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April 27, 2000 | Interim Report
Haldex 1st Quarter 2000

Haldex 1st Quarter 2000 * Earnings before tax increased 29% to 92 MSEK (71) * Earnings per share increased 31% to 2:62 SEK (2:00) * Operating earnings increased 18% to 107 MSEK (90) * Profit margin improved * Continued positive vehicle market during the 1st quarter * Order intake rose 5% to 1,701 MSEK (1,613) and invoicing rose 8% to 1,618 MSEK (1,495) * @New 1 BSEK order for AWD systems from a European car manufacturer Market The vehicle business climate on the main markets in North America and Western Europe continued positive during the first quarter. The markets in Asia and South America are successively improving from low levels. Heavy vehicles In North America, sales of heavy vehicles to fleets increased by 3% compared to the same period last year. The sales of trailers rose 5%. As expected, the production rate of heavy vehicles in North America decreased compared to the latter part of 1999 in order to reduce the inventory of vehicles in the distribution chain. In comparison with the 1st quarter last year, however, the number of vehicles produced increased by 5%. The production of trailers in North America increased about 3% compared to the 1st quarter last year. In the trailer segment there has not been the same build-up of inventory in the distribution chain as for powered vehicles. Therefore, the adjustment in production rate of trailers during the year is estimated to be significantly smaller than for powered vehicles. On a full year basis, the production of powered trucks in North America is estimated to decline some 15%. Of the Group's total invoicing, approximately 15% are exposed to production of powered trucks in North America. In Western Europe, the demand for trucks remained strong. During the 1st quarter this year, the production rate was on approximately the same level as during the latter part of last year, but about 3% higher than the 1st quarter last year. In South America, the production of heavy trucks increased, but the production of buses decreased as much, leaving the total production of heavy vehicles unchanged. In Asia, the number of produced vehicles increased from a low level. The Group's invoicing pertaining to products for heavy vehicles amounted to 1,054 MSEK (1,030), an increase of 2%. After adjustment for divested units within the Brake Systems division, the increase for continuing businesses was 5%. Light vehicles In North America, the sales of light vehicles increased by over 10% compared to the first quarter last year. In Western Europe the sales increase was 4%. In order to reduce inventories, the North American production only rose 4%. In Western Europe the number of produced light vehicles rose nearly 3%. The Group's invoicing pertaining to light vehicles amounted to 280 MSEK (209), an increase of 34%. The large increase mainly relates to Traction Systems, but also Garphyttan Wire increased its deliveries. Industrial vehicles The market for forklift trucks remained strong in the first quarter, both in North America and Western Europe. In the heavy construction equipment segment, the market in North America declined whereas the Western European market improved. For light construction equipment the markets showed a growth in both North America and in Western Europe. The Group's invoicing pertaining to products for industrial vehicles amounted to 284 MSEK (256), an increase of 11%. Results The Group's earnings before tax were 92 MSEK (71), an increase of 29% compared to the same period last year. The operating earnings increased 18% to 107 MSEK (90). All four divisions increased their invoicing. The operating result increased in all divisions with the exception of Traction Systems, which remained on last year's level partially due to on-time costs for tools in order to reduce costs of components. The profit margin was improved in all divisions with the exception of Brake Systems, which remained on last year's level. The Group's profit margin increased from 6.3% last year to 6.7%. Excluding Traction Systems, the profit margin improved from 8.1% last year to 8.8%. The Group's return on capital employed improved from last year's 14.2% to 15.7%. Excluding Traction Systems, the return on capital employed improved from 18.5% last year to 19.6%. The period's order intake was 1,701 MSEK (1,613), an increase of 5%. After adjustment for divested units within Brake Systems, the increase of order intake was 7%. The invoicing amounted to 1,618 MSEK (1,495), an increase of 8%. For continuing businesses the increase was 10%. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/27/20000427BIT01010/bit0001.doc The full report http://www.bit.se/bitonline/2000/04/27/20000427BIT01010/bit0002.pdf The full report