Elektrobit Group Oyj - JOT AUTOMATION'S OUTLOOK FOR THE FIRST HALF OF THE YEAR 2002
April 05, 2002
JOT AUTOMATION'S OUTLOOK FOR THE FIRST HALF OF THE YEAR 2002
JOT Automation Group Plc. estimates that the first quarter 2002 net sales and operating profit will be lower than in the last quarter of 2001. JOT Automation records for the first quarter 2002 non-recurring items of 0.9 million euros due to adjustment measures, non-recurring write-offs 0.7 mil-lion euros on inventories and 1.2 million euros on fixed assets.
The outlook for the first half of the year 2002 remains challenging. Consequently, the non-recurring write-offs on inventories and fixed assets relate to products that will not sell according to plan. The non-recurring write-offs on fixed assets are mainly related to research and development expenses capitalized in previous financial periods and goodwill from an acquisition.
JOT Automation estimates that the second quarter net sales will be slightly higher than the first quarter net sales in 2002, due to, among other factors, the postponed delivery of two major client projects from the first quarter.
Of the adjustment measures, commenced in February 2002, personnel reductions in the Group's domestic and foreign units and the reorganization of the production in USA, have already been carried through. The Group's sales organization has partly been restructured as well. With these actions JOT Automation achieves monthly savings of 650.000 euro effective beginning of April 2002. Cost saving measures will be continued, and it is estimated that the earlier stated minimum objective for total savings, 700,000 euros per month, will be exceeded.
JOT Automation will concentrate on the development of its main business activities and the signifi-cant improvement of its profitability. During the second half of 2002, JOT Automation focuses from its customer segment point of view, especially on the CMS business and from its business group point of view on the test automation business.
The future of JOT Automation depends on how production investments are made and how the effi-ciency and capacity in production are increased both in telecommunications and other electronics industry sectors.
Oulunsalo, April 5, 2002
JOT Automation Group Plc.
Board of Directors
