Scandinavia Now - Archives 2004 January

2004 January

Rautarukki sells steel to Sakhalin Island
(30.01.04) Rautarukki's Metal Products Division has signed two major contracts to supply prefabricated steel products to the Sakhalin II project in Russia. This is Rautaruukki's first order from the Sakhalin oil and gas fields. Construction of the oil and gas fields on Sakhalin Island and the mainland is the largest project in the sector in Russia. The Sakhalin I project will start later. The orders received by Rautaruukki are worth altogether EUR 4.5 million.
KXM, the largest builder of oil and gas tanks in Russia, is building two 100,000 cubic metre storage tanks for crude oil on the island. The tanks are 93 metres in diameter and 18 metres high. Rautaruukki will supply from the Raahe Works all the prefabricated steel products needed for the tanks, from the bottom plate for the tanks to the access gangways on the roof.
The other contract won by Rautaruukki for Sakhalin is for prefabricated steel for the outer shell, bottom and roofing plate of a gas storage tank. Both orders will be transported by sea during the spring from Raahe.

TANDBERG shows strong 2003 results
(30.01.04) TANDBERG , global provider of collaborative communication solutions, today announced financial results for the fourth quarter and year-ended December 31, 2003.
Highlights for the fourth quarter include:
- Revenue of 461.3 MNOK or 66.9 MUSD with record unit volume of 5,699
- Operating profit of 102.9 MNOK
Pre-tax profit of 94.4 MNOK
- gross margin of 67.6%, demonstrating strength of operating model
- Negative finance due to adverse exchange rate development on USD nominated current assets
- Strong cash flow generation with 71.2 MNOK net positive cash flow after 40.2 MNOK in paid taxes

UPM-Kymmene profit plunges. CEO resigns.
(30.01.04) Forestry group UPM has released its 2003 figures, showing a sharp decline in profits. CEO Juha Niemelä has resigned.
Report highlights:
- Profit before extraordinary items for 2003 was EUR 559 million (789 million for 2002), and excluding non-recurring items EUR 457 million (835 million).
- Earnings per share for 2003 were EUR 0.70 (1.06 for 2002), and excluding non-recurring items EUR 0.57 (1.12).
UPM also announced the appointment of Jussi Pesonen as President and CEO of the company. Mr Pesonen has been the Senior Executive Vice President and COO of the company since 2001 and will take up his new appointment immediately. He is succeeding Juha Niemelä whose resignation from the position of President and CEO was today accepted by the Board. Mr Niemelä also announced that he will resign from the Board of Directors.

Scandinavian Airlines grounded by strike.
(30.01.04)Following negotiations on Wednesday between the Swedish Air Transport Industry Employers’ Association and the Swedish Transport Workers’ Union, an agreement was not reached on the 2003 contract for flight technicians, mechanics, baggage handlers and packers. The unions have therefor gone on strike between 5:00 AM and 10:00 PM on Friday, January 30th.
During Friday SAS will operate according to a new traffic plan that will entail cancellation of some 80 departures between the hours of 5:00 and 10:00 a.m. Furthermore, some 20 flights will be delayed. In addition to SAS, Blue 1, Braathens, SAS Commuter, Snowflake and Spanair will be affected.Negociations finally broke down on an issue concerningthe Transport Workers’ Union demand for exclusive right for flight technicians to perform a certain task that today is performed by mechanics.

HM pret-a-porter shows pretty profit
Swedish clothing giant HM has released is 2003 figures showing record profits. Some highlights of the report are:
- Group turnover for the year amounted to SEK 56,550 m (53,332) including VAT, an increase of 6 per cent compared to last year. With comparable exchange rates, the increase was 9 per cent. Turnover excluding VAT was SEK 48,238 m (45,522).
- Profit after financial items was SEK 9,609 m (8,629). Group profit after tax increased by 12 per cent and amounted to SEK 6,386 m (5,687) corresponding to SEK 7.72 (6.87) per share.
- Operating profit and operating margin has improved further in all markets and are the best the Group has reached.

