Studsvik AB Announces Interim Report, January - June 2001.Business Editors STOCKHOLM, Sweden--(BUSINESS WIRE)--Aug. 17, 2001 Studsvik AB (Stockholm stock exchange The Stockholm Stock Exchange (Swedish: Stockholmsbörsen) is a stock exchange located in Stockholm, Sweden. Founded in 1863 [1] it is the primary securities exchange of the Nordic Countries. : SVIK.) Studsvik AB - Interim Report, January - June 2001 -- Studsvik was listed on Stockholmsborsen's (Stockholm stock exchange) O list on May 4. -- In March 2001, SEK 320.5 million was injected into Studsvik through a directed share issue in combination with an unconditional shareholders' contribution. -- The result after net financial items for the second quarter was SEK -28.0 million (84.9) and, for the period of January-June, SEK -64.1 million (103.0). Non-recurring items have had a material impact on the result for the second quarter. -- Technical adjustments continued to be made to the Erwin facility and a considerable improvement in production was thereby achieved. -- An agreement was signed to acquire a decommissioning business in Germany. This will have a positive impact on margins already this year. -- A rationalization program has been launched and is expected to result in sustainable savings on the order of SEK greater than 15 million per year, starting in 2002. -- During the second quarter, 6 patients were treated at Studsvik's BNCT facility where brain tumors are treated by neutron irradiation. Business During the second quarter, the nuclear power industry started their annual refuelling re·fu·el v. re·fu·eled also re·fu·elled, re·fu·el·ing also re·fu·el·ling, re·fu·els also re·fu·els v.tr. To supply again with fuel. v.intr. and maintenance outages. However, in both Sweden and Germany, the outages started later, compared with the previous year. This is expected to have a positive impact on the third quarter. Orders received by the Group amounted to SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 257 million during the second quarter, which is an increase of 32 %, compared with the first quarter and 55 % , compared with the second quarter of 2000. An extensive rationalization and change program has been launched. The exact cost of the program cannot yet be determined and has therefore not yet been reported as an expense. However, the cost is estimated at about SEK 20 million. The measures are expected to result in sustainable savings on the order of SEK greater than 15 million, as of 2002. The program will involve downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing and negotiations have started with the trade unions. The arbitration process, where Studsvik is suing Metric Duke, the supplier of the waste management facility in Erwin, USA for damages, is expected to be resolved at the end of the year. Non-recurring costs amounting to a total of SEK 21.1 million have been charged to the result for the quarter. The amount includes expenses for the arbitration process in the USA (11.1), consultants' expenses for the restructuring program (4.5), the winding up of the business in Studsvik Instrumentteknik AB (0.2) and the expenses for Studsvik's listing on Stockholmsborsen (5.3). In June, an agreement was signed to acquire the business in Baumann Nuklear Service GmbH in Germany and ownership was transferred to Studsvik on July 1. The acquisition will improve net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the Group in the second half of the year by about SEK 25 million and will enhance the Group's financial performance already this year. The performance of Studsvik's four SBUs during the second quarter of 2001 is described below. Nuclear Technology Work on quality assurance for the fuel testing project for Japanese customers is progressing as planned. The production capacity for silicon doping doping, in electronics: see semiconductor. Altering the electrical conductivity of a semiconductor material, such as silicon, by chemically combining it with foreign elements. (semi-conductors) was fully utilized. Capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. in the consulting business within reactor technology, environmental technology and other nuclear technology (EcoSafe) has been high with a sizeable and even order inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. . The SBU's operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before amortization of goodwill amounted to SEK 2.4 million (3.8) for the second quarter and to SEK -4.3 million (11.6) for the period of January-June. Waste & Decommissioning Decommissioning is a general term for a formal process to remove something from operational status. Some specific instances include:
The business in Studsvik RadWaste AB developed well during the quarter. Sales for the period of January-June were 6 % higher than the previous year and the operating result improved by just over SEK 6 million. Production figures have improved at the facility for the destruction of ion-exchange resins ion-exchange resin Any of a wide variety of synthetic polymers containing positively or negatively charged sites that can interact with or bind to an ion of opposite charge from a surrounding solution. in Erwin, USA. The trend continued after the balance sheet date. In July, production figures reached 4,160 ft3, the highest figure for any single month. The average price has increased and, during the second quarter, was USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 351, a 29% increase compared with the same period the previous year. Adjusted for legal and expert advisory expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the arbitration process, the cash flow from operating activities was largely at break-even level during the second quarter. The operating result before amortization of goodwill for the SBU SBU St. Bonaventure University (St. Bonaventure, New York) SBU Stony Brook University (State University of New York) SBU Southwest Baptist University (Bolivar, MO) for the second quarter was SEK -19.1 million (-9.0) and for the period of January-June, SEK -32.2 million (-7.3). Industrial Services The SBU is maintaining its strong position on the nuclear power market in Sweden. In Germany, the SBU has consolidated its market position through the launch of Bolero bolero (bəlâr`ō), national dance of Spain, introduced c.1780 by Sebastian Zerezo, or Cerezo. Of Moroccan origin, it resembles the fandango. (TM), a robot used for mechanical decontamination decontamination /de·con·tam·i·na·tion/ (de?kon-tam-i-na´shun) the freeing of a person or object of some contaminating substance, e.g., war gas, radioactive material, etc. de·con·tam·i·na·tion n. of concrete structures. The operating result of the SBU before amortization of goodwill amounted to SEK 6.6 million (13.1) for the second quarter and, for the period of January-June, SEK 8.6 million (14.3). Nuclear Medicine At the BNCT BNCT Boron Neutron Capture Therapy facility at Studsvik, where brain tumors Brain Tumor Definition A brain tumor is an abnormal growth of tissue in the brain. Unlike other tumors, brain tumors spread by local extension and rarely metastasize (spread) outside the brain. are treated by neutron neutron, uncharged elementary particle of slightly greater mass than the proton. It was discovered by James Chadwick in 1932. The stable isotopes of all elements except hydrogen and helium contain a number of neutrons equal to or greater than the number of protons. irradiation irradiation /ir·ra·di·a·tion/ (i-ra?de-a´shun) 1. radiotherapy. 2. the dispersion of nervous impulse beyond the normal path of conduction. 3. , 6 patients were treated during the second quarter of the year. At the beginning of next year, at the earliest, can a conclusion, on the basis of scientific evidence, be presented about the medical effects of the treatment. Nevertheless, so far, it can be said that the treatment is contributing to an increased quality of life for the patients. The SBU's operating result before amortization of goodwill amounted to SEK -0.4 million (0.2) for the second quarter and to SEK -0.3 million (0.5) for the period of January-June. Net Sales Net sales for the Group for the second quarter amounted to SEK 211.6 million (224.8) and for the period of January-June, SEK 408.5 million (407.8).
