbergs during the period up to the next Annual General Meeting 2003. The Board has decided to exercise the authorization received from the Annual General Meeting, which will permit the repurchase of up to 6,214,000 shares. As at June 30, 2002, 70,400 shares had been repurchased for a total of SEK 12 m., or an average of SEK 178 per share. The repurchased shares correspond to 0.11% of the share capital and 0.03% of the voting rights. No additional shares were repurchased during the period up to and including August 22, 2002.
The average number of shares outstanding during the first half of 2002 was 62,100,226. The number of shares outstanding on June 30, 2002 was 62,075,083.
Parent Company
L E Lundbergforetagen AB (publ) reported net sales of SEK 370 m. (1,647). Reported profit after financial items amounted to SEK 320 m. (1,634).
Stockholm, August 22, 2002
FREDRIK LUNDBERG President
This interim report has not been subject to specific examination by the auditors of L E Lundbergforetagen AB (publ).
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