Interim Report April 1 - December 31, 2001

5 Feb, 2002 15:43 CET

Interim report for the period April 1 - December 31, 2001 (9 months)

Net revenues amounted to MSEK 1 793 (1 784).

Operating income, not including items affecting comparability, amounted
to MSEK 73 (149).

Operating income is being charged with current costs for structural
measures.

Cash flow from operations amounted to MSEK 74.

Continued weak market performance for operations depending on the
telecom and electronics sectors and capital investment goods.

Previously initiated action programs are now being implemented according
to plan and in certain units additional action has been taken. Overall
cost savings will amount to MSEK 40.

Stronger financial position despite repurchases of own shares equivalent
to just short of 5 percent of the capital.
3 months 9 months 12 months
ending ending ending
Dec. Dec. Dec. Dec. Dec. March
31, 31, 31, 31, 31, 31,
2001 2000 2001 2000 2001 2001
Net revenues 595 683 1 793 1 784 2 511 2 502
Operating income* 6 57 73 149 125 201
- in percent of net 1.0 8.4 4.1 8.3 5.0 8.0
revenues
Income after financial 6 56 70 146 118 194
items *
- in percent of net 1.0 8.3 3.9 8.2 4.7 7.8
revenues
Earnings per share, 0.10 1.47 1.68 3.78 2.92 5.02
SEK*
* Not including items affecting comparability of MSEK -3 during Q2 of
the current year and MSEK 13 during Q2 of the preceding year.

NET REVENUES AND RESULT

Nine months April - December 2001

Net revenues of the Addtech Group were at the same level during the
first nine months of the financial year as during the preceding year,
MSEK 1 793 (1 784). MSEK 255 thereof was business volume added by units
acquired during the preceding operating year.

Operating income not including items affecting comparability amounted to
MSEK 73 (149) and income after financial items amounted to MSEK 70
(146). Costs affecting comparability amounted to MSEK 3, attributable to
the listing of Addtech on the O-list of the Stockholm Stock Exchange. In
the preceding year there was revenue of MSEK 13 affecting comparability
in the form of SPP refunds.

Income after taxes amounted to MSEK 45 (115), or SEK 1.60 per share
(4.11). For the most recent 12-month period income after taxes was MSEK
79 and SEK 2.85 per share, respectively, which can be compared with MSEK
149 and SEK 5.36, respectively for the preceding operating year.

Third quarter 2001 (October - December)

Net revenues declined during the third quarter by 13 percent to MSEK 595
(683). The business volume added by newly acquired units was MSEK 63.

The market situation for units with business in the telecom and
electronic sectors continued to be weak and no improvement compared to
what was reported in the preceding quarterly report has been observed.
Demand for machinery and equipment of an investment character was very
weak during the period.

The month of December was marked by a generally weak market situation,
which had a further negative effect on the quarter when compared with
prior periods and the preceding year.

In order to counteract the effects of continued weakness in the business
outlook and to adapt the organization to a lower business volume, the
previously initiated action program will be carried out according to
plan. Further action has been taken in certain units. The effects of
action taken will be that the number of employees will be reduced by
about 100 from the level at the end of June of the current year when the
action program was initiated. This constitutes a decrease of 8 percent.

The operating result is charged for current costs of personnel
reductions and other structural measures. The overall effect of action
taken will be that aggregate costs will be reduced by approximately MSEK
40 on an annual basis (the previous estimate was about MSEK 30).

Operating income amounted to MSEK 6 (57). The earnings drop is explained
primarily by a negative reesult in Production Systems. In units acquired
during the preceding year, measures have been instituted to raise
earnings to a satisfactory level and in several of the other companies
measures to increase efficiency are being taken to adapt the
organization to the lower business volume.

Income after financial items dropped to MSEK 6 (56).

Net financial items amounted to MSEK 0 for the period
(-1).

BUSINESS AREAS
Income figures in the comments to the Group's business areas do not
include items affecting comparability.