Apoteket appoints WM-data and EDB for IT services outsourcing
(29.01.04) In a statement issued by Apoteket on January 28, WM-data has been appointed Prime Contractor for Apoteket’s IT operations. It is intended that the parties will sign an agreement on February 9.
As Prime Contractor, WM-data will have primary responsibility for contracts covering systems management, systems development and IT production. With regard to IT production, Apoteket has selected EDB Business Partner ASA as sub-contractor to WM-data. The value of the contract is approximately SEK 1 billion over a maximum contract period of five years.
Apoteket is a state-owned limited company with a sole and exclusive right to sell pharmaceuticals to the general public and is responsible for the provision of pharmaceuticals throughout Sweden. Apoteket currently has approximately 11,000 employees and 900 pharmacies. A total of 39 suppliers were involved in the procurement process to outsource Apoteket’s IT operations.

SAS to merge airlines in Norway
(28.01.04) The Scandinavian Airlines System's management Wednesday proposed combining its two carriers in Norway, SAS and Braathens, into a single airline to improve efficiency.
SAS took over economically troubled Braathens, mainly a Norwegian domestic carrier, in 2001 and immediately began cutting costs. Braathens continued to operate under its own name and with its own organization in Norway.
In a news release, the SAS management said they were proposing to the airline's board that the two airlines be merged into one unit. They said it could be branded SAS, Braathens or an entirely new name in Norway.

Norges Bank reduces interest rates
(28.01.04)Norges Bank’s Executive Board decided today to reduce the interest rate on banks’ deposits with Norges Bank, the sight deposit rate, by 0.25 percentage point to 2.00 per cent with effect from 29 January 2004. The interest rate on banks’ overnight loans is being reduced correspondingly. According to Norges Bank’s assessment, with a sight deposit rate of 2.00 per cent at present, the probability that inflation two years ahead will be lower than 2½ per cent is greater than the probability that it will be higher.

TSX Group acquires Natural Gas Exchange from OMHEX
(28.01.04) OMHEX and TSX Group have reached an agreement under which a wholly- owned subsidiary of TSX Group will purchase 100% of NGX (Natural GasExchange) Canada Inc. for approximately CAD 38 m (SEK 211.3 m). NGX is a Canadian exchange that trades and clears natural gas and electricity contracts. The transaction is expected to close in the first quarter of 2004 and is subject to regulatory approvals and other customary conditions of closing. In addition, the agreement between OMHEX and TSX contains a five-year license for CLICK XTÖ and the parties will look for areas to work together on future business development.

Electronic Pay slips
(28.01.04) TietoEnator, WM-data Novo, Nordea, the OP Group and Sampo have jointly created an online salary concept to facilitate the making of electronic pay slips
TietoEnator, WM-data Novo, Nordea, the OP Group and Sampo have jointly created an online salary concept. It enables employers to provide their employees with an electronic pay slip that can be viewed using the employee's Internet bank ID. Other banks and payroll software providers can also join the concept.
The online service enables employers to deliver their employees' pay slips in electronic format via the Internet bank. The concept provides employees with time and place-independent access to their salary data. They can also browse their previous pay slips and contact the payroll office. Thanks to the service, employers gain savings from reduced material, printing and distribution costs of paper pay slips, and
employees can enjoy improved services.

TDC buys Telmore
(27.01.04) Today, TDC Mobile International has concluded an agreement with the shareowners in Telmore on purchase of the remaining shares in the company.
Telmore’s founder and CEO, Frank Rasmussen, has decided to leave the company in connection with the transaction, but will continue to offer his services during a transitional phase. Allan Christiansen, who comes from a position as director of the residential customer segment at TDC Solutions, will be Telmore’s new CEO. He will build on the success Telmore has had so far with its attractive prices and its simple web-based concept.
”TDC is looking forward to building on Telmore’s success, not least because the company is well run and dynamic and because it has proven how important a role the Internet will play in future customer handling. Telmore will become part of the TDC Group with all the advantages that this offers, but the company will continue to have its own profile,” says Henning Vest, President of TDC Mobile International.
TDC Mobile International bought a 20 percent stake in Telmore in April last year with an option to buy the remaining shares. It is this option that is now being exercised. The purchase price for the remaining shares is DKK 299m plus dividends for 2003

KEMIRA sell exhaust systems business
(27.01.04) Kemira's subsidiary Ecocat Oy has sold its shares in the company's subsidiary Metpela Oy in Laitila, Finland, to Godarb AB of Sweden. Ecocat Oy manufactures catalytic converters at Vihtavuori and Ecocat's subsidiary Metpela engages in the manufacture of exhaust systems. Ecocat will focus more specifically in solutions connected to the use of catalysts in petrol and diesel engines.
Metpela plants in Laitila employ 57 persons. The company's net sales total about EUR 7.0 million. Metpela manufactures exhaust systems for OEM (original equipment manufacture) and spare part sales.
Through its purchase of the Metpela business, Godarb's position as a component supplier to the vehicle industry will strengthen further. " We are a supplier of complete exhaust systems to vehicle manufacturers, including small vehicles and heavy duty vehicles", says Micael Ljungström, the content owner and chairman of the board of Directors of Godarb AB.

