AB Ångpanneföreningen (publ) Summary of Annual Report 2002
* Group loss before tax of SEK 151 million (the corresponding figure for 2001 was a profit of SEK 88 million)
* This result is charged with items affecting comparability totalling SEK 110 million.
* More efficient, client-oriented organisation
* The Board proposes a shareholder's dividend for 2002 of SEK 2.00 per share (2001: SEK 5.00 + SEK 8.00 per share)
Excluding items affecting comparability the operating loss for the fourth quarter of 2002 amounted to SEK 12 million (compared with a fourth-quarter loss of SEK 1 million in 2001). Cash flow for the fourth quarter was positive.
2002 witnessed the first stages in an extensive restructuring programme affecting all aspects of the ÅF Group's business operations. As a consequence of this, a total of around 250 will be made redundant or take early retirement. The short-term objective is to restore the profitability of the ÅF Group during the course of 2003.
For the past twelve months as a whole, capacity utilisation (measured as the proportion of time charged to clients relative to the total time that all employees spend at work) was 66 (70) percent. The figure for the fourth quarter was 66 (68) percent.
The Group reports a loss for 2002 after net financial items of SEK 40 million (compared to a profit of SEK 76 million for the preceding year). In addition, the final result has been charged with items affecting comparability (costs arising from the Group's restructuring programme) totalling SEK 85 million and a write-down in goodwill of SEK 25 million. In all, the pre-tax loss amounts to SEK 150 million. (In 2001 the ÅF Group reported a pre-tax profit of SEK 88 million.)
This equates to a negative profit margin of - 7.9 percent and a loss per share of SEK 22.18. The corresponding figures for 2001 were a profit margin of 4.5 percent and earnings per share of SEK 9.91.
Net sales declined 2 percent to SEK 1,916 (1,963) million. The total number of co-workers, excluding those in associated companies, calculated as the number of full-time equivalents for the year was 2,309 (2,167). If employees in associated companies are included, this figure rises to 2,607 (2,470). Of this total 413 (433) employees are employed outside Sweden.
Net worth, calculated as shareholders' equity with the addition of 80 percent of the surplus value of property held by the Group, amounted at the year-end 2002 to an equivalent of SEK 76 (118) per share.
The number of shareholders at the end of 2002 was 4,427 (4,000).
Prospects for 2003
The weak demand that has characterised 2002 is expected to endure for most of 2003. The Board of Directors believes that demand for services will be sluggish at the start of the year, but that the corporate restructuring programme will begin to have a positive impact on earnings from the second quarter onwards. Consequently, as a result of cost-cutting measures and a new, more efficient organisation, the ÅF Group's profitability should improve during 2003.
Accounting and valuation principles
The principles and calculation methods used in this financial report remain unchanged from those used in the ÅF Group's most recent annual report.
The Annual General Meeting of Shareholders will take place at 17.00 (5.00 p.m.) on 7 May 2003 at the ÅF Group's head office (Fleminggatan 7, Stockholm).
The Group's interim report for the first quarter of 2003 will be published on 7 May 2003.
We expect to be able to publish the ÅF Group's Annual Report for 2002 on 23 April 2003. The report, which is available in Swedish and English, may be ordered by phoning +46 (0)8-657 10 00 or by sending an e-mail request to email@example.com
Stockholm, Sweden - 18 February 2003AB ÅNGPANNEFÖRENINGEN
The Board of Directors
The report is available in Swedish and English versions.
The full report including tables can be downloaded from the enclosed link.