KESKO CORPORATION STOCK EXCHANGE RELEASE ... - Euroland

2
than in the previous year (EUR 1,455 million). As part of the
chain reform Kesko lowered its wholesale prices to the K-
retailers from the beginning of 2001. The effect of the new
pricing system on net sales is estimated to be two percentage
points.
Net sales by division
1-3/2001 1-3/2000 Change
EUR million EUR million %
Kesko Food 758 794 -4.5
Rautakesko 172 163 5.6
Keswell 154 164 -6.1
Kesko Agriculture and
Machinery 162 143 13.6
VV-Auto 130 150 -13.8
Kaukomarkkinat 73 66 9.6
Other units - eliminations -17 -25
Group total 1,432 1,455 -1.6
Performance
The Group´s profit before extraordinary items decreased, as
forecast, and was EUR 0.7 million (EUR 14.8 million), which was
0.1 percent of net sales (1.0%). The Group´s operating profit
was EUR -0.4 million (EUR 11.9 million). The operating profit
includes gains and losses from sales of fixed assets totalling
EUR 0.4 million (EUR 1.3 million). In addition to the weak sales
development, the initiation and conversion costs arising from
the on-going reform of the store network affected the Group´s
decreased operating profit. The chain reform has been supported
by additional investments. Pension costs are EUR 6.0 million
higher than during the comparison period, when income from
investments by the Kesko Pension Fund decreased the pension
costs. The parent company's operating profit was EUR 7.8 million
lower than in the comparison period.
The Group´s net financial income was EUR 1.1 million (EUR 2.9
million). The change resulted from increased net debt.
Earnings per share were EUR 0.01 (EUR 0.12). Equity per share
was EUR 15.31 (EUR 15.89).
Operating profit by division
1-3/2001 1-3/2000
EUR EUR
million million