Aker Kvaerner resolves with Equatorial for 101 million USD
(26.01.04) Aker Kvaerner has recently resolved a number of disputes, including the case between Kvaerner US Inc and Equatorial Tonopah.The settlement with Equatorial involves payments of USD 101 million by Aker Kvaerner‘s US subsidiary to Equatorial. Insurance proceeds will cover USD 75 million of the USD 89 million that will be paid now. The remaining amount will be paid in two USD 6 million installments, in 2005 and 2006 respectively. The parties have agreed to discontinue all legal processes and close the books concerning the Tonopah project in Nevada, US.

Finnish shipyard to build ice breaker for Russian FESCO
(26.01.04) The Russian Far Eastern Shipping Company (FESCO)has ordered an ice-breaker from Kvaerner Masa-Yards in Finland according to a report in Helsingin Sanomat. Order value is EUR 65 million. The ship will be used on the oil shelf of the Okhotsk Sea and should be ready by May 2005. This is the first of a series of two ice breakers agreed on.

Telia Sonera selects Helix from Real Networks
(26.01.04) RealNetworks®, Inc. , creator of digital media services and software, and TeliaSonera telecommunications group in the Nordic and Baltic regions, today announced that TeliaSonera has selected RealNetworks’ Helix™ mobile platform to power streaming delivery of audio and video content to GPRS and 3G network mobile subscribers in Finland and Sweden.
"Video and audio streaming are key components in the emerging new mobile services. The Helix mobile platform itself is invisible for mobile users and content providers, but it enables TeliaSonera to create a new class of easy-to-use services," said Mr. Jussi Komonen, Development Manager for Streaming Technology with TeliaSonera Finland MediaLab.

Yahoo closing down local Scandinavian editons.
(26.01.04) According to a report in Jyllands-posten and AFP later confirmed by Yahoo, the internet portal will close down it's Scandinavian operations at the begining of february. The shutdown, which will affect about 15 employees, is said to be due to the fact that most scandinavians choose to access yahho.com rather than the national editions. The national mail-accounts associated with Yahoo will be maintained.

Nokia awarded 117 MUSD GSM contract in Philipines
(26.01.04) Nokia and SMART Communications, Inc. (SMART) have signed a contract worth approximately USD 117 million for Nokia to supply GSM/EDGE and next-generation equipment for Smart's network rollout in the Philippines.
Smart's network rollout is aimed at increasing GSM network capacity to meet increasing demand in rural areas, in addition to enhancing innovative multimedia services over high quality EDGE network.

Ericsson sells rural GSM networks in the US
(26.01.04) Ericsson has signed managed services contracts with three individual rural market operators to migrate their TDMA wireless networks to GSM. According to the agreements, Ericsson will manage and provide core network capacity on demand to each operator. By choosing this strategy, Missouri-based Chariton Valley Wireless Services, Pennsylvania-based Indigo Wireless and Georgia-based PSC Wireless will each be able to deploy a full-featured GSM network with more flexibility, and less capital and operational expense than traditional buildouts.
Under the terms of the agreements, each customer has purchased and will operate its own radio access network. Each operator will use Ericsson's supplied core network capacity to provide switching services and data capabilities, which initially will include GPRS,
voice mail and SMS.

Vesta outsources IT to CSC for US$ 30 million
(26.01.04) Computer Sciences Corporation today announced that it hassigned a five year, US$30 million information technology (IT) outsourcing agreement with Vesta, the third largest insurance company in Norway.
Under the terms of the agreement, CSC will provide mainframe, midrange,desktop, web hosting, print and distributed computing infrastructure services in addition to help desk and network infrastructure services. These serviceswill support approximately 1,400 users at Vesta locations throughout Norway.
Vesta is the Norwegian division of the Tryg Vesta Group, the secondlargest general insurer in the Nordic countries. The new agreement followsthe award of an US$80 million IT outsourcing agreement to CSC from Tryg VestaGroup in May 2003.