Result
The result for the Group is analyzed below.
April-June April-June Jan-June Jan-June
2001 2000 2001 2000
Operating result -27.0 87.9 -59.0 106.6
Non-recurring items 21.1 -93.0 31.6 -110.7
Adjusted operating result -5.9 -5.1 -27.4 -4.1
Amortization of goodwill 2.5 2.5 5.0 4.6
Adjusted result before
amortization of goodwill -3.4 -2.6 -22.4 0.5
Non-recurring items for the period of January-June include the following SEK 15.9 million (4.9) in expenses for the arbitration process in the USA, SEK 4.5 million in consultants' expenses for the rationalization program in Sweden, SEK 5.9 million in winding-up expenses for Studsvik Instrumentteknik AB, SEK 5.3 million in expenses relating to the initial public offering and an SEK 0 million (115.6) refund from the SPP (1) (Scalable Parallel Processor) A multiprocessing computer that can be upgraded by adding more CPUs. (2) (Standard Parallel Port) The Centronics parallel port that was used on the first PCs. pension insurance company. The Erwin facility started production on April 1, 2000 and therefore only the second quarter is included in the 6-month interim result for 2000. Financial Position and Liquidity At June 30, liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. amounted to SEK 305.6 million (70.3) and the equity-assets ratio was 45.9 (32.3) %. Interest-bearing liabilities amounted to SEK 340.2 million (257.4). At the end of the period, Group equity amounted to SEK 632.9 million (413.0). During the second quarter, investments in tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → amounted to SEK 13.3 million (223.3) and during the first half of the year to SEK 30.6 million (266.0). Fuel for the R2 reactor is included with SEK 0.3 million (23.5) and SEK 6.3 million (28.2), respectively. Cash Flow For the period of January-June, cash flow from operating activities after investment was SEK -62.7 million (-124.7). Personnel The average number of employees during the first half of the year amounted to 1,174 (1,218). Parent Company In the second quarter, net sales for the parent company amounted to SEK 4.0 million (4.4) and during the first half of the year, to SEK 8.7 million (9.4). Result after financial items amounted to SEK -8.5 million (6.8) and SEK 6.2 million (4.8). At June 30, liquid assets amounted to SEK 287.3 million (0.0). Investments during the second quarter amounted to SEK 0.2 million (0.3). Ownership Structure On June 29, 2001, the number of shareholders was 7,215. The shareholdings of the ten largest shareholders corresponded to just over 60% of the shares. The shares were held by Swedish natural persons just over 17%, Swedish legal entities 26%, and foreign legal entities 57%. Outlook for 2001 Financial performance for the whole of 2001 will be strongly affected by the development of the Erwin business. The prices are showing a tendency to increase and the production figures for the facility are improving. The quantity of waste that is allowed to be deposited at the Barnwell waste disposal facility in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , is being reduced from 160,000 ft3 per year to 80,000 ft3 for the 12-month period starting on July 1, 2001. This can be expected to have a positive impact on prices. Studsvik is now in the process of decisive discussions regarding its participation in three different projects where THOR(TM), the process applied at the Erwin facility, is a vital component. The purpose of the projects is to demonstrate the suitability of the THOR process for the processing of the nuclear waste in the USA for which the US Department of Energy (DOE) is responsible. Studsvik RadWaste AB has had a good inflow of orders. The positive development of the company is expected to continue during the second half of the year. The BNCT business has largely progressed as planned. Providing that the experience of the treatment continues to be positive, the number of patients will increase successively during the year. In 2002, the BNCT business is expected to enter a more commercial phase with an increase in the number of Swedish and foreign patients. The financial performance of the Group for the second half of the year is expected to be better than that for the first half of the year, especially since the Erwin facility is now operating continuously. The development of Studsvik RadWaste AB's business and the fact that Industrial Services is now further consolidating its favorable market position in Germany are also positive. |
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