STOCKHOLM ,Sweden, Jan. 22, 2002 (PRIMEZONE) --
-- The Group's net sales improved by 23 percent to SEK 1 072 m (874) -- Profit before tax increased by 86 per cent to SEK 82 m (44) -- Proposed dividend SEK 1.55 (1.40) per share
Sales and Profit
The Group's net sales increased in 2001 to SEK 1 072 m (874), an increase of 23 percent compared with last year. Adjusted for currency effects the growth rate was 19 percent.
Operating profit for the year was SEK 83 (48) m and the profit before tax was SEK 82 m (44). The profit margin was 8 (5) percent.
The weakening of the Swedish Krona towards HL Display's export currencies after hedging, affected the operating year-end profit positive by SEK 14 m. This is the isolated, positive effect on earnings of the weakening of the SEK against the export currencies since January 1, 2001. That is, without taking into account the management decisions, for example pricing or purchasing, that might have been influenced by the development of the exchange ratios. The effect arose in principal as a consequence of the weakened Swedish Krona towards the Euro.
HL Display has hedged a part of the expected inflow of Euro. The total contract, with due date in January 2003, amounted at period end to Euro 29 m.
The price of PVC, the group's most important raw material, has decreased during 2001 compared to the record levels of 2000. From a historical perspective, the average price in 2001 can be considered as normal.
In comparison with last year should be considered that HL Display in 2000 had received a refund of SEK 4.5 m from the insurance company Alecta (SPP).
The Year In Brief
For the first time in HL Display's history, sales exceeded one billion SEK. HL Display is the leading supplier of in-store communication and merchandising in Europe.
The trends in the retail market, with increased internationalization and consolidation through mergers, have continued. During the year the work to adapt HL Display's organization to meet this development has given positive results, and the process is ongoing in the same direction.
The product offering has been further developed, above all within different merchandising category solutions.
The production in the Swedish plants has been restructured to achieve shorter lead-times, higher service levels and improved profitability.
Acquisitions And New Establishments
During 2001, HL Display has acquired an injection moulding plant in Karlskoga from Mikron Technologies. New sales companies have been established in Slovenia and Slovakia.
Investments
Net investments in fixed assets during the year amounted to SEK 48 (58) m. Depreciation according to plan totaled SEK 47 (40) m.
Financial position
Liquid funds increased during the year as a result of improved cash flow and increased loans. Liquid funds amounted to SEK 65 m (32) as at December 31, 2001. The equity/assets ratio was 45 percent compared to 48 percent at year-end 2000.
At an extraordinary general meeting, held in November, a decision was made to issue warrants and offer them to 17 senior managers of HL Display. If all the warrants will be used, the number of shares will increase by 49 200, corresponding to 0.6 percent of the share capital. The program will be due in February 2006.
Personnel
The average number of employees was 855 (773) and 892 (805) at end of the period.
Dividend, AGM and Annual Report
The Board proposes a dividend for 2001 of SEK 1.55 (1.40) per share. The Annual General Meeting will be held the of March 18 at 4 p.m. at Naringslivets Hus, Storgatan 19, Stockholm. The annual report for 2001 will be distributed during week 8.
Outlook for 2002
The long-term target for growth and profitability remains.
HL Display should increase sales by at least 20 percent per year on average over a business cycle, with an average net margin of between 10 and 15 percent. The Board foresee a continuing favourable development for the present year.
The full-text article with tables can be found at the following link: http://reports.huginonline.com/845736/98465.pdf