Secret 18 MUSD order to Anoto
(26.01.04) Anoto, the digital pen developer, has received an order valued at USD 18 million from a new, unnamed, Anoto partner. The order consists of prepaid royalty and license payments. Anoto expects the order to run for approximately three years and deliveries will be made continuously. Cash flow generated will be approximately USD 6,5 million during 2004 and USD 11,5 million during 2005.
“We regard this as a third application area for Anoto. It will complement today’s areas of “personal productivity” and “forms”. The new application area will bring a new dimension of interactivity to paper. We will announce the details of the partnership later this year,” says Örjan Johansson, CEO, Anoto Group AB.

Norway edging towards Yes to the European Union
(25.01.04) Pro EU sentiment in Norway is on the rise according to a recent poll by Opinion, as reported in Dagens Naeringsliv. 48 % saying Yes to the EU, 35% against a Norwegian membership and 16 % undecided marks a slight increase of the EU favorable vote. 19% of those who voted No in the 1994 referendum today say they would bote Yes while only 4 % of the Yes voters in 1994 say they would vote No today.

Marimekko shows strong 2003 result
In 2003, Marimekko Group's (textile & clothing) net sales grew as forecast, by 15% to EUR 56.6 million (EUR 49.3 million), and its profit performance improved significantly.
Operating profit improved by 37% to EUR 8.8 million (EUR 6.5 million). Profit before extraordinary items and taxes increased by 39% to EUR 8.5 million (EUR 6.2 million). Earnings per share rose by 38% to EUR 0.75 (EUR 0.55). The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.50 per share be paid for 2003. The favourable trend in the Group's business is expected to continue in 2004. The Group's net sales are estimated to grow by about 10% and profitability is anticipated to remain at a
good level.

Increase in Swedish unemployment
(22.01.04) Statistics Sweden reports that the unemployment in December was 5.1 (±0.3) per cent of the labour force compared to 4.1 per cent in December 2002. This means that the number of unemployed has increased by 43 000 persons out of which 32 000 were in the age group 25-64. Also in the age group 16-24 unemployment has increased. 68 000 (±10 000) of the 224 000 (±15 000) unemployed persons were long term unemployed, which means unemployed more than 6 months. This is an increase by 20 000 persons since December 2002. Seasonally adjusted data show a continuous increase in unemployment since autumn 2002.

I'm a poet and I know it.
(22.01.04) Norwegian Finance Minister Per Kristian Foss has chosen to display his poetic vein when responding to a campign launched at the finance ministry by a multitude of employees at chocolate factories in Norway.
The campaign was a protest against the tax levied on chocolate and other sweets in Norway, while other snacks, such as cookies or ice-cream are not affected. The tax is at about 15 NOK per kilo and brings in about 1 billion NOK to the state.
Read an english translation of the poem here.

Final 2003 figures from Nokia above expectations
January 22, 2004.Nokia Mobile Phones grows sales and delivers record profits for Q4 and full year 2003.
Nokia Networks demonstrates good profitability in Q4 due to strong seasonality and favorable product mix as well as impact of restructuring measures
Highlights 4Q 2003 (all comparisons are year on year):
-Net sales decreased 1% to EUR 8.8 billion (up 8% at constant currency)
-Nokia Mobile Phones net sales increased 4% to EUR 7.0 billion (up 15% at constant currency)
-Nokia Mobile Phones volumes grew 20% to 55.3 million units, leading to an estimated 38% market share
-Mobile phone industry volumes were an estimated 145 million units
-Excellent profitability with Nokia Mobile Phones pro forma and reported operating margins of 24.7% and 24.4%, respectively
-Color-screen phones made up half of Nokia Mobile Phones volumes
-Nokia Networks sales were EUR 1.7 billion, exceeding Nokia expectations
-Nokia Networks pro forma and reported operating margins improved to 12.1% and 2.4%, respectively
-Pro forma EPS (diluted) grew 12% to EUR 0.29; reported EPS (diluted) grew 14% to EUR 0.25

Millicom to Stockholm Stock Exchange
January 22, 2004 - Millicom International Cellular S.A. ("Millicom") (Nasdaq: MICC) today announces that its Board of Directors has decided to start preparations in order to apply for a listing of its shares on the Stockholmsbörsen stock exchange in Sweden. The listing is expected to become effective during the first half of 2004. The listing will be in addition to the listing of Millicom's shares on the NASDAQ National Market and the Luxembourg stock exchange.
Marc Beuls, President and CEO, commented: "We believe that a secondary listing in Stockholm will increase liquidity in Millicom's stock. European investors, particularly in the Nordic region, have expressed significant interest in Millicom as a result of their knowledge of the Kinnevik group and a listing in Stockholm will make it easier for such investors to trade Millicom shares and will provide greater market visibility."

