According with IFRS 5 last year's actual is adjusted for discontinued operations in opposite to month and interim reports published during 2005.
Revenue and profit The Group's revenue was SEK 342 m (283) for the first quarter of the year, an increase of 21 per cent compared to same period 2005. Changes in the value of the Swedish krona compared with HL Display's export currencies last year have had a positive effect on net sales of SEK 13 m.
Operating profit amounted to SEK 22 m (3) and profit before tax was SEK 20 m (5). Changes in the value of the Swedish krona compared with HL Display's export currencies last year have had a positive effect on operating profit of SEK 6 m.
Net interest for the period amounted to SEK -3 m (-3) and translation differences and other currency effects totalled SEK 0 m (4).
During the first quarter demand has overall been strong on all markets. The Asian markets have developed particularly well. The UK sales company is being reconstructed. The effect of these efforts is estimated to show only by the end of year 2006. The high sales volume has had a positive effect on the Group's result following among other things a high utilization of resources in the production units. The accomplished rationalizations in the factory in Sundsvall have turned out well. These together with ongoing productivity projects aim to reduce the impact from changes in volume. A gradually higher level of fluctuation in revenues can be expected as an increasing number of customer specific solutions are delivered. Utilization rate of the recently started factory in China is increasing steadily but contributes so far negatively to the result.
Investments Net investments in fixed assets amounted to SEK 11 m (10). Depreciations according to plan was SEK 11 m (12).
Financial position Liquidity was SEK 64 m (73) and at the beginning of the year at SEK 81 m. Net debt increased to SEK 115 m (114), by the beginning of the year 108. Dividend of SEK 23 m has among other things affected the cash flow during the period. Cash flow from operating activities increased to SEK 17 m (-13). Operational cash flow was 2.13 (-1.30) SEK per share. The equity/asset ratio was 44 per cent (42), 45 at the beginning of the year.
Adaptation to IFRS For a detailed statement of the adaptation to IFRS, see Note 40 in the HL Display Annual Report of 2005.
Personnel The average number of employees was 910 (946) and 906 (954) at end of the period.
Annual General Meeting The Board's proposal of a dividend for 2005 of SEK 3.00 (2.50) per share was approved at the Annual General Meeting on the 14th of March 2006. For more details on decisions, refer to separately published press release. In connection with the meeting, Gérard Dubuy took office as new MD and CEO.
Business Target HL Display's overall objective is to be a growth company with good profitability and to increase growth in value for shareholders; profitability must be prioritized. The financial objective is a sustainable profit margin of an average of 10 per cent.
Outlook for the remainder of 2006 Looking at 2006 the sales growth is estimated to reach at least five per cent. A more detailed forecast will be presented in the nine month report 2006. The full report incl tables can be downloaded from the enclosed link.