Dow Jones
Swedish metals cutting machines maker Seco Tools AB (SECO-B.SK)
said Wednesday its fourth-quarter 2011 net profit rose 7.3%, helped
by stronger sales and higher sales prices, while held back by a
rise in raw material costs and negative currency translation
effects.
MAIN FACTS:
- Seco Tools' fourth quarter net profit rose to SEK236 million,
from SEK220 million a year earlier. The bottom line was burdened by
additional raw material costs amounting to SEK50 million, negative
currency translation effects of SEK22 million and extra costs
related to new product launches in the amount of SEK20 million, the
company said.
- Sales meanwhile rose 17% in the quarter to SEK1.85 billion,
from SEK1.58 billion a year earlier, boosted by higher sales prices
and demand growth in particularly the NAFTA states and in Eastern
Europe, where sales grew 31% and 22%, respectively, in the
quarter.
- Seco Tools furthermore said the sale of the company to Swedish
engineering group Sandvik AB (SAND.SK) is fully on track. On Jan
16, Sandvik held 98.7% of Seco Tools' issued shares. The offer
expired on Jan 26. Seco Tools has now applied for a delisting from
the stock exchange and will hold an extraordinary shareholders
meeting on Feb 17, where a new board of directors will be
elected.
- Seco Tools provided no forward-looking statements or results
guidance. Due to the takeover, it said, no dividends will be paid
out for 2011.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44
(0)20 7842 9296; ian.walker@dowjones.com