Stora Enso's operating profit lower in fourth quarter than third quarter 2003
(20.01.04) Stora Enso Oyj is expected to report approximately one-half lower operating profit for the fourth quarter than the third quarter of 2003
. The decrease is due to:

an increased proportion of lower margin overseas sales;
impact of the declining US dollar;
holiday season shut-downs in the Nordic mills, especially in Finland;
the paper workers' union strike in Finland in ecember 2003;
the cost of certain redundancy measures implemented at mills and included in the operating result; and
delays in the start-ups of some investments.

Stora Enso's non-recurring items for the fourth quarter totalled approximately EUR -68.5 million. They include a write-down of USD 16.4 (EUR 14.5) million for expected capital loss on the sale of forestland in Ontario, Canada and USD 61.1 (EUR 54.0) million due to the provision for expected losses from termination of the US cross-border leasing contracts.

Carlsberg Breweries leading brewer in the North of Germany
(20.01.04) Carlsberg Breweries A/S has entered into conditional agreements to acquire 51% of the share capital in Holsten-Brauerei AG at € 38 per share from the Eisenbeiss family and other parties. Carlsberg Breweries will make a voluntary public offer at the same price to buy all outstanding shares.
Following the divestments, Carlsberg Breweries will be the leading brewer in the north of Germany and the 5th largest brewery group in Germany. Carlsberg Breweries will keep the Holsten brewery in Hamburg and four other Holsten breweries with a total production capacity of 7.9 million hl beer, the internationally renowned beer brand Holsten and regional beer brands such as Lübzer, Feld-schlösschen, Astra, Landskron and the speciality brand Duckstein.
Germany is the largest beer market in Europe. With the acquisition of Holsten-Brauerei, Carlsberg Breweries becomes the leading brewery and market leader in northern Germany with a market share of 35% in Schleswig-Holstein/Hamburg, 25% in Mecklenburg-Vorpommern, 12% in Lower Saxony/Bremen and 12% in Saxony. These market positions will become the natural extension of Carlsberg Breweries' leading position in the Nordic region.
At the same time, an agreement has been made to sell the breweries of König-Brauerei in Duisburg and Licher Privatbrauerei in Lich to the Bitburger Group at a price of € 469 million on an enterprise value basis. Furthermore, Carlsberg Breweries has been granted an option which provides Holsten with the right to sell its 65% shareholding in mineral water companies at an implied enterprise value of € 159 million. This means Holsten will be in a position to on-sell assets at a total enterprise value of € 628 million.

Sony Ericsson boosts sales and profit
(19.01.04) Sony and Ericsson today announced the consolidated financial summary for the fourth quarter, ended December 31, 2003 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson. The company reported continued growth in sales and shipments in the fourth quarter.
For all of 2003, units shipped reached 27.2 million, which is 19% higher than previous year. Sales for the year were Euro 4,673 million, representing an increase of 12% compared to 2002. Income before taxes was Euro -130 million which includes restructuring charges of Euro 63 million. The strategic focus areas of GSM and Japanese standards posted a 50% and 15% year-on-year growth in shipments respectively.
"We are pleased to announce another quarter of profit and a strong second half of the year. Following restructuring in the first half of the year, we have established a more solid operational platform. 2003 has seen Sony Ericsson further establish itself as an innovative and exciting new brand says Katsumi Ihara, President of Sony Ericsson.
During the 4th quarter the company started shipping a variety of new products to further enhance and diversify its product portfolio in the GSM and Japanese markets. Units shipped in the quarter reached 8.0 million, which is 13% higher than the same period last year. Sales for the quarter were Euro 1,437 million, representing year-on-year increase of 16%. Income before taxes was Euro 46 million which includes restructuring charges of Euro 9 million, relating to the final phase of previously announced restructuring of the American CDMA business and the GSM development unit in Munich, Germany. Net income was Euro 43 million, which represents year-on-year improvements of Euro 112 million.

