In the first half of 2002 Geveke nv achieved net income of EUR 0.7 million before amortisation of goodwill against EUR 14.6 million for the same period last year.
The drop in profit resulted primarily from the continued difficult market conditions and the high operating costs. As the result of a strict cost-control policy and a tightened strategic focus, a profit recovery is anticipated for the second half of the year.
A loss in the first quarter has since been offset by higher net sales and improved net income in the second quarter. For 2002 as a whole we expect a substantially positive net income (before amortisation of goodwill), but sharply lower than in 2001. In 2003, even if market conditions remain the same, ongoing profit improvement is anticipated as the result of a reduced cost base.
Net sales of the strategic Caterpillar and Rental service activities (including the Scandinavian minority interest Cramo) held up well. Another prime focus area, the services and maintenance activities, even showed net sales above last yearâ€™s level.
Nevertheless, Gevekeâ€™s net sales fell by 9.9% in the first six months to EUR 467.4 million (first half of 2001: EUR 518.8 million). The sales and distribution activities, mainly in the clusters Geveke Industrial and Geveke Production Machinery, were under pressure. In both clusters, turnaround processes have been initiated, which should result in at least a break-even situation later in 2002.
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