BARCO confirms expectations for 1st semester of 2002

Kortrijk, May 8, 2002. At the annual general meeting of shareholders, BARCO confirmed its expectations concerning the results for the first semester of 2002.

It is expected that for the first half of the year 2002 the turnover will remain at the same level as for the second semester of 2001, though with greater profitability. The consolidated turnover of BARCO for the second semester of 2001 is taken as reference, including the turnover of dotrix n.v. and excluding the turnover generated by Barco Graphics activities which are now part of Esko-Graphics and which as of January 1, 2002 are no longer being totally consolidated. In late 2001 dotrix n.v. was split off from Barco Graphics, with BARCO retaining an 88% share of the new company.

In the first quarter of 2002 a turnover of € 152 million was achieved and an EBIT of nearly € 10 million (1). These results were clearly affected by the undeniably poor performance in the month of January. On the basis of the turnover and order evolution in the first quarter of 2002, BARCO is expecting an approximately 15% rise in turnover in the second quarter as compared to the first, while for the EBIT a double digit percentage is expected in relation to the turnover as a result of the decrease in fixed costs and the larger gross margin in absolute figures. For this reason, BARCO is expecting an EBIT margin above 8% for the first semester.

In the course of the first quarter of 2002, BARCO’s net cash position also improved greatly, due in part to a 10% reduction of stocks. For the second half of the year BARCO is expecting a further rise in the EBIT margin compared to the first semester due to a slight increase in the turnover and further cost control. In addition, through better stock control, the inventory will once again be reduced by 10%.

Whereas the positive evolution in orders in the first quarter compared with the second half of 2001 would suggest that a selective economic revival was underway, the markets in which BARCO is active are in fact displaying a rather mixed picture. There is clearly rapid growth in the market for media and events, both for projectors and for LED walls. The fact that with ISIS, BarcoView is the sole supplier of flat LCD screens for air traffic control is enabling BARCO to secure significant contracts. The introduction of the Coronis, a flat LCD screen, is resulting in further expansion of BARCO’s share in the medical market, as well. On the other hand, there are also certain negative factors to be noted in a number of markets in which BARCO is active. For example, the Control Rooms business unit is suffering under the crisis in the telecom sector. At the current time BARCO is also facing problems with the supply of a few critical components for certain products.

From the second quarter of 2002 onwards, BARCO intends to draw up a report each quarter. This means that in the communication of the half-year results on August 28th, the results of the first and second quarters of 2002 will be discussed separately.

On the recommendation of the Board of Directors, Mr. Philippe A. Naert has been newly appointed as a director of BARCO n.v.



(1) These figures are provisional and have not been audited.


About BARCO
BARCO, with headquarters in Kortrijk, Belgium, has three key activities which are all active in Image Processing. BarcoProjection is in various markets of large screen visualization. BarcoView develops and manufactures display systems for life critical applications, while BarcoVision is in systems for visual inspection and quality control. In 2001, the entire BARCO group delivered a turnover of 792 million EUR. BARCO has a network of subsidiaries, distributors and agents in 97 countries throughout the world. BARCO has been quoted on the Brussels Stock Exchange since 1986, and is now quoted on Brussels/Euronext. BARCO is a BEL 20 and a Next 150 company and is a component of the Dow Jones Sustainability Indexes.

You can find more information about BARCO on the web: www.barco.com

 

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