Financial result for 2001

13.02.2002

January-December 2001

- Net sales increased 8 % to EUR 2,740 (2000: 2,543) million.
- Orders received were EUR 2,294 (2,383) million and the order book at end-December was EUR 425 (end-2000: 453) million.
- The operating profit of the business areas was EUR 116 (173) million.
- Group operating profit fell to EUR 90 (161) million and the operating margin was 3.3 (6.3) percent. The operating profit includes net non-recurring items of EUR -10 (+19) million.
- Profit after financial items was EUR 42 (130) million.
- The equity/total assets ratio rose to 39.2 (end-2000: 37.9) percent and gearing fell to 80.5 (88.4) percent.
- Cashflow was clearly positive EUR +106 (-406) million.
- Earnings per share were EUR 0.44 (1.63).
- Partek´s Board proposes a dividend of EUR 0.50 (0.60) per share.

President & CEO Christoffer Taxell

Year 2001 was a hard year for Partek. The financial result was not satisfactory. But we built the foundation for a more favourable development. We developed our distribution network, launched new products and strengthened our financial position.

Now our focus is on increasing profitability and further strengthening our market position. Innovative products and solutions, combined with a customer-driven mode of operations, support us in reaching the goal of being the customers´ lifetime partner.

We concentrate on the parts of the value chain where we best can create added value: product development, strategic components, assembly, after-market services. We will to a larger extent part with component production and other functions, where competitive suppliers can be found.

We are not counting on an increase in demand this year. But we are not excluding the possibility of the market strengthening towards the end of the year. We are prepared to answer to an increase in demand.

Prospects

The markets will turn upward, at the earliest, in the second half of the year.

Transport and distribution volumes will rise as the economy recovers. According to industry estimates, container throughput will increase, but growth will remain lower than in record years.

The market for forest machines is expected to strengthen at the end of this year, after the weak period. Tractor sales in Brazil are anticipated to remain at a good level, as the government has allocated extra funding for tractor purchases. No major changes are foreseen on the European tractor market.

Based on the efforts in developing new products, strengthening our market position and improving efficiency, Partek´s aim is to achieve higher profits than in 2001. The current market situation will be reflected in the development, especially in the beginning of the year.

Partek has opportunities to further reduce the balance sheet.

Partek is a leading engineering company that supplies products and services for professionals who move and load gods, harvest forests and cultivate the fields. Partek has production in 15 countries and the company is represented in more than 100 countries. Partek´s net sales are EUR 2.7 billion and the number of employees is 12,500 people.

http://www.partekcorp.com/

Partek Corporation

Attachments:

- Financial result for 2001 - tables, http://press.valtra.com/main/articles/attach/25.doc

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