KESKO CORPORATION STOCK EXCHANGE RELEASE ... - Euroland

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8 the loss during the same period in 2000 was EUR 1.2 million greater. The result was affected by the initiation costs of the three department stores opened at the end of the previous year. The result for the whole year is expected to be better than in 2000. In the sports trade, retail sales have developed much better than in the previous year. The net sales of Kesko Sports also progressed well, increasing by 26.8 percent. The long winter had a favourable effect on the trade in winter sports goods. Sales of home technology easily fell short of the previous year’s level. The net sales of Kesko Musta Pörssi were 16.4 percent down on the year before. The greatest reason was the drastic drop in sales of television sets. The drop is believed to be a result mainly of consumers postponing their purchases until digital TV programmes start in the autumn. On the other hand, the trade in information technology and mobile phones has advanced favourably. The net sales of Kesko Shoes increased by 1.4 percent. Some of the K-kenkä chain’s stores were organised into a new group called Kenkäexpertti. At the end of the period under review, there were 33 stores operating in the K-kenkä chain, 28 stores in the Andiamo chain and 46 stores in the Kenkäexpertti group. In April, after the period under review, an Intersport megastore was opened in Lappeenranta. Musta Pörssi Maailma stores will be opened in Turku in the spring, in Oulu in the summer and in Lappeenranta towards the end of the year. Intersport megastores will be opened in Tampere and Turku during the autumn. An Intersport store and a Musta Pörssi store will be established in the shopping centre that will be completed in Forssa towards the end of the year. In addition, the premises for an Intersport store and an Andiamo store will be built in the Mylly shopping centre at Raisio that will be opened towards the end of the year. An Andiamo store will be built in the Omena shopping centre to be opened in Espoo in September. Keswell´s result for the whole year is forecast to exceed the previous year’s level. Kesko Agriculture and Machinery The net sales of Kesko Agriculture and Machinery were EUR 162 million, an increase of 13.6 percent, which was slightly better than expected. The operating profit was EUR 1.7 million (EUR 1.9 million). Investments totalled EUR 0.5 million. Kesko Agriculture´s sales increased in line with expectations by 7.9 percent. The good harvest in 2000 was reflected in the sales volumes of grain. The delivery difficulties of the Zetor factory
9 are still affecting tractor sales. Kesko Agriculture will start the marketing of Deutz-Fahr tractors this year. The overall net sales of Kesko Machinery were slightly better than expected and grew by 19.7 percent, although the total market in this sector contracted slightly. The market share of the Man lorries expanded favourably at the beginning of the year to reach 8.9 percent. Sales of Yamarin boats also continued favourably. The agricultural and machinery business in Estonia and Latvia has progressed according to plan. A full-service agricultural and machinery store will be started in Riga, Latvia in May. At the beginning of February, the K-agricultural store in Forssa was added to K-maatalousyhtiöt Oy´s network. K-maatalousyhtiöt Oy now has a total of 20 K-agricultural stores. There are also 90 retailer-owned stores operating in the K-agricultural chain. The operating profit of Kesko Agriculture and Machinery for the whole year is expected to grow from the previous year. VV-Auto The VV-Auto Group´s net sales were EUR 130 million, a decrease of 13.8 percent. The operating profit was EUR 5.5 million (EUR 7.5 million). Investments totalled EUR 0.8 million. The overall car market in Finland dropped sharply at the beginning of the year. The number of new cars registered was 25.7 percent lower and the number of commercial vehicles 1.5 percent lower than in the corresponding period of 2000. The cars imported by the VV-Auto Group had a 13.8 percent market share during the period under review. The market shares of Volkswagen and Seat contracted slightly, whereas Audi sales did well, thanks to the new A4 model. Concerning commercial vehicles, Volkswagen´s market share rose to 23.0 percent, making it the market leader. The net sales of spare parts increased slightly despite the contracting market, whereas the sales of accessories decreased, resulting from the smaller sales volumes of new cars. The VV-Auto Group´s net sales and operating profit are expected to decrease from the previous year, due to the diminished overall car market, but to remain at a good level. Kaukomarkkinat The Kaukomarkkinat Group´s net sales were EUR 73 million, which
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Page 3 and 4: 3 Kesko Food -4.2 -1.2 Rautakesko -
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Page 7: 7 million). In Sweden, K-rauta AB (
Page 11 and 12: 11 According to its transition plan
Page 13 and 14: 13 On 9 April 2001, Kesko Corporati
Page 15 and 16: 15 TABLES: Group’s net sales by d
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KESKO CORPORATION STOCK EXCHANGE RELEASE ... - Euroland

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