STOCKHOLM, Sweden, April 14, 2004 (PRIMEZONE) -- Excerpts from the speech of the President and CEO Claes Warnander:
From the latest peak year 1999, the downturn in the current business cycle has been a prolonged one, lasting over the three years from 2001 -- 2003. But the automotive market -- especially heavy vehicles -- now shows signs of a cyclical upturn.
Haldex has further strengthened its market positions through a number of important new businesses, e.g. disc brakes for trucks; four-wheel-drive system to both existing and new car manufacturers; fuel pumps for diesel engines.
Haldex has a number of important ongoing product development projects, e.g. ABS/EBS systems for trucks, new disc brakes concepts for trucks; new technology for diesel engines to meet new environmental regulations.
Measures in order to improve the cost structure are ongoing and follow plans: outsourcing of all machining operations in the Heidelberg production plant; establish a production unit in Hungary; shut down of the Blackburn production plant; relocate some production from USA to Mexico.
Sales and profitability for 2003 were negatively affected by the weakened US dollar. Despite a sales decrease of 6 % to 6,036 MSEK, the earnings before tax increased with 7 % to 120 MSEK. Excluding one-time items, earnings before tax increased by 16 % to 177 MSEK.
The business year 2004 will show a beginning of cyclical upturn in the vehicle industry and contribute to increased sales, earnings and profitability. At the present dollar rate against the Swedish krona, there will be a negative impact on sales and earnings expressed in Swedish kronor and as compared to 2003. The group's sales are therefore expected to show a moderate increase, while earnings and profitability should show more pronounced improvement.
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http://www.waymaker.net/bitonline/2004/04/14/20040414BIT20980/wkr0006 .pdf