STOCKHOLM, Sweden, Feb. 6, 2002 (PRIMEZONE) -- PartnerTech, year-end report 2001:
-- Net sales SEK 1,126.8 million (1,188.5).
-- An operating result of SEK -34.3 million (113.6) after financial
items, including items affecting comparability, was reported.
Excluding items affecting comparability, the operating result
after financial items amounted to SEK -19.3 million (89.4).
-- Earnings per share after full tax, including items affecting
comparability, were SEK -2.34 (10.65). Excluding items affecting
comparability, earnings per share after full tax were
SEK -1.39 (8.34).
-- The equity/assets ratio increased to 42.5% (32.4).
-- Vellinge Electronics, one of Sweden's leading contract
manufacturers, was acquired on December 7. The acquisition makes
PartnerTech the market leader in Sweden within the IT/mechatronics
segment.
Market Trends
Year 2001 brought major changes for PartnerTech's market segment, telecom infrastructure. After a relatively strong first quarter, volumes declined considerably. The generation shift from second-generation to third-generation mobile telecommunications systems and the rapid transition from TDMA to GSM technology in the US were the main reasons for the lower volumes. However, there are strong indications that the slowdown discontinued during the fourth quarter.
While demand was stable throughout the year in the IT/mechatronics segment, there were substantial individual variations within the segment. The factors behind the variations included the prevailing business climate and availability of capital for growth companies.
The medical equipment segment experienced high and stable demand during the year. A large number of projects were undertaken and growth was positive.
Fourth quarter 2001
Net sales for the fourth quarter amounted to SEK 315.6 million (335.7), a decline of 6% compared with the year-earlier period. The decline for comparable units was 14%. The decline was entirely attributable to the telecom infrastructure segment, within which volumes declined by SEK 57 million, or 41%, during the fourth quarter, compared with the year- earlier period.
Net sales
2001 2000
% share in Q4 % share in
Q4
Telecom 26% 42%
infrastructure
IT/mechatronics 54% 47%
Medical equipment 20% 11%
Operating profit, excluding items affecting comparability, amounted to SEK 0.5 million (18.1). The improvement compared with the two preceding quarters was primarily attributable to the easing of the decline in volumes within the telecom infrastructure segment and to the fact that the action program, which was largely completed before the close of the period, had begun to take effect.
Operating profit, including items affecting comparability, amounted to SEK 7.3 million (19.9). Items affecting comparability during the fourth quarter, in an amount of SEK 6.8 million (1.8), comprised a positive recalculation, amounting to SEK 1.2 million, of a pension fund repayment from Alecta/SPP, and a reduction of the costs for the action program presented during the second quarter. The reason for the cost reduction was that it proved possible to conduct a number of activities at a lower cost than was estimated.
During the final month of the fourth quarter, Vellinge Electronics was consolidated in the Group's income statement and balance sheet.
January-December 2001
Net sales, earnings and profitability
Net sales during the year amounted to SEK 1,126.8 million (1,188.5), a 5% decrease compared with the preceding year. For comparable units, the decline in volumes was 14%. The overall decline for the Group occurred exclusively within the telecom infrastructure segment. Growth in the IT/mechatronics and medical equipment segments offset more than 50% of the effect of the decline in the telecom infrastructure segment.
Net sales
2001 2000
% share % share
Telecom infrastructure 34% 44%
IT/mechatronics 50% 46%
Medical equipment 16% 10%
The marked slowdown in the telecom infrastructure segment, which occurred mainly during the second and third quarters, combined with the altered sales mix, had a negative impact on the operating margin compared with the preceding year. Excluding items affecting comparability, the operating margin amounted to SEK -10,7 million (97.6).
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