PRICER WINS CARREFOUR CONTRACT
Pricer AB, supplier of electronic price and information systems, has won the tender for ESL systems (Electronic Shelf Label) by French retail group Carrefour S.A.
The contract comes after one year of evaluation by Carrefour including three pilot installations with various suppliers. The expected value of the deliveries will be in the range of 100 million SEK. Installations will be completed during 2004.
"This contract is not only a significant win for Pricer but a genuine breakthrough for the ESL business as one of the leading retailers starts its deployment of ESL systems. I see this as the beginning of a long business relation with Carrefour as this contract only represents a part of their total network," comments Charles Radisson-Jackson, General Manager and Vice President Sales and Marketing of Pricer S.A.

Finnet goes to the EDGE with Nokia
(16.01.04) Finnet and DNA Finland are using the Nokia-provided EDGE network to trial innovative services.
Finnish network operator Finnet Networks Ltd. has chosen Nokia's EDGE (Enhanced Data rates for GSM Evolution) system to offer data service that is on average three times faster than GPRS. The service, currently undergoing public trials, uses Nokia EDGE-capable base stations provided under an agreement signed earlier this year.
Finnet, which operates a GSM/GPRS network for mobile service provider DNA Finland, is working closely with Nokia and the Octopus project, a EU-funded development project, to test new innovative services over the live EDGE network.

Fiskars buys in to camp lighting.
(15.01.04) Fiskars acquires CMG Equipment, US manufacturer of camping lights and flashlights.
Fiskars Brands, Inc. has acquired the shares of US-based CMG Equipment LLC, which is a manufacturer of LED lighting. The company, founded in 1998, will be part of the Gerber product group, which sells a range of camping and fishing knives and multi-purpose tools mostly in the US market. CMG functions will move from Chicago to Portland, Oregon, where Gerber is located. The company turnover is expected to reach to USD 3 million in 2004.
The acquisition is a step in Gerber's development to become a major manufacturer of outdoor recreational tools. The expansion into LED lighting supports the Gerber brand and offers new products for camping and recreation as well as makes use of Gerber distributors and customer contacts.

TeliaSonera sells Telia Finans to De Lage Landen International B.V.
(15.01.04) TeliaSonera has today signed an agreement to sell Telia Finans AB to De Lage Landen international B.V. for MSEK approximately 1.2 billion SEK.
Telia Finans is the leading leasing company in the small and medium ticket leasing segments in Scandinavia. Telia Finans has 140 employees.
"We are very pleased to have successfully sold Telia Finans to De Lange Landen. The divestment represents yet another step in TeliaSonera's strategy to focus on its core business, says Kim Ignatius, CFO of TeliaSonera AB. "The transaction further strengthens our already very strong financial position."
De Lage Landen International B.V., headquartered in Eindhoven (the Netherlands), is an international provider of high-quality asset financing products. It is a subsidiary of the Dutch Rabobank Group that is AAA-rated by the major rating agencies Moody's and Standard & Poor's.
The disposal is expected to generate a capital gain of approximately 0.5 billion SEK and a positive cash flow of approximately 6.2 billion SEK, of which 1.2 billion SEK consists of the purchase price and 5.0 billion SEK of reduction of TeliaSonera's debt.

Norwegian 1 Billion Euro shopping spree in border towns.
(14.01.04) According to the Federation of Norwegian Commercial and Service Enterprises (HSH) Norwegians went cross-border shopping for about 1 billion Euros during 2003.
Despite a reduction of the purchasing power of the Norwegian Krona, cross border trade has risen by 11%. Most attractive goods are meat, cheese, mineral water, tobacco, beer and wine. HSH is especially worried about the meat trade.
"Import quotas have risen from 3 to 11 kilos at the same time as prices in Norway have risen" says Thomas Angell of HSH. The federation is also worried about an increased price difference as Sweden and Denmark move to further harmonise with the EU.

