Seco Tools 4Q Net Profit +7.3%,Held Back By Raw Material Prices,FX

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; [phone]; [e-mail]