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Press Release
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17th August 2000, Lund,
Sweden
Doro hit by strong US Dollar and Continued Component
Shortage
DORO, the Lund-based telecommunications company listed on the
O-list (Attract 40) of the OM Stockholm Exchange, has continued to be hit by a
strong US dollar and the global component shortage.
Strong Dollar
The US dollar has continued to gain strength since the middle of June. A
majority of DORO's products are bought in US dollars and sold in other
currencies. The purchase price usually drops for each different product. The
price reduction level has usually absorbed the higher USD exchange rate. DORO
has a currency policy, where a limited amount (around 25% of the flow) is hedged
in US dollars.
Due to the components shortage, suppliers' prices are steady
or rising. The climbing USD rate during the quarter, has only been marginally
compensated for in sales prices on important markets due to long-term price
commitment.
Continued Components Shortage
The shortage of different components has continued in Q3. The shortage has
been caused by a global shortage of manufacturing capacity and has mainly
affected DECT - digital wireless telephones. The main reason is the substantial
growth in demand for mobile telephones. Delivery orders are in place until early
Q1 2001. Activities in France continue to have disturbances in the supply of
products.
The shortage of products increases the purchase price and
logistics costs.
Programme of Measures
During the year an effectivity programme will be carried out in all
companies in the Group. A rationalisation programme will be completed meaning
the number of products within the Group will be cut by 30% before next year.
Furthermore, cost-cutting measures will be carried out in all areas of the
Group. Different programmes are to be carried out to integrate the latest
acquisitions (DORO Matra Telecom and DORO Atlantel).
Special measures are being implemented in the UK and France,
which have not developed according to plan.
Considerably Lower Profits for the Full Year
DORO believes that the profit for the year will be considerably lower than
last year (a pre-tax profit of SEK 65 million).
DORO will issue its Q3 report on 16 October. More information
about Doro can be found at: www.doro.com
For
more information please contact:
Doro
Claes Buhler, CEO
Tel: +46 46 280 5061
Ingvar Karlsson, CFO
Tel +46 46 280 5062
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