Haldex said all of its divisions showed weaker sales and operating profits than the average for previous quarters. The company said its preliminary year-end report for 2001, which is not yet fully audited, shows a 47% decrease in operating profit and a 59% decrease in income before taxes.
Haldex said its weak fourth quarter results are attributed to two main factors. In North America, the production of heavy-duty trailers was reduced by 35% in the fourth quarter compared to earlier forecast and also compared to previous quarters. Haldex also said fourth quarter charges for the costs of warranty claims rose 42% over the average for previous quarters.
Haldex added that forecasts for vehicle production in 2002 point to a further decrease compared to 2001. Even though the production of heavy vehicles in North America is estimated to increase by some 2%, the forecast for the production of heavy-duty trailers has recently been adjusted downwards and shows a decrease of 20%, according to research by J.D. Power and Associates.
Combined, this means a forecast of some 9% production decrease of heavy-duty tractors and trailers in North America 2002 compared to 2001. In Western Europe, the estimates for 2002 point to a production rate of heavy-duty tractors and trailers that is about 12% lower than 2001, Haldex said.