Production Systems

provides systems solutions primarily for production processes in the
electronics, engineering and automotive industries.
3 months 9 months ending 12 months ending
ending
Dec. Dec. Dec. 31, Dec. 31, 2000 Dec. Dec. 31,
31, 31, 2001 31, 2001
2001 2000 2001
Net 131 229 452 578 679 805
revenues
Operatin
g income -16 20 -7 42 11 60
- in
percent -12.3 8.6 -1.6 7.1 1.7 7.5
of net
revenues


Net revenues declined by 22 percent to MSEK 452 (578). The business
volume added by newly acquired units amounted to MSEK 31. Operating
income declined to MSEK -7 (42).

Production Systems, where production equipment for the electronics and
telecom sectors make up a substantial proportion of operations, is the
unit of the Group most severely affected by the economic downturn. Lower
demand from the telecom industry is also due to a structural change,
which has created uncertainty in investment decisions among customers.
The business situation is considerably weaker than during the
corresponding period one year ago. During the third quarter, new orders
were at the same level as invoicing, however.

The negative result for the third quarter is due primarily to the fact
that the organization was dimensioned for a higher business volume. In
addition, certain project-oriented operations aimed at environmental
solutions had a considerable negative effect on earnings. Action has
been taken to minimize future negative effect on earnings. Action being
taken to offset the negative effects of a weak economic situation will
not have a noticeable effect on costs until during the fourth quarter of
the financial year.

Transmission Systems

markets transmission components, machine parts, hydraulic and automation
systems for the manufacturing industry and after-market. In-house
manufacturing is conducted primarily in the case of chains, gaskets and
machine parts.
3 months ending 9 months 12 months
ending ending
Dec. 31, Dec. Dec. Dec. Dec. Mar.
2001 31, 31, 31, 31, 31,
2000 2001 2000 2001 2001
Net revenues 220 186 657 497 889 729
Operating income
7 14 33 40 46 53
- in percent of
net revenues 2.9 7.5 5.0 8.1 5.1 7.3


Net revenues increased by 32 percent to MSEK 657 (497). The business
volume added by newly acquired units amounted to MSEK 153. After a weak
third quarter, operating income amounted to MSEK 33 (40). The lower
operating result is explained to a significant degree by a negative
result in a manufacturing unit with elements of contract production.

In-house production of chains, transmissions and machine elements
continues to show a positive development and good capacity utilization.

The market situation for sales of components to producing customers in
mechanical industry and aftermarket was marked by a good market
situation, even though a downturn was noted during the latter part of
the period.

Component Systems

develops and markets niche electro-mechanical and electronic component
solutions for the manufacturing industry and the after-market.

3 months 9 months 12 months ending
ending ending
Dec. Dec. Dec. Dec. Dec. 31, Mar. 31, 2001
31, 31, 31, 31, 2001
2001 2000 2001 2000
Net revenues 244 269 686 711 946 971
Operating income
15 24 48 69 70 91
- in percent of
net revenues 6.2 9.0 7.0 9.8 7.4 9.4


Net revenues decreased by three percent to MSEK 686 (711). The business
volume added by newly acquired units amounted to MSEK 71. Operating
income decreased to MSEK 48 (69).

The market situation was affected primarily by a weakening within the
telecom sector, with lower demand for components as a consequence.

A continued stable sales volume was recorded in sales to the machine and
automotive industries. This was true for components as well as systems
solutions for trucks and forest machinery.

PROFITABILITY

The return on capital employed for the most recent 12-month period was
21 percent, as compared with 38 percent for the preceding financial
year. The corresponding data for return on equity were 18 percent and 36
percent, respectively.

FINANCIAL POSITION AND CASH FLOW

The equity ratio at the end of the period was 39 percent, as compared
with 34 percent at the beginning of the financial year. Shareholders'
equity per share amounted to SEK 16.00, as compared with SEK 14.90 at
the beginning of the financial year.

The Group's net financial indebtedness amounted to MSEK 40 at the end of
the period, which is an increase by MSEK 24 compared to the situation at
the beginning of the financial year.

Cash flow from current operations amounted to MSEK 74 during the period.
Capital expenditures in fixed assets amounted to MSEK 16 and disposals
amounted to MSEK 7. Financing operations were affected by repurchases of
own shares in an amount of MSEK 46.