Q-Med gets go ahead for GERD study
Q-Med has obtained approval from the Swedish Medical Products Agency to begin a study on patients with GastroEsophageal Reflux Disease, GERD.
GERD (GastroEsophageal Reflux Disease) involves gastric juice content leaking from the stomach up into the esophagus, causing heartburn, amongst other things.
“This is a very interesting market for us. 15 – 20 percent of the population suffer from this problem at least once per week and seven percent have problems daily,” says Bengt Ågerup, Q-Med’s President and CEO.
In the study a gel consisting of NASHA and dextranomer will be injected into the lower esophageal sphincter with the aid of a gastroscope, in order to strengthen the closing function and reduce the heartburn.
The six-month study, which will form the basis of an application for a CE mark for sales in Europe, will include 60 patients at five different centers in Stockholm and Uppsala. The purpose of the study is to investigate safety and effect.

Telenor and HP wins large ICT contract in Norway
(13.01.04) The contract, which was made public at a press conference held by Helsebygg Midt-Norge on Tuesday, is for the full development and operation of ICT solutions for the first construction stage of the new St. Olav's Hospital in Trondheim. Telenor is the main supplier, and will be responsible for design, projecting, supply, training and operation of network electronics, cabling, wireless networks, and advanced telephony solutions to the hospital. Patient terminals and portable data and telecommunications units are also part of the supply. Telenor will cooperate closely with HP Norway and a number of other sub-contractors, many of them based in the Sør-Trøndelag region in Mid-Norway. With future options included, the contract could secure Telenor and its sub-contractors a total turnover of up to NOK 1 billion for the duration of the project.
The new hospital aims to have Norway's most advanced IT solutions. Regardless of where they are in the hospital, health personnel will have access to wireless equipment that can provide them with such important information as patient journals.

Grundfos pumps up product portfolio
(12.01.04) As of 1 January 2004, the pump manufacturing Grundfos Group, whose main office is situated in Denmark, has taken over 94 per cent of the shares in the German based pump manufacturing group Hilge. With the takeover Grundfos expands its product portfolio and hopes to achieve a synergy effect in sales. The foundation Stiftung Berdelle - Hilge owns the remaining six per cent of the shares.
While Grundfos develops and manufactures pumps for nearly any purpose within the field of fluid transportation, Hilge specialises in a rather more specific area. The company focuses exclusively on the development of pumps that meet the particularly strict hygienic requirements of breweries and the dairy, food and pharmaceutical industries.
"By adding them [Hilge] to our extensive range of industrial pumps and digital dosing pumps, we are able to offer even more attractive solutions to the industries that must comply with particularly strong demands for hygiene", says Søren Ø. Sørensen, Executive VP of Grundfos.
In a separate announcement, reported by Danish Børsen Online, Grundfos will show a profit of over a billion Danish krona for 2003 according to CEO Jens Jørgen Madsen

Nokia beats their own best guess.
(09-01-04) Nokia today announced that it exceeded its sales and profit guidance for the fourth quarter of 2003.
"I'm pleased to report that Nokia achieved excellent fourth quarter results", says Jorma Ollila, Chairman and CEO of Nokia. "The strong seasonal development in both Nokia Mobile Phones and Nokia Networks exceeded even our own expectations. High volumes and an excellent mix in Nokia Mobile Phones delivered healthy sales and an average selling price that was up sequentially. Nokia Networks results were impacted
by stronger than expected year-end operator investments and product mix which resulted in much stronger than expected sales and stronger than expected operating profits."
Nokia Networks sales in the fourth quarter of 2003 were significantly higher than estimated and reached approximately EUR 1.7 billion (versus the previous guidance of EUR 1.4 billion). In addition to seasonality, this reflected stronger than expected year-end operator investments. Combined with a favorable product mix, this resulted in an exceptionally strong pro forma operating margin of approximately 12% (versus the guidance of pro forma operating profit to reach breakeven) in the fourth quarter 2003.
Nokia Mobile Phones sales in the fourth quarter of 2003 increased to approximately EUR 7 billion, up 4% year on year (versus the previous guidance of flat to slightly up) due to better than expected market development leading to strong Nokia unit volumes. Due to this and a favorable product mix, Nokia Mobile Phones' pro forma operating margin continued at the excellent level of between 24% and 25% for the
quarter. At the moment, Nokia is not in a position to comment on overall mobile industry volume growth for the fourth quarter 2003. However, Nokia Mobile Phones' fourth quarter unit volumes were 55.3 million.
Total Nokia Group sales in the fourth quarter of 2003 were approximately EUR 8.8 billion, about the same level as in the previous year. The company now estimates that fourth quarter 2003 pro forma EPS (diluted) will be EUR 0.28 - 0.29 (versus the pro forma EPS (diluted) guidance of EUR 0.21 - 0.23) and that reported EPS (diluted) will be EUR 0.24 -0.25 (versus the reported EPS (diluted) guidance of EUR 0.20 - 0.22). The reported fourth quarter EPS (diluted) was negatively impacted by a goodwill impairment related to Nokia Networks.

Back to basic building blocks when LEGO shows substantial loss.
(08.09.01) Loss of DKK 1.4bn in the LEGO Company in 2003
LEGO Company expects its 2003 result to show a record loss in the order of DKK 1.4bn, pre-tax. The reasons include an unforeseen development in the world toy markets, which nearly came to a standstill in 2003 and loss of market shares in key markets, which has led to a decline in global sales of 25 percent compared to 2002.
Executive Vice President and COO, Poul Plougmann, leaves the LEGO Company, which will get a new, simplified management structure, led by CEO and owner Kjeld Kirk Kristiansen.
As a consequence of the situation, a significant change of strategy has been initiated. The LEGO Company will focus on the fundamental product idea, as represented by the LEGO brick and the values of the LEGO Brand. It is a timeless and universal idea, which the consumers confirm they value highly, as clearly indicated in 2003: In spite of the general decline in sales, sales of Make & Create, the core products, were more than doubled.
"We have been pursuing a strategy, which was based on growth, increase in market shares and growth by focusing on totally new products. This strategy did not give the expected results, and if there is a discrepancy between the map and the terrain, you have to follow the terrain. So we will continue to adjust our cost base and simplify our reporting structure to achieve better and faster decision-making. This is a must in relation to the increasing and often very considerable volatility in the market preferences", says Kjeld Kirk Kristiansen.

NCC exits Estonian asphalt
(08.01.04) NCC Roads has sold its interest in Estonian company AS Talter to Lemminkäinen of Finland. The sales price was approximately SEK 26 million (EEK 45 million)
Talter is a construction company that focuses mainly on asphalt production and paving operations. The company is active throughout Estonia and has an approximately 18-percent share of the Estonian asphalt and paving market. Talter reported sales of about SEK 245 million in 2002
NCC Roads and Lemminkäinen were joint owners of Talter, with NCC Roads holding 49.8 percent of the company's shares. As a result of this divestment, Lemminkäinen owns 99.4 percent of the company.

Ownership shift in Metsä Tissue
(05.01.04) M-real has sold 66 per cent of Metsä Tissue Corporation’s business activities to Metsäliitto Osuuskunta and 17 per cent to Tapiola Group.
Both transactions will be carried out on equal terms on 2 January 2004. They are based on the encumbered value of Metsä Tissue, which was announced on 19 November 2003 and amounts to approximately EUR 570 million. As a consequence of the transactions, M-real’s holding in Metsä Tissue’s business activities will decrease to 17 per cent. In accordance with an earlier announcement, M-real also intends to sell its remaining share of ownership.

High prices for mobile messaging
(03.01.04) Room for competition in SMS domain says Swedish Telecom authority
Swedish mobile phone subscribers send an average of about 17 Short messages (SMS) per month according to PTS, the Swedish national Post & Telecom Agency. This substantially lags behind Sweden's western neighbors Norway who send an average of 63 SMS's per month. And most likely it is a question of price. Swedes pay 1.50 SEK (abt 14 Euro cents) while Norwegians pay abt 10 Euro Cent. Danish subscribers, who pay about 2 Eurocent click away 56 SMS messages per month and has the most important growth of SMS transmissions.
Not surprisingly, PTS draws the conclusion that there is room for more price competition in the swedish market.

Jingles under the Christmas tree
(03.01.04) Also this Christmas mobile phones were among the favorite items under the Christmas tree.
In Sweden The Phone House reports sale increases of 30 % in December compared to December of 2002. Most sold offer was the combination of a subsidized handset and a prepaid subscription, and the best selling model was and old classic, the Nokia 3310. "We had a good supply of phones and a competitive offer on the prepaid subscriptions", says Daniel Lindholm, Marketing Manager at The Phone House. "Christmas sales were at a record level" he concludes. The 5 top selling phones were:
1. NOKIA 3310 (prepaid)
2. SONY ERICSSON T610 (with Camera)
3. NOKIA 2100 (prepaid)
4. SAMSUNG E700 (with Camera)
5. SONY ERICSSON T100 